I don't believe that my education and experience is comparable to that which would be received in prison, which makes me think there wouldn't be much direct competition to me. If anything, something like this would seems (likely to me) to result in the massive, lower skilled end, of tech work being sent to prisons or half-way houses inside the U.S. as opposed to being shipped outside the U.S. This seems like a good thing.
I've worked on numerous projects that were shipped outside the country, to MUCH cheaper labor rate places. That tends not to work out very well, unless the project is extremely well spec'd, and/or requires very basic skills, and a very strong relationship exists between the buyer and seller. Typically, I become involved when the project has failed, and the customer decides that dealing with someone with greater skills that lives in a higher wage place is a better investment.
I am grateful for the fact that different options exist. Most projects that I could view as "competition" with low waged workers are not the types of projects I'd like to be involved with. The person shipping the project out typically has no long term relationship with the outside entity, is EXTREMELY price conscientious, is unable to clearly state what they want, and has very limited abilities to evaluate the quality of what they receive. These are people I do not want to deal with, until they have decided that they want to spend some serious money and change their viewpoints.
For me, it is a good thing that purchasers of goods and services have an option VASTLY different than what I'd like to sell. It allows them to segment themselves, and not come to me until they are the types of purchasers that I'd like to deal with. I would waste a lot of time dealing with the lower end of the market if these release valves didn't exist.
Throughout this response, I've tried to make it clear that these ideas only represent my viewpoint : I do not consider what low wage / low skilled people to be selling to be competition. I have never wanted to compete at the bottom, and I recommend that anyone involved with ./ not compete with prisoners, or outsourcing companies.