While I think the whole thing sucks, here's the problem:
TRU isn't bringing in H1-B workers.....they're hiring TCS to replace a department for cheaper. Done. End of TRUs involvement with choosing the replacement workers.
TCS is using H1-Bs to bring in people skilled in job shadowing as part of the outsourcing contract.
TCS is then using Indian labor to fulfill the contract because those workers are cheaper and can NOW do the same job, thanks to the job shadowers.
Had TRU picked a different outsourcing firm, that firm would have still brought in people to learn the processes and the TRU people would have lost their jobs (or potentially been transferred to the outsourcing firm --- that used to be a fairly common condition of outsourcing).
So, who's to blame? TCS if anyone. Could they have found some non-Indian people qualified to do the job shadowing (the skill the H1-Bs were hired for)?