(Up to: Economics Society Is ATechnology Thing )

Offshore: adj. Pronunciation Key (ôfshôr)

Located or based in a foreign country and not subject to tax laws: offshore bank accounts; offshore investments.

Outsource: tr.v. Pronunciation Key (outsôrs)

To send out (work, for example) to an outside provider or manufacturer in order to cut costs.

There's a subtle difference between the two, and indeed they can be combined. It's a growing trend though.

See also this discussion at ThoughtStorms. And this Wired article, "The New Face of the Silicon Age."