Apples and Oranges comparisson.
If you RTFA you'll see that in a company he was working in, they found out that the actual cost of doing development in India was 30% of doing it in the US and in India they did using a (much less flexible) hierarchical fashion rather than using processes like Scrum, so the return on investment of outsourcing to India was actually negative for them.
His point is that this is a problem with management in India, not with the capabilities of their dev people.
Furthermore, he points at the case of a Dutch company that manages to successfully work with distributed development in The Netherlands and India and that their secret is that they first create and train the teams together in Holland and them send half the team to India but have them continue to work together as a team. Essentially they export a Dutch style of management and teamwork to India and it works!
Yet another point was that a race to the bottom in costs will always be won by developing countries and that the advantage that developed countries have is in their proximity and intimate knowledge of the markets where their products are sold and thus their ability in developing products that are better suited to the needs of developed country consumers. This competitive advantage is not being exploited by most managers of developed world companies whose management practices are almost entirelly focused on cost-cutting rather than know-your-customer.
He points at Apple as an example of a company that is being successful by being customer focused.
This is quite orthogonal to automation since automathons are not exactly affected by management styles, are owned by the company (rather than being an external company you outsource to) and are hardly going to fund their own company using what they learned from their customers.