Well, outsourcing can also be a company looking to get away from having to hassle with hiring/firing/HR/Benefits and everything related to being the employer, to just paying an outside company a flat rate every year to provide the staff. Often in that case, laid off employees are hired by the outside contractor since they already know the job.
Applying for jobs now can be a huge hassle. My wife hired back on for a temporary project with her old employer after retiring over 2 years ago. The company uses INDEED for the applications and it wanted information that was impossible to provide. She worked over 40 years for this employer, and all her previous employers were out of business, and any supervisors she had not seen in 45 years, or were deceased. But corporate required applicants to go through this process, however she did notice that her job offer letter was dated BEFORE she had submitted her INDEED application or did an interview!
Ive been on both sides of this for many years. My first tech job was outsourced from one of the big players and eventually they moved that oversees. Ive also been at a place that outsourced medical billing oversees as well as a place that outsourced development and\or parts of development oversees.
Unfortunately these days much of the outsourcing seems to be overseas so its usually not an option - especially in tech and no doubt something like billing - its just a lot cheaper.
Yeah sometimes they do outsource to the middle of the country, but those are the exceptions IMO, and not everyone wants to move to the middle of the country - its a big ask.
We actually did something like that - and then a year later all those people were released and stuck - so plan accordingly.
As for the hassle etc - I agree that is a plus, but they pay for it in many ways - first financial as they probably have to pay enough for the outsourcing companies to cover its benefits and more important is company loyalty.
In an outsourcing companies they are loyal to that company and not us - I've run into this many times.
A big issue in tech is communication and understanding. More often than not things have to be done over or refactored because they did not fully understand the issue and they pretty much ignore the spec.
Even for countries where for all intense and purposes they are native English speakers.
I've even had full times people who are originally from those countries and they get frustrated with the contractors.
In addition they often don't have the power over them they have with a full time employee. They wont stay late or come in early or do a weekend - unless they are paid - and even then its like pulling teeth. A full time employee getting well compensated knows that will happen on occasion.
Its a big headache, but when they can hire 5 to 1 in country X its worth it to them.
In the past I've seen it get pulled back - but not so much recently - it does come down to the bottom line and keeping the company from failing in many cases.
As long as the C Suite has their jobs and golden parachutes they are good with it.
I do sort of laugh at the HR folks who don't consider it - but they are probably next - less employees need less HR folks..