Yes; in a way it's laundering by placing a 3rd party in between to achieve the outcome, but the contracting shop could not complete or offer such savings without leveraging the H1-B system. Remember you can't replace employees with contractors, and outsourcing is suppose to be taking your service and transitioning it to specialized experts, so leveraging outsourcing to do layoffs, to cheap staff new to the field and training them is walking a line. Also instead of repositioning your staff into the new 70+ positions, forcing them to leave then re-submit is poor leadership, and it forced them to renegotiate new lower salaries.
No. I have no problem with outsourcing, or foreign labor. I've lead such efforts myself. I'm not a xenophobe. I've not in favor of scrapping H-1B Visas. It's easy for you to dismiss it by tossing labels. I'm not even angry or anti-Disney; I'm smart enough to see it for what it is. I've been in IT and a developer for a long time. I've seen it all. I didn't know how badly the H-1B system was being used to create labor forces for the maintenance of services instead of what it's for - bringing in hard to obtain talent, until I encountered it. Jobs are being lost to this, highly talented jobs, by the thousands, and it's not suppose to. It's suppose to augment your staff. Almost overnight 3/4ths of our office building were speaking a different language. Even if you don't see any of it that way; do you really think you'd approve if you had a good review, a raise, and then were told you're being replaced and you have to train your replacement or they're going to keep the severance you're entitled to by corporate policies? I don't think anyone sees that as professional or acceptable.
Oh I see. That's an interesting point. I only ask because when I copied the link into a new post I realized it was the only time I'd ever done that in years of using G+. In any case, as someone who's never really worked in a very large organization this post confirmed some of my previous suppositions about why I'd probably never be happy in one :/