Until what I think is fairly recently, the word "outsourcing" meant that Company A hires Company B to do some jobs that used to be done in-house, which usually meant some jobs were cut at Company A. However, in recent weeks, as political pressure in the U.S. has mounted regarding companies hiring people in other countries to do desk jobs that had previously been done by U.S. employees, the meaning of "outsourcing" seems to have been shifting in some contexts to refer to this practice instead, even when the offshore jobs were regular employment at our Company A rather than being jobs at Company B instead. I've seen this in political commentary in major newspapers, and even AUE's John Dean used "outsourcing" in this sense on March 24 of this year.
My perception of how this has happened is that it went something like this: some of the offshore hiring was in fact outsourcing in the traditional sense, and business columns in newspapers referred to this as "offshore outsourcing" while referring to the general practice of hiring abroad as "offshoring" or "offshore hiring"; but then the politics reporters and columnists, always happy to pick up on a new buzzword (and having possibly forgotten about the other meaning of "outsourcing"?), started dropping the word "offshore" and using "outsourcing" instead; then readers who hadn't much been exposed to the word "outsourcing" started using it solely in the new sense. I could be mistaken about this progression, but this was how it seemed to me to be happening in the past few months.
I've been trying in my own tiny way to encourage the use of "offshoring" (which I've seen in the Washington Post and NY Times, among other places) in cases where people absolutely insist on having a single word to refer to moving jobs offshore, because I don't much like the idea of "outsourcing" having two meanings that don't necessarily overlap, but I have a feeling this'll be another of those squirtgun-vs.-raging-inferno things.
William Safire's column Sunday dealt with the word "outsourcing", but he didn't make any explicit reference to the seeming evolution in meaning:
http://www.iht.com/cgi-bin/generic.cgi?template=articleprint.tmplh&ArticleId=511298JM