Another important long term disadvantage is that outsourced employees are typically not hired directly but through specialist companies. This makes the Australian company dependant on an outsourcing company with it's own motivations that may not align with the Australian client.
This is especially bad in tech because the outsourced staff hold an ever increasing amount of subject matter knowledge, thus if the Australian company ditches them and goes to a competitor then the knowledge is lost (there is no motivation at all for knowledge transfer in this scenario). The loss of this information is extremely expensive and can destroy a tech company. Therefore those that choose to outsource find themselves over a barrel and at the mercy of the company who's services they are employing.
I imagine that the above is not anywhere near as serious an issue for the legal industry as it is for tech but still should be born in mind as a consequence.
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