What's sad is that in the long run, it doesn't save money, it destroys the "institutional knowledge" in the company, and it ruins the morale of those that are left.
Case in point, I worked for a small company, was the senior IT guy in small shop. Thought that would protect me, but I was wrong. I was outsourced in a one-for-one swap with an Indian H1B. Me, who designed most of the company's systems and operated them for 7 years, for some temp. Cheaper? Sure. Better at the job? Well....
Except that it didn't work. They brought in a 2nd H1b, and a third, fourth, and finally a fifth. 5 people to replace little old me. No idea what it cost, but it most certainly was more than I had been paid.
I'm not arrogant enough to claim that I could do the work of 5 men - the reality was that one of them was a decent engineer, three were mediocre placeholders, and the fifth was worthless, and carried by the other four. But all of them got paid, I'm sure.
Long story short, company ditched the idea after about a year, offered me my job back (ahahahaha!! that was a GOOD day), and wound up hiring another middle-aged white guy from the next town over - at a salary 2x mine (the company's controller and I are good friends). After 2-3 years, things started to settle back down and the IT team resumed its productivity again....
...Until the NEXT management seagull comes in and says, "Hey! I've got an idea as to how we can save money! This H1B agency that bought me a great golf weekend said..."
There's the reality of it all.
To his excellent comments I will add this:
Not one damn more H1B visa until all America's military veterans have 100% employment. The foreigners have continued ZERO to protecting and defending our country.