Outsourcing in the CG industry is hardly new. However, It won't be to India. Shanghai is a HUGE market for cheap CG/2D labor, and has been for over a decade.
The entire industry itself is collapsing, but not because of outsourcing...its because of greed. Digital Domain ring any bells? They had several "studios" spread globally and went under really fast. Shady practices (such as CHARGING students to be interns there for class credit..essentially them PAYING to work) throughout all levels of the company forced them into the inevitable closure. (ironically, they won an oscar for life of pi that same year, AFTER they were gone). CG Artists work for a fraction of what we used to due to the knowledge that there is always going to be a "cheaper" options, but not from outsourcing. Locally, companies will snag up anyone fresh out of college and pay them almost nothing in exchange for them to have "bragging rights". They are capitalizing on fanboy dreams, seriously. Companies like ILM flat out say "You can tell people you worked on star wars". THAT should not be a job perk. This goes all the way to the top, and things like writers, concept artists, animators...important people who assure the quality of the final product, are being basically done by those with little/no experience, while the high ups get a huge huge huge pay boost in the end.
Add to that the insane over saturation of CG films the last few years...all trying to be the next "pixar". Sure a lot of these end up breaking even or even making a profit with home movie sales, but no where near as much as it used to.
It's really hard to describe unless you've been watching it go on for years.