This article seems more like simply "don't be a fucking idiot".
And judging china, India, etc. is unfair. I once worked with a guy in Toronto, Canada, maybe 4 hours away from my home in New York. He ended up stealing $3,000 from me and there was nothing I could do.
So "don't outsource" isn't necessarily a good message in my opinion. A better one would be "try to avoid working with random people you've never met or heard anything about".