On the contrary. The products of our public mis-educaton system cannot shine the shoes of many Indians in IT. I've worked at many IT shops in the midwest with significant Indian immigrant and outsourcing components.
In general, they are more capable of dealing with facts and logic whereas young American workers have only learned how to "feel" about a topic. Also Indians have a better work ethic than many of us Americans (I say as I chat on the internet at work).
I've outsourced all over the world for many years at many companies, and have several independent experiences with Indian outsourcing. Ignoring the cultural problems -- they have some cultural attributes that make them pathological to work with from an American standpoint -- they are not particularly skilled or deep compared to anyone else, and have noticeably inferior average skill to some other countries you can outsource to. As a result, Indians are used primarily when quality does not matter but cost does.
If you need quality development work or technically sophisticated development work, the Anglosphere and Europe are still the best choices, and there is no cost savings to be had in that area unless you outsource to Eastern Europe. And there are some other different strengths between Europe and North America as well. European developers tend to be very good at strictly nailing a specification down the last dotted 'i' and crossed 't' in a way that North Americans do not. North American developers still seem to consistently generate some of the most creative and interesting engineering designs to solve complex problems.
Where you outsource (or if you outsource) depends very much on the type of development and primary development goals. There is still plenty of development work that is best done in North America. The impedance mismatch with Indians is so high that it is usually no cheaper than moving development to flyover country in the US in the final calculus. And in fact, that is where most of our development work is going these days.
The outsourcing to India fad is over. Anyone with real experience outsourcing is well aware of the cost-benefit analysis involved, and for the majority of development there are far better options.