The guy who started Funambol talks very highly of having the company HQ in silicon valley, and development elsewhere. In his case, Italy, which really does have a lot of bright people who tend not to have as many exciting options locally. So building a 'bridge' like that can get the SV company good talent at good prices, and give the 'locals' a better job, perhaps at better wages, and with more interesting work to do.
Right... like the talent shortage is any better in Boston. We've been trying to hire a Ruby on Rails developer for nearly 6 months: Everyone is happily employed, or doing their own startup.
Have you tried increasing the salary offering, or advertising the position on the website itself?
Would you mind linking to a job listing?
In all the discussions of "startup culture" we've had here in the Twin Cities, this lack of mentorship by seasoned startup veterans always comes up as the main thing that we're lacking.