I fully agree, but I am living in Denmark where software developers are either outsourced from Poland or from much further East, or employed only while having a relevant college degree. There is no way to get into the industry without that, except being part of a startup.
That is all due to fierce competition.
Slightly OT: If this is following the same pattern as the UK it won't take long before people start realising that when you outsource software development you always get a lower quality end result than doing it in-house.
This is because the level of communication required opens up more chance of misinterpreted specifications etc, and if they're doing it cheaper, they probably aren't putting the same level of effort in.
They did this where i worked and outsourced development of a system to a group in bulgaria that proceeded to make a complete pigs ear of it. You get what you pay for.