It's using the phrase "offshoring" to mean Americans losing jobs to cheaper foreign workers in general. Probably because by now everyone understands that "offshoring" == "bad".
It doesn't change the fact that the basic point (the death of American IT) is correct. If you can bring anyone in with an "Advanced STEM" degree then India will just open more schools to rubber stamp 'em. Race to the bottom.
except that's not what the law says. it's an advanced STEM degree from a U.S. institution. to qualify for the H-1B cap exemption, you have to have been awarded a degree from a U.S. higher ed institute. this drives immigrants to come to the U.S. for schooling and become invested in the U.S.
the law also requires H-1B employers to meet prevailing wage levels set by the DOL, so that U.S. workers are not undercut. enforcement has been admittedly shoddy, but has gotten much better in recent years. (the fines against Tata and Infosys being two of the better known examples).