Chaitanya: Outsourcing to India doesn't necessarily mean they cut cost ...
Exactly Chaitanya! I have heard of good results in outsourcing to India. Conversely, I believe the Novopay Teacher's Payroll application was developed in NZ - they are still trying to iron out the problems and the people impact was far more severe.
I think the developers in India didn't do too badly really - the site looks good and (was) mostly stable. There will always be bugs to fixed but these should have been tested here in NZ as a check that developers back in India were on track. And the speed issues are probably may not be a developer issue, unless it is to do with database design and indexing. Initially there weren't too many problems and I think the later landslide of issues (loggong in and page display) happened when quick fix-its to initial problems were applied without thinking things through.
Developer's aren't necessarily security experts but the SQL injection vulnerabilities are kind of unforgivable at any level of the product development and programmer's writing for the web should have learnt about this issue in webapps 101 - I know I did! People at all stages of the development needed to ask and re-ask the question 'What about security?' and make sure they got the answers.