Outsourcing usually means hiring cheap, low-quality third-party labor and firing/not hiring skilled, trained full-time employees. Whether this is from another country or not is unrelated.

The situation described in the article has nothing to do with outsourcing, but building a remote team, both foreign and domestic.

Using the term "outsourcing" does a disservice to those employees. Since the Midwest was mentioned specifically, I had a similar reaction to the one you had for my comment.