A much better solution is something like the hire act.
Also, how would it differentiate between outsourcing and SAAS?
A _better_ solution would be to remove the H1-B cap and continue to skim the best graduates worldwide. Same with removing the green card quotas. Make sure if someone gets an H1-B, they can transition to a green card and then to citizenship.
That's always been the US's super power.
Keep the density of innovation in the USA by inviting people in.