Hmmmm. While I was in Afghanistan, most of the contractors (paid by the US government) hired people from many different countries. This seems to be the most cost-effective way to run the logistical side of the war. I assume the contracting to the Indians serves the same purpose.
Your proposal would have the effect of increasing the cost of the government doing "business," and thus lead potentially to higher taxes, at least if we get a "tax and spend" administration in November rather than a "borrow and spend" one like we have now.
I don't really have an issue with outsourcing, since I have a rather libertarian bent when it comes to market efficiency and am almost never in favor of tax increases. Carrying your taxation logic to its conclusion, the government would, for example, also be discouraged from hiring contractors like KBR in war zones or buying weapons from Beretta and FN.
If the Indians do the job as well as Americans for less money, I say more power (and money) to them. Americans will eventually have to adjust their expectations about earnings generated by jobs that other people can do just as well for less money - or we can continue down the self-destructive road of ever-increasing tariffs and government subsidies for inefficiency.