The position I had in 2010 (IBM Level 1 Service Desk at Honeywell) was outsourced to India. As other commenters have said: They can barely function at Level 1 and without a script to follow they get lost (despite advanced technical training which some possess, their (caste-based) culture still demands they "stay within the box" in everything they do. They cannot perform "proper" Level 2 - troubleshooting and resolving 75% or better of everything not solved at Level 1 - partially because their Level 1 cannot perform "proper" Level 1 (60%+ SLA for First Call Resolution).

Other outsourcing areas that are starting to see jumps in business, besides the Phillipines, are: Brazil, Ireland. I agree with @Hans Schmidt and his assessment of the Phillipines vs India for Level 1 support. IBM has outsource contracts in India, Phillipines and Brazil.

FYI: At least one Indian company has started outsourcing some of its work to Atlanta, GA.