I believe the author is simply mistaken that H1-Bs are the problem. H1-Bs are limited enough that they can't be responsible for the volume of outsourcing. They also carry salary parity requirements, and while H1-B holders rarely actually make market salary, the savings still aren't enough to prompt a wave of outsourcing. There was a problem at one time with H1-Bs, but the H1-B lottery has become so competitive that it's not a reliable option for companies to base a business model around anymore. The majority of H1-B recipients these days are foreign nationals who attended American universities, often with masters degrees. Those are the kinds of foreign nationals we want participating in the US economy.
The problem today are the L-1 visas, which are relatively unregulated. L-1 visas are for foreign nationals in a management capacity whose companies wish to transfer them to the US. These visas only require that the employer pay the employee's living expenses, and the employee receives the normal salary they would make in their home country (!).
All of this is fine until you start to stretch the definition of "management". Which many consulting companies (Tata, Infosys, Cognizant, etc) have started to do -- they can take a person from India who is paid ~$25,000/yr (a good engineer's salary in India), fly him to the US on an L-1 visa, and charge him out to the client at $100/hr. An equivalent US-based contractor rate for the same position would be $125/hr and have margins around 10-15%. But the offshoring firms can undercut US-based contractors by 25%, eat all the travel/housing expenses, and STILL make well over 100% margins.
L-1s are actually the problem. There's no salary parity requirement, there's no requirement to look for US-based candidates of equivalent positions, just a requirement that the person is "acting in a management capacity" and has worked for the company for at least 1 year. It's hard to prove that someone is not "acting in a management capacity" -- many of the companies outright lie on the visa applications. What's worse, this type of dishonesty is considered fair game when dealing with corrupt bureaucracies in India or China. But L-1s are fueling the latest wave of offshoring: they allow companies to bring people to the US at offshore prices.