I could probably find the link but you have to be a subscribed to Barron's Online to be able to read the article.
The guy in the indian guy in the article is pretty cocky and essentially says his guys are the equivalent of Harvard MBAs. The article talks about how the number of CFA charters being awarded in the US has rolled over but in India and China it is increasing dramatically. Part of the reason is that there are so many engineers in India now that people are starting to look for other careers to pursue to avoid the competition. But they talked about how for $25,000 a year they can get what you'd have to pay >$100,000 in NYC, Chicago, or San Fran.
But Deadcat is right. I think we are still a few years removed from the bulge bracket firms outsourcing the modelling and other quant work. So I think it is bad for guys just trying to break into the business as a sell-side associate or junior analyst. I don't believe most buysiders are going to want to talk to someone in India so sellside analysts will just assume more of a marketing/sales role than they already do. In essence I think sellside analysts lives will get easier in many ways as they will have to do less modelling on their own. He/She can just tell the India team to build a model for XYZ based on these assumptions and have ready for me when I come in tommorrow then the analyst can do all the writing in the morning and make his calls the clients.
Ultimately, I think where we are headed is analysts in the US will be 95-99% buysiders with the rest being sales analysts for the sellside.