Welcome to the IT lifestyle. Technology enables wonderful things like telecommuting, but then managers start wondering "instead of paying Bob $100k to telecommute across town, I can pay 3 people to telecommute from India."
Of course there's always language/cultural/time zone issues that complicate things, and the massive savings that are initially promised by outsourcing never materialize because of the extra management effort involved.
Some larger companies have started getting a little more clever though. Instead of outsourcing to a firm on the other side of the world, they just open a branch office on the other side of the world and hire their own people. It's mostly the same effect, but they get a higher level of control.
Of course, you can just as easily outsource to another firm in your own country, too. It's just that the cost savings aren't as obvious. But if you are a software company based in Seattle, San Jose, or Austin, it's expensive to hire workers. If you can open a branch office in Iowa (or outsource to Iowa) you can get the same work for a much lower wage. It's still not as cheap as shipping the work to Bangalore, but you'll get people who speak the same language, share similar culture, and the time zone difference is only a couple of hours.
The company I work for deals with a lot of larger companies that like to outsource their development jobs to companies overseas. In order to compete with those, we instituted a new development group with a different model that is intended to compete with offshoring. It offers a much lower cost than traditional on-shore development that keeps us very competitive with offshoring firms. We still get the business and keep the jobs, they're just not quite as high paying as they were before.
It's a rough world. I personally prefer working in an infrastructure role because it is very difficult to outsource your infrastructure work to another country. Also, you can move towards more specialized skills that are harder to commoditize (SAP consultants make a ton of money, for example).
Of course, you may be referring to the UK equivalent of the H1B system here in the states, which allows companies to sponser workers from other countries to come to the USA and work for that company due to an alleged shortage of IT skills. From what I understand, that's not going on quite as much as it used to. For one, there are a ton of unemployed IT people in the states, so it's harder to justify a claim of unique skills.
________________________________________
CompTIA A+, Network+, Server+, Security+
MCTS:Hyper-V
MCTS:System Center Virtual Machine Manager
MCSE:Security 2003
MCITP:Enterprise Administrator