Is India a good destination to outsource to?

In recent years India has emerged as one of the most favored destinations for outsourcing because it provides the following sustainable advantages:

Large English speaking population
Talent arbitrage
Cost arbitrage

India has also gained recognition in the last 10 years as a stable and well managed economic powerhouse:

Healthy foreign exchange reserves and export earnings
Improving fiscal deficit
India's current ratings are BB+/Baa