Partly true, however there is another aspect to it as well. It's just that Yahoo and other blue-label firms have an exalted notion of who should work with them. They tend to go for the fashionable set; the english speaking, high fiving crowd of self labelled developers who cant code themselves out of a paper bag.

I know of at least one "dynamite" programmer whom Yahoo! India rejected because the guy didn't have a graduate degree. As usual, he was too busy coding to go get a degree. Well guess what, it's been pretty interesting working with him.