Of course companies will optimize for the best bang for the buck labor the same way you optimize for the best bang for the buck products when you shop for something, that's how capitalism works, it's a two way street.

Now if the move to India, or anywhere else, lowers the development cost without lowering the product quality, why is that a problem?

I would understand this being an issue when offshoring causes the quality of the product to go to shit, but it often isn't the case anymore, so what's then problem here?

Unless of course you mean the problem is "THEY TOOK OUR JOBS!" which would be understandable but like I said, capitalism is a two way street.