My wife just went through a similar situation- outsourced and rehired. It's amazing how short-sighted corporations can be.I didn't realize I have an update to this thread.
I was with a large accounting firm in the Internal Communications Department (video production and editing) for 25 years until we were booted in favor of an overseas external agency in April of 2017.
I was able to freelance for a year handling smaller projects that might have otherwise fallen through the cracks. But nothing was an annual thing that I could count on with any regularity.
The second year, I was able to latch on to a different creative department who was getting a lot of the internal work from the people who didn't want to deal with the overseas external agency. It was a contractor position which paid extremely well, but no benefits were included. At that same time I was able to purchase some of the leftover production equipment from the department that was killed off which I installed in my basement office and allowed me to work from home. I was able to maintain a flexible schedule which was awesome, and also take on other projects such as the end of season highlights video for the local high school football team.
The work I was turning out caught the attention of the higher ups in this other Creative Department and I was able to convince them to bring me back full-time with benefits and everything. I started back last Monday.
While these last two years won't count, I was able to maintain my 25 full-time years of service and pick back up where I left off. I also didn't have to settle for a lower salary compared to the rest of this market. While it's lower than I was making as a contractor, it's equivalent to where I would have been if I was never let go and received two years of annual raises.
I know my situation is rare, but once in a while things actually turn around for the better.