Then Google, IBM, et al in India would be starving for talent.
On a micro scale you are correct - the hiring problems are a function of how much they are willing to pay. But that's not really the crux of the problem - the problem is that, on any pay scale, the supply of competent/qualified people is smaller than the demand.
That's the way I've experienced it in the US anyhow. If you want a software engineer and are willing to pony up a lot of cash, you will find someone good. This doesn't change the fact that the supply pool is still woefully undersized relative to the demand.