Mom and Pop may have always been well positioned to fully embrace outsourcing, but they tend to just copy what they see big companies do without any thought. Additionally, where they do put in thought, they tend to lean “shop local” and see offshoring as a threat to their entire business.

As for those big companies, truly embracing option B has been difficult as even the C-level are typically themselves just employees, not the controlling ownership, and thus don't want to see their jobs outsourced any more than anyone else. Once the boots on the ground are offshored, you may as well offshore the management of them too. Thus there is a strong incentive for management to keep up onshore appearances and limit offshoring to small doses.