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If they could, they'd be doing it already

They are doing it already. In the recent years, US software companies opened many development centers in India and other countries, sometimes directly outsourcing jobs previously done in the US. Without the H1B programs the process would only go faster.

This is a common pattern. When a new technology is developed the companies that originally produced it could pay their workers more and still remain highly profitable. But sooner or later, the competition in other countries catches up and the companies can no longer sustain the wage differential and be competitive at the same time. H1B may actually be delaying this by draining highly qualified specialists from other countries.