Not surprised. I've had a few interactions with Subaru connected services dev team as an external contractor from another car company, everyone was everyone else's cousin, friend, homeboy from India. Nepotism was rampant, no one wanted to listen to advice, a strong culture of corporate antibodies had formed. I'm surprised they even got it to work at this level.
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I worked in situations where things were outsourced and yeah the Indian experience was horrific. But that also was influenced by the nature of the relationship.... they didn't work "for us" in any real way.
I worked for a company where we (a Midwestern company) were acquired by a valley company and at HQ there was a clear divide between the Indian (US citizens, not H1B) folks and the local CA team. It wasn't bad, but you could see it socially and feel the vibe and such.
I traveled there a few times and I was just friendly and ... man they were great. Very friendly, very professional, and highly capable.
Sometimes I think the business relationships also creates the informal "working culture" too.