The big problem is that the pipeline's been cut off.
You used to be able to interview 20 local people and get a choice of great candidates because the local people had come through the ranks and had to learn their shit.
These days you don't take on junior people and train them up. For the same money you can get the already experienced person over from India, or Malaysia, or China, or Bulgaria. Or if you're a multinational, don't even get them over: Open the office there, it's even cheaper.
So there aren't the junior learning roles, the apprenticeships, the low paid jobs in which people can learn the skills and become the great IT people we need.
It's a fucking tragedy and it's taken a failure of the outsourcing model to reveal the sudden disconnect and gap that's been created, and it's going to be another decade before that gap starts to be filled.
So right now it's actually true: there is a shortage of great people. Not because the locals aren't capable, or couldn't become great, but because there just haven't been the openings to let them develop those skills.