It may be a bit much however to try and tackle offshore outsourcing and outsourcing in general in the same post.

Also in reference to your comment that “no third person or company can understand the product better than the owner”, I understand your point, however keep in mind that many owners do not know everything about their product or how best to market it.

Take for example any episode of the American Chopper TV show where the Orange County Chopper guys make a different custom motorcycle each show. If you have ever seen it you could not help but notice that on every episode you can find them using / outsourcing some aspect of the build. Typically the outsourcing is done to a chrome or paint shop and in that type of example I think most would agree the shop owners were making the right call to make their product the best it could be without having to hire a full time specialist for those jobs.

So at times local outsourcing has become an extension of the specialization of labor principal and many firms can and do benefit by outsourcing specific jobs to specialized local talent.