Wrong-o, Ravi. It isn't about the "best" man; it's about the "cheapest" man. If Americans were paid less than a third of what you are paid, we'd be taking YOUR jobs. At least be intellectually honest about it and lose the air of superiority.
While you're at it, Ravi, at least be man enough to acknowledge that your country hasn't come up with an original, ground-breaking technology in centuries. You're capitalizing on America's work. Nothing wrong with that.......but refer above to my comment on your air of superiority.
It's about neither, because it's about both. What matters is cost factored along with productivity. If the "best" programmer can write an app in 1 hour and charges $500/hour, while an Indian programmer can write the same app in 5 hours but charges $20/hour, then unless the customer will lose money due to the 4 hour delay (enough to nullify the savings), he or she will purchase the product from the Indian programmer.
So, it's about both cost and productivity. Even though, in this example, the Indian programmers productivity is lower than that of the "best" programmer, his productivity is high enough, when compared to his cost, to get him the project.