> H1B visas suck for IT and software workers.

H1b only sucks for short sighted people. Places like India would in any case have more software engineers available, than the US. Moving and hiring best of Indian engineers in the US kept teams operating in the US from being offshored wholesale.

Software isn't a car, doesn't require physical transportation.

An understaffed team in the US would be worth less than an offshore team with offshoring overhead.