[dennisw]

Obviously this a way for an umprofitable hi tech company to make some money in this lousy economy. Some Indians could start a hi tech company that does not much more than this.

[angkor]

Or they can simply hire H1-B Indians at 1/2 the normal rate, and resell their labor for 3/4 market rates (thus undercutting domestic competition).

In fact I know an Indian guy who started this kind of company in NYC several years ago. Because of his low rates he gained excellent contracts, and because of huge profits was able to sell the company for several $$million after 2 years.

I know that some of the (well-known) financial firms he worked with are now moving their IT to India (they figured out the scam), so the company is probably not so profitable now.