It's not so much as arrogance as it is just being honest about the quality of outsourced work. If you were worried about offending people, you would come up with all sorts of excuses for not outsourcing work. But honesty is not always the nicest thing to hear. I've been working with our outsourced team in Bangladesh and their quality of work is much less rigorous than that of our in-house team.

"Indians devs are levelling [sic] up fast and I predict that in 4-5 years the quality gap will become almost non existent."

You may be correct but the Original Post is talking about now*. Also, you seem to agree that there is a "quality gap".