Your definition of outsourcing is not correct - outsourcing means transferring business processes and operational/corporate functions to a third part company. The third party company selects the preferred way of completing the work required, sometimes it required sending work off shore, sometimes it stays in the country. I've worked for few large technology companies who compete in the outsourcing space and many times we kept work at the same premises and we'd keep some of the same resources (who would keep doing the same things but the name on their paycheck would stay the same). This is a very simplified scenario though, but outsourcing does not inherently imply off-shoring (or bringing offshore resources here in the country). I hope this clarification helps...
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