Yep, they are all the same. Mass hire bodies off the street to meet contract commitments, who were all clearly quickly trained on one very specific skill and thrown into the blender. A very true and typical example: replacing an in-house DB admin with someone who's never turned on a computer before but completed a one-week crash course in writing basic SQL queries. Turned out as expected. The top 5% you mention is about accurate, and those were the 1/20 who (by luck maybe?) turned out to have either some real education or aptitude. The problem with them being capable, is they were always smart enough to see it, and quickly refused to settle working with the rest and accepting same wages. They would (rightfully) demand the same pay as their NA counterparts, which required immigration.
Unpopular opinion here though... I thought this outsourcing cycle was actually very beneficial and valuable. I went through many instances of it, and ended up consulting (even recommending!) "outsourcing" programs. I never lost a job to it (all I'll say is it seemed easy to shift what I did to be out of scope, as I would do with AI now). The ultimate problem was pushing through outsourcing before a company had an expertise on how to do it effectively and make it valuable.
It was seen and often implemented as a resource replacement strategy for cost savings: replace expensive onshore coder/admin/etc. with cheap offshore coder/admin/etc. Every instance of doing that at every company ever failed miserably. What some of us figured out early, and most eventually, is that it is a spectacular workload replacement strategy. Most in-house IT staff are very skilled, and without doubt most of them had huge chunks of mindless and repetitive, low-value tasks on their plate. This was huge value creation for onshore people - I'd never outsource to an Indian company ever again, but every new organization I come to and find one of my Tier 2 NOC technicians spending half his day fixing server backup errors that I could actually train one of those Indians to do in a week? Yep, he's not doing that anymore. Shift that work to a junior, or soon enough, AI. You don't fire the tech, you get him to do things much more worthy of his skill and experience. So, I "outsource" regularly now by finding masses of work I can train anyone to do, and either contract it out cheap, hire a new in-house junior employee to train using it, or pretty soon, hand it to AI.