I know very few people who have had good experiences from "developing countries" outsourcing, those that do have the following

• Absolutely nailed down specs
• Technical advisors in their own country that can check the quality of the work coming back
• Pay a premium (In your case say $15 an hour instead of $10)
• A good set of testers in your location who can find any issues quickly

The nailed down spec is the essencial bit, my experience of Indian workers is they are hard workers, churn out code like there is no tomorrow however they will follow the spec no matter how bad it is they wont question it, they will rarely say no to you when a western developer would (Sometimes a good thing but normally gets you into trouble).

As for the £60 per hour thats fairly reasonably, on the rare times I do freelance work I normally charge £700 a day, or £1000 per day for certain types of project.

Jen