True, but having high-end developers in-house is both handy, and good for the economy!
And as biased and prejudiced as this may sound, I've found that workers from India and China often have "shake-and-bake" qualifications.... can you imagine how frustrating it is to work with someone who apparently has a Masters in IT yet doesn't understand that "var1 = textfiedl1 + textfield2" is NOT something I want to see in proper VB.Net code? Nevermind that I swear I heard him utter "wow, that's genius" when I cobbled together a session-based auth script.... ugh.
Like I said above, outsourcing basic, labour-intensive stuff is OK as long as you can verify qualifications and get plenty of references. Personally, I would never, ever outsource anything mission-critical or "high-end" as I'd be more than a little afraid of having IP compromised (not to mention security).
All that aside, one golden rule I swear by is:
Real-world experience is more important than qualifications.
Always.
I do not care if you have a Masters degree in Information Superhighway Architecture Specialization and Awesomeness. If you have 3+ years of experience and can exhibit resourcefulness, experience and intelligence, I will hire you over Mr PhD/Masters/B.IT/B.EComm/Fresh-out-of-college.
Maybe slightly off-topic but pursuant to the whole "verify your resource first" mantra.