This is a common misperception, and part of the problem. The fact is, only 30% of software projects are successful. Why? Because (here is the real reason) the vast majority of managers of software projects don't know what the heck they are doing.
The managers are themselves people who might understand, in a general way, the business -- but most of the time the manager assigned is assigned because they are the manager that is least needed. They know nothing of gathering requirements. They couldn't tell you the difference between functional and nonfunctional requirements, or why they are important. They don't understand how facilitation techniques aid in requirements gathering. They don't understand design. They don't know how to translate requirements to design. They don't know how to translate design to code. They don't understand the need for testing and never budget for it. They don't know why regression testing is needed and what happens if automated testing is not funded.
They just go - oh, hire some Java jockeys who know J2EE, use the web application server du jour, and get some Oracle guys. By the way - we need the system in 3 months.
People who just know the programming language and the tools can no more build a system than you can take a bunch of guys who have two years experience as carpenters, cementers, electricians and plumbers and say - guys, go build me a 10 story building. Yeah, that'll work. NOT!
Problem is, they forget the old adage, "you get what you pay for".
Having seen three projects that involved Indian and Pakistani programmers go down in flames (not my projects, thank God!), I had to laugh.
Most Indians and Pakistanis I've worked with have been pathetically bad programmers. I'd say that half the American programmers I've worked with are bad, and 2/3 or more of Indians and Pakistanis are bad.
Programming is difficult, regardless, but I've found that Indians are some of the worst I've ever seen (and these are people with advanced degress...Masters and Ph.D.'s in Comp. Sci.)
Russians can be good, but not any better than Americans.
I'll take American programmers anyday. Regardless of cost.