TCS hires mediocre people because of cheap labor, which fits their outsourcing business model very well. Indian government tenders usually go to the cheapest bidder, not the most practical one. Because of this, even reputed companies like BCG have had to basically offer work for peanuts to secure government contracts away from the competition.

My banker gave me good advice when it came to Indians - the first price is not the final price. Always be ready to offer a discounted price that looks like a bargain to the Indian buyer. It's alien to me but looking at my parents, I must agree.