In an interesting 9/22/05 Washington Post article, "India Vies for Share of Video Game Market," S. Srinivasan describes the growing ranks of entrepreneurial developers who are "trying to make India the world's studio for developing games on mobile phones, computers, and consoles." They're reportedly already attracting "big names and big money." They're not just competing for outsourced game development work from the West, of course; they're also creating their own games for the Indian market.
Game offshoring to India began in 1998, with Dhruva winning a commission for a portion of the "Mission: Impossible" game. Dhruva Interactive, based in Bangalore, rencently completed a project for Microsoft this year and launched its own tennis game for mobile phones in May.