Yeah I think some people in Indonesia also do the same thing, however instead of renting an office space, they simply use their garage or dormitory room (there are thousand of them) so the expense can be cut to minimum.
Today's the currency exchange $1,- = Rp.11.000,-
just for comparison, a MacDonald package cost around Rp.20.000,- after tax so it's less than $2,-
The reason of asking low prices is the price war starts between the service providers. The reason why Indian or Chinese people do it for low price is because of the cheap labor of the country.
$1 = 51.65 INR and the poverty level is very high in India and other neighbor countries so, I believe they do it manually. Some of them use software as well but that just doesn't work well...