Outsourcing versus Offshoring

Antoin O Lachtnain clarifies greatly something I was always a little befuddled about - the difference between outsourcing and offshoring -

"Outsourcing is not the same as offshoring, where work is done abroad rather than in the home country. Outsourcing does not depend on driving down costs for it to be successful. In fact, there could be an increase in costs and the outsourcing would still be considered successful. Offshoring, on the other hand, is almost always about cost."