Yeah, this was a raytraced scene, so those particular shadows are from a scene, where raytracing is enabled (because the original question was about a raytraced scene).
In a normal non-raytracing scene, you have to go into your light, and enable “Distant field Shadows”. That will give you soft shadows too, not as perfect as raytraced shadows, but probably more accessible, because not everyone have a graphics card with raytrace support 
Indirect lighting should have nothing to do with hardness or softness of the shadows (and in my video, its at default 1 too), it´s for making bounce light more intense than it would normally be. So it should be global illumination related.