From my perspective, what was wrong in the RBC case is that the foreign workers were brought into Canada for training using the TFW program. These workers were issued visas specifically reserved for those jobs where skilled Canadians were not available; however, in this instance, the TFW were actually replacing actual Canadians who were already in those jobs. This was a clear abuse of the system and will hopefully be stopped under the new rules. Had the workers just stayed in India, then if could have been considered simple outsourcing but obviously this did not happen.
The workers were employed by iGATE (not RBC) and came from India on intra-company transfers - they were LMO-exempt (so no, they were not issued visas reserved for those jobs where a skilled Canadian is not available). Under the proposed changes, intra-company transfers remain LMO-exempt. It is still outsourcing.
I also think another factor that has angered many of the comment posters is the jobs that foreign workers are being recruited for. For example, you can not argue that a foreign worker is required to work at Tim Horton's or some other fast food restaurant because Canadian residents do not have the skills to perform these jobs. That's ridiculous.
No one is saying that; the business owners claim that they cannot find any Canadians willing to do the low wage work. (I am skeptical too). Anyway, unskilled work permits are only available in certain labour markets.