Because TCS, HCL, Wipro, Infosys, and some western companies also keeping outsourcing teams there (i.e. Atos) provide consistently below-absolute-zero quality that pushes and enforces bad stereotypes.
Because the real issue is not Indian people or their skills, but corporations that established a pattern of supplying people whose only skill is alleged knowledge of english language. The best thing I can say about those companies is that their IT sweatshops are better than starving, and those who learn anything seem to escape to better workplaces.
I have yet to meet as consistent (negative) quality signal as finding out the job has been outsourced to consulting company in India. I have worked with, well, low-quality coworkers (and betcha been one myself more than once) from many countries - but nowhere else there is such negative selection.
For comparison, there's no such correlation if the coworker is indian but working elsewhere.
