Outsourcing = Piracy ?

We all know that the reason behind outsourcing to India is because of cheap labour. Most western-country companies find it very economical to outsource to India. For $500 a month for a college fresher in the IT industry, its definitely 10 to 20 times cheaper than hiring locally. My friend Baiju has given me a very good explanation to why the real reason for the success of outsourcing (in IT field) is piracy: Cyber law in India is at the infant stage and was totally non-existent till 2005. Ordinary policemen here would've at the most seen a computer and know the only IT words - 'computer' and 'internet'. Even if they did know how to switch it on, they definitely wouldn't get far enough to check the genuineness of Windows. More officers are getting trained into cyber law, but process is going time before it gets into full swing like in the US. As a result, Indian kids get to play around with all possible cracked-software and job-seekers try out their hand at it before applying for a job. This makes it easier for them to answer questions at interviews. I definitely am not defending piracy here but trying to point out my friend's valid point. Come to think of it, opensource will dominate in India if free or lite versions are not available for proprietary software. Even Microsoft is releasing free versions bundled as Express versions. This partly due to the fact that web-versions of almost everything is killing desktop apps. I would disagree with Baiju's point to some extent because US colleges are given most of the software, esp from Microsoft, for the school goers to experiment with. Interesting joke made by Jay Leno a few days back : Went something like this "A company in India is outsourcing work to Egypt because its cheaper ! If it goes this way, then later Egypt will outsource work to another country and then they again will outsource back to the US because it'll be even cheaper as most of them are unemployed loosing their jobs to India long ago. This will be one big loop." If a company in India is currently outsourcing work to another country, then it has to re-evaluate their HR team for being too dumb not able to find talent in their own backyard ! Oh...in case you are wondering - I got genuine OEM Windows XP Pro but use free or opensource (like Apache, PHP, MySQL, Gimp, Java, VS 2005 Express etc) for my applications.