How do you feel about onsite outsourcing of nonrevenue/adminstrative/support functions?

Roger,

Pros: If you need less than a full person, or need a variety of partials, this can be an easy solution.
If you needs tend to change, it can be cost effective.
There is less employee risk with contractors.

Cons:
One person can often serve several roles, and bring knowledge from one role to another. An outsourced person typically won't do this.
Cost: right now the cost differential is muted due to the high unemployment rate. However, normally you'd expect to pay a premium for this.

And....onsite vs. offsite? I prefer onsite as I value the interactions. It costs a chair/cube/office, plus often requires a more fixed schedule. If the role is easily encapsulated, then I'm indifferent and don't mind having it offsite.

My opinion -There is no problem with outsourcing, onsite or off-site. It is a valuable approach to any business, until it makes economic sense to bring the service in-house. Identify your needs, find a vendor, establish a contract, and monitor adherence to the contract. Set a target, i.e. "If I begin to use this outside service for Accounting that equals $50,000/year, I should bring the resource in house." This last part is very important.