First, before you make that great leap for school, try getting atleast a part time job or volunteer work in the type of environment you'd like to work as a librarian. (Librarians tend to get typecast, so if you start out in a public library, it may be difficult to transition to an academic library....) There is a huge emphasis on experience, experience, experience from what I've found in the years I've been poking around. It would be a good idea to find out if you actually like the work...and if you like working with librarians.
Next, outsourcing is already happenig to some extent with library related work in general....Cataloging, Collection Development, etc. Libraries basically pay companies to provide these services that would have been provided by on site staff in decades past. Whether these companies are using staff in India, I don't really know. As budgets tighten across the field, many public libraries are hiring people as paraprofessionals at paraprofessional salaries instead of librarians. Not surprisingly, people with library science degrees are competing for these positions.
In the academic arena, it may be a good idea to have a second master's or evena P.H.D. However, people with teaching degrees and experience seem to have opportunities as well in Information Literacy.
Yes, the salaries can be horrible and there's a great deal of competition for these jobs, regardless of salary. However, many people are very happy working in libraries despite the generally poor wages in comparison to the required level of education and experience. It's also a good idea to either be living in a large metro area or to have the freedom to relocate for work.
There's work out there, but you have to get experience and be prepared for some fairly dull and repetitive work as a clerk or volunteer.