There is a lot of speculation here and for someone who has about 20+ yrs of exp in IT, including quite a few years in silicon valley and nearly 4 yrs at NetApp Bangalore (thankfully I left in 2012, but still have many friends in there) here is few things I can say.
Speculation_1: Average salary in Bangalore is below 5 bucks (thats less than US$11K per yr). Even a collage graduate at NB gets more than 2 times that. Average would be way above. More importantly, the overall expense (site, power etc etc) are much higher. I remember in one of my previous jobs, our Bangalore office rent was more than twice of our south San Jose office rent. In one of my another job (where I headed the Bangalore site of a US company), we used the number around $35 per hr and that was a small company with an pretty small office with an address in very low end of the market.
Speculation_2: Lot of jobs are outsourced to Bangalore. That's simply not true. I joined NetApp Bangalore in 2008. What I have seen is, the employee strength in NB has been almost same since 2010 (might have gone up by single digit %).
Speculation_3: Not much layoff at Bangalore. One of my neighbor works at NetApp for nearly 10 yrs and she got laid off last week. What she said is, downloadbesttorrentblog.ru in Bangalore is more than the global average of 10%.
So let's not channel the frustration in wrong direction. Thanks.