If you value software developer's talents at $x per year, it shouldn't matter where they're located in the world. Perhaps you'd pay a slight premium for in-house workers vs telecommuters but only if that made sense for your business.
Whether they're in New Delhi, San Francisco, or some no-name town in middle america, if they've got the skills to develop your software and provide a similar value (compared to each other), paying them a standard rate is fair.
edit: I'll also note that "fair" isn't the standard for business these days, but it's interesting to see some companies attempting to do things differently.