There is no shortage of people with an CS degree. But there is certainly a shortage of people that can actually write good code for non-trivial tasks. Proper CS is hard, you need to know tons of things about very different topics from algorithms and maths, to hardware details and interfaces. In addition problem solving and abstract thinking skills are required. Only a small fraction of people is able to do that and even if people have the talent, but are only into CS for the money, they will likely never learn enough.
And you believe that H1B IT workers brought in from India will satisfy this requirement? If so your experiences must have been vastly different from mine.