There may be a lot of potential – Indian schools churn out 400,000 new engineers, the core of the high-tech industry, every year – but as few as 100,000 are actually ready to join the job world, experts say.

Instead, graduates are leaving universities that are mired in theory classes, and sometimes so poorly funded they don't have computer labs. Even students from the best colleges can be dulled by cram schools and left without the most basic communication skills, according to industry leaders.

When I was working at HP, I was consistently hearing stories of folks who had never touched a computer until they got to the US.

India is great at producing paperwork-as Enron found out. There is a huge incentive to produce "engineers" with a bachelors degree(only when someone has a bachelors degree do they qualify for an H-1b visa)-and that exactly is what the Indian educational system is doing.