> Taking in natives mean pay has to be high.

More than pay, it is the "culture fit" that these companies seem to care more for.

The business model of these companies involve getting most of the work done in India. For that to work, one needs phone calls at odd hours. An Indian employee will be more willing to accommodate these demands to attend work-related calls at odd hours.

As regulation around H-1B and similar work visas tighten, Indian outsourcers are trying to hire people of Indian origin who have green cards or are American citizens. I know from a handful of acquaintances that these employees are paid well - hence my thesis that it really isn't about the money.