Nowadays, many companies contract their testing functionalities out to third-party IT outsourcing companies. This process referred to as test outsourcing is common in the industry, yet it is rarely studied in the research community. In this paper, to bridge the gap, we performed an empirical study on test outsourcing with 10 interviewees and 140 survey respondents. We investigated various research questions such as the types, the process, and the challenges of test outsourcing, and the differences between test outsourcing and in-house testing. We found customer satisfaction, tight project schedule, and domain unfamiliarity are the top-3 challenges faced by the testers. We also found there are substantial differences between test outsourcing and in-house testing. For example, most of the test outsourcing projects focused on functional test, and rarely did unit test. Also, due to privacy policies of client companies, test outsourcing is performed mainly on the binary distributions of the projects, and rarely the testers can touch the source code. Our findings have implications for future research. For instance, as a starting point, researchers can create automated program comprehension tools which work on binary distributions of projects to help testers better design effective test cases.