Yes this is the thing, they just want to pay less and make sure the onsite guys work overtime for free with the fear of getting offshored/fired. This wont work well with the Americans. This has nothing to do with racism.
There's many other countries they could have hired from, and the article states discrimination occurred at all levels of hierarchy in the company, which strongly implies it was not limited to H1B employees.
As an Indian working in one of these companies, they treat employees different depending on where they come from. You get better treatment if you are an American. The next level is those who were hired from USA. At the bottom is the h1b folks who come from India. Managers and HE will treat them as disposables and will have no problem showing them that. You have a problem, go back to India. I have seen first hand this difference in treatment multiple times.