As a former software engineer (stay-at-home-mom now), he's right.
Great engineers are being outsourced to lower paying engineers. It's the engineers that are older, well-educated, and have high saleries that are getting outsourced.
That's the way it worked, even before outsourcing. If you're working in a non-management position in a corporation in your 50's, you are fair game. There comes a point where it's just cheaper to hire two young kids than to keep the old guy (even with his "legacy" knowledge) who has been given perfunctary raises for 10 years.
It's not fair, it's not right, but that's the way it works.