Outsourcing: Outsourcing simply means having another company do work that is not done in house. For example a lawyer may outsource web site development to a web developer. This can be done in the same country, same state, or even same town.
Of course, when the media refers to outsourcing all that is mentioned is the out of country outsourcing , also called off-shoring.
I provide outsourcing to small businesses and once in a while large businesses through a contract or employment with another company, providing IT and web development services in the same state (both in the United States of America).
My business also uses some online outsourcing/partnering with businesses are based in the United States. Some of the companies have international operations.
Most companies do some outsourcing, since not everything can be done on their own.
This is just to clarify that there is a broader definition of the word outsourcing.