That's a fair thought, there should be more of in-sourcing then outsourcing.
Only issue here would be that , very few would be willing to work there at lower prices, if they get a pay of about say $50 k annually why would they do the contracting jobs.

And small business owners with offices would no way be able to afford giving it away at cheap, finally they end up importing human resource from other countries and source the work in their office itself.

So it becomes one and the same , back to step one.
you outsource or get work done in your own office yet you have to spend funds on your employees.

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