Come on what general reputation of incompetence? Just take a look at proportion of indians at top engineering and management positions in Tech Companies.

This "meme" is nothing but some racist stereotype pushed by old commenters on Slashdot style website who paint themselves to be next turing award material.

Guess what the Market never lies and you get what you pay for! Those who pay the best/most still have large number of indians throughout the hierarchy.

So that meme is nothing but outright xenophobia not too different from the ones propagated in past against Italians, Irish, Japanese or Jews.