How do locals benefit from job outsourcing?

Some locals benfit and some don't.

Benefits:

New jobs that are created to manage the outsourcing arrangement. Jobs like engineering the products specifications, process development, quality controls. Other jobs are purchasing/supplier management to develop contracts and manage costs. Quality engineering folks to insure that the product or service is up to snuff.

Non-Benefits

Some jobs disappear. Typically low skilled labor and semi-skilled blue collar work. These are replaced because this work costs less when done by the outsourcer. This is a primary benefit. Many of these jobs are union based and hourly costs have risen above the value created by this work making them uncompetitive in a global marketplace.

These people need to be retrained to do work that is required to manage outsourcing or to change careers into other low skilled positions.

The problem occurs when people do not invest in themselves through continuous learning, education and personal development. Their skills become obsolete.

A sad commentary but the reality in todays world.

They don't really. But all the consumers of the particular product produced or service offered benefit by cheaper prices.

They can't and they don't... but they are gullible enough to believe the politicians who tell them what a wonderful thing is it to send their jobs overseas.

They don't.