I don't know how the economics work out at the moment, but India does have a couple benefits. A lot more people speak English well (like ten times as many), and it's culturally more accessible to the west. They were under British rule until after World War II, and have in general a long history of closer ties to the western world.

It's also less politically sensitive in the US. Americans have a knee-jerk reaction to China that goes far beyond outsourcing and call center complaints. India is seen as an ally rather than a potential military threat.