He's referring to cheap labor and cheap code written by people who don't care and who are managed by a chain of people with a different set of goals, values and national loyalties.
The plan for world domination by M$ has always been about building up countries to save $. Especially one in particular with 3-4x the "human resources" that allow themselves to be mined at a fraction of the price that still gives them a better life.
I think it's bad form to call everyone who disagrees with offshored work a racist. Moving the entry level jobs away from the US has created this situation and that stereotype. You are denying the very real problem by saying it's a racist/xenophobic stereotype. Like all stereotypes, there's roots in reality.
The technology industry there has been growing since the US started giving away it's entry level tech jobs and the training that comes with it. The enormous scamming industry is a direct result of the rejects from the call centers. Those call center rejects see their friends and neighbors succeed but can't hack it in that environment but they too want their pieces of pie. They are useless to M$ (and the like) but even though they failed there, they picked up skills that make them valuable to criminals.
Same shit happens in the US, it's how people who suck at their jobs generally continue to get hired. Nothing wrong with discussion about it just because it's happening to another country.
Maybe we should stop letting companies become oligopolies through antitrust allowing them to dictate whole global markets and have more money than the governments of many entire nations.