It is normal to see IT Engineers (coders) define they career as X programmer where it's now time for every programmer to have full-stack skills and treat programming language as a drill-bit in a tool-box.
Since the services companies benefited earlier by recruiting a graduate and training them to be X programmer for life, the institutions didn't have a reason to adapt to changing times because 99% of their students were placed in these companies and remaining 1 % in Google, MS etc. [Fun note - Sundar, Satya, Shantanu, Sanjay Jha , George Kurian etc. belong to that 1% and yet capable enough climb to the top-most seat.]
But I wouldn't buy the 'Indians not hardworking' stereotype,for an average Indian every opportunity in their life has to be fought for with thousands (some times millions) of other competitors. I've seen several people who were the first graduate from their entire family history while living in a hut and create a sustainable life for them; thanks to these services companies.
But it's time for a change, Institutions should build skills which make their students recruit-able by startups.