Yup and that is why people like Narayan Murthy are the greatest criminals in the history of India. Ruined an entire generation of Indians by teaching them to do second hand work and stopped any original thinking from happening. That is why they are so behind China.
I think you're getting the order of causation reversed. The alternative to Infosys in the 90s would be to move abroad or work in a government job. You can't build a Porsche on day 1 - you have to start with the 10k car.
The consulting companies kick started the engineering base that eventually led to MNCs/big tech setting up offices in India, and the broader startup ecosystem today.
In an ironic twist, cheaper white collar workers should make services on the whole cheaper. Something that would be good for blue collar/hourly workers. In the same way that lax borders are beneficial to white collar workers by making goods cheaper.
Terrible for America. And terrible for India.