: to procure (something, such as some goods or services needed by a business or organization) from outside sources and especially from foreign or nonunion suppliers : to contract for work, jobs, etc., to be done by outside or foreign workers (https://www.merriam-webster.com/dictionary/outsource)
For example, young startups frequently outsource CFO functions to someone up the street.
To be truly pedantic, your definition doesn't say remote workers, just foreign, without specifying their region. OP talked about local workers in contrast.
Not only does the definition not say I am wrong (it includes the thing I said) but I was speaking in context of OP's comment (about location)
So you complained about my lack of precision and to do so you lost even more and didn't actually understand the context.
https://ww2.kqed.org/news/2016/01/12/startups-use-gig-econom...
Now we have some economy sectors where offshore locations don't make sense(work is service-oriented & local) and bringing foreign workers is more expensive/legally complicated than a job is worth for the company.
Thats where "gig economy" model comes in: it allows exploiting local workers for much cheaper wages, without bringing foreign labor. The outsourcing part is what work there was(regular food delivery jobs) made into granular contracts and "gigs"/"tasks", which divide the labor into independent segments(e.g. deliveries) where task distributed into local labor pool(as some kind of cloud computing with the humans being servers).
[1] https://en.wikipedia.org/wiki/Outsourcing - "In business, outsourcing involves the contracting out of a business process (e.g. payroll processing, claims processing) and operational, and/or non-core functions (e.g. manufacturing, facility management, call center support) to another party."