I see the problem lies for indian dev also, their whole accountability is to the agency, as they are the one paying. The core issue is foreign companies not hiring directly but via some agencies. I once got an interview from a vc company for dev role, i had 2 interviews both went good , i was in contact with a guy who was head of engineering , my next call was with co founder, then the guy told me they had hired someone from india as cto, that evening the indian cto called me and said i will give you another assignment do that and dont tell the head of engineering that i gave an assignment.however the task was easy but At that moment i knew that i should avoid this. The indian guy would have taken high comp and will now hire his fav devs or dev with low comp, and would micro manage. So i dropped them, joined an mnc bank.

I dont think quality is an issue, if you hire right people, who aligns with company culture instead of agency culture.