We have our own locations in Central America and India.
Average cost per head runs at $700-$800/mo if you include all expenses such as office overhead/bandwidth/coffee/toiletpaper etc. etc.
In India you would be able to hire good jsp programmers for $700/mo depending on the location (mumbai would be expensive). However with 'just' hiring them you're not finished, they all need a desk and chair ;-)
As in most countries you would need to hire 10 people to end up with maybe 6 people that really work out so paying up to $1000/mo to go through a so called outsource company isn't too bad.
some samples of the quality of work you could get:
http://tgpexpert.com/galleries/tcg_cnc/_01/
http://tgpexpert.com/galleries/dm_18vision/_01/