In December, 2010 the The Department of Justice recommended that Congress re-write H1-b law, requiring companies to seek local talent first and "to hire any equally or better qualified US workers who apply."
In this letter, they stated they were concerned that "US workers...have been impermissibly replaced by H1-b visa holders and identify employers who may be engaged in a pattern or practice of discrimination against US workers."
"It is hard to believe, but it is perfectly legal to use the H -1B visa program for outsourcing. A foreign outsourcing company with a U.S. office can use H -1B visas to import workers from their home country, train the workers in the United States, and then outsource them back to their home country to populate businesses competing with the United States."