Outsourcing coding – the end of programmer founders?

My friend is a programmer and currently working on an education sector app. He's raised about $40k in funding but interestingly even though he could code himself he prefers to instead outsource the coding for $10/hour to India where he argues he can get a better job at a lower price. Given that the status quo in Silicon Valley is that hacker founders is best what do you guys think about this trend?