Back in days when I was looking for a job, Infosys was the dream company to work for in India for a lot of top talent. They would hire only the toppers from top 10 colleges in India and that too with a proper puzzles test like all top US companies. So they hire people based only on academic credentials and then train them for 6 months in a "Infosys University".

I think the perception in US about the unqualified Indian engineers is because you might have seen engineers mostly in their budding years(1-3 years). As with everything else, those people do learn a thing or two as they gain more experience.

I came from India(never worked in Big Bodyshop like Infosys) and have been in US for 5 years now. I have seen really a lot of really dumb people and some really good people on both countries.

Check out the puzzles book that Infosys uses to hire people in India. http://books.google.com/books?id=F-idu9oxkdgC&printsec=f...