I've tried India in a couple of places and I was let down each time. Perhaps it was the companies I used, but its such a task, that at the end of the day it is cheaper to either do it at home, or farm it out within a developed country. "One company had a power failure for two weeks, and I needed the design quickly".

I came across a not for profit website, in Issue 144 of Web Designer. Find students and jobs on studentgems.com - the online network of students, businesses and individuals. Basically its a link to UK college media students. I haven't used them yet.