Game art outsourcing .... Basically means relocating the production of game art assets like props, characters, environment, Vehicle, weapons, animation etc to outside companies.
Nowadays more and more publishers & developers prefer outsourcing their modeling & texturing game art work to overseas studios. Such practice is widespread in countries with a highly developed economy, like USA, UK etc, India first benefited from the offshoring trend, as it has a large pool of English speaking people and technically strong manpower. India's low-cost labor has made it an offshore destination for global gaming companies. Where it will be cheaper to hand a certain work to outsource companies rather than look for a specialist for a full-time position. It reduces their cost, time etc and they can get quality work in less time with cheaper cost.
These Outsourcing companies keep your data safe through extensive physical security like studio keycard access, cameras, daily offsite server backups etc. These studios work from project to project on retainer basis or work order basis.