Outsourcing vs technological innovation

Imagine a new software product. A super-version of TurboTax, the software asks detailed questions via the Web and can prepare sophisticated returns - not just for individuals, but even for large corporations. The cost is a fraction of what U.S. accounting firms would charge for the service. Sounds great, right? Artificial Intelligence lowers the cost of doing business. Companies can pass the savings on to consumers. Some accountants lose their jobs, but that is the inevitable price of technological progress.

Now suppose you find out the guts of the software isn't an AI engine, but rather an office full of Indian chartered accountants in Bangalore. The cost saving is still real, and the fees now go to stimulate the developing Indian economy, rather than into the pocket of a software entrepreneur.

Why is this second outsourcing scenario any worse than the first scenario?