Agreed but will you be wiling to put in their additional oversight (at least in the beginning)for more cost effective labor and potentially more work output (if effective systems are in place and there is good oversight).
Note that the same devs are able to compete with their US peers in companies like Google, MS etc. who have local presence.
I totally relate to your challenges. But things have changed a lot of now. Developers are more exposed to product development environment and while they will still need to understand the US business culture there is a far greater willingness to learn. When I look at my friends who did their education in India but now working here in the US and compare them with their peers in India, I don't see a difference in skills, only a lack of exposure.