[cpwright]

For the data entry jobs as a contract employee, I think it is actually the correct word. Outsourcing doesn't need to be on-shore, or even remote. IBM outsources its secretaries and maintenance who work in the same building as employees. This company wanted to outsource data entry and customer service.

If they are actually hiring the people (as it seems the author of the post had happen to him eventually), then it isn't outsourcing anymore.