To the point. I have met a few mind-blowing people who used to work at Infosys/Wipro/TCS a decade ago. Things have completely changed. Outsourcing/service based companies do not get any respect of Tier-I/II college CS people these days. 
Frankly, outsourcing is going to stay. What is going to change is the way things are done. These companies have already figured out ways to get things done from not-so-good people by making use of the right tools and process. This will mostly likely be expanded further where development of the most common things would be mechanical without any kind of creativity involved. And yeah, people on the other side would move on to building tools that enable it :)