I think very many people are confusing H1B and straight outsourcing of talent. While there is some overlap, they are not nearly the same.

Ive worked with both, and very few of the H1bs were below average. Otherwise they aren't worth sponsoring.

There was a time in the mid 2000s when the Infosys/TCS/wiPros of the world were gaming the H1B to bring offshore bodies onshore.. but most of that died off as far as I see.