Yes, it's cheaper, you can hire more people, but more people is not really needed unless you are doing something that has a bunch of repetitive stuff.
Indian Consulting companies are truly hopeless, if you have worked with them you know this (Wipro, Tata, HCL, Infosys).
The MCPs that use Indian labor do most of their QC not in India, they use Indian workforce to reduce the average labor cost, MCPs also do have plenty of repetitive work.
So now we are looking to Shell and Exxon, yes Exxon is beating us but it would be a massive stretch to say it's got anything to do with Offshore centers (you could certainly attribute it to their better decision making). What is the verdict on their programs?
So this the best idea we have? To go after some marginal cost decrease, which may work, but could also just create more bureaucracy and management, in a location that has zero oil and gas production. Not very inspiring way to spend capital, and we are going to lose some good people through this uncertain period.