Sometimes companies will hire cheap labor in order to save money which in turn allows them to make a bigger profit. Some of the countries that have struggled in the past are known for hiring cheap workers so that they make more money by the top people at the company. For India and other Asian countries there was a period of time when they were known for hiring cheap workers and mainly it was in sweatshops but is also believed to happen in the IT field.
It is believed that India has decreased their cheap labor but they may have succeeded due to the past and how they conducted their business in the past. I don’t think that their entire success is based solely on their cheap labor.