Think of it this way.
in terms of GBP for simplicity sake.
Worker in uk gets paid £6 an hour.
Worker in china 60p an hour.
Outsource due to massive saving.
Uk tries to compete drops to £4 an hour.
China still at 60p an hour.
Is that going to stop the jobs been outsourced? unlikely.
What would stop it however is taxing outsourcing or making it illegal. However that would be illegal in itself with eu countries and probably damage trade with others
What can hope for is large inflation in likes of india and china so the gap gets closed and somehow deflation to occur here. Unlikely whilst interest rates are pegged down tho.
Thinking about this in the bigger picture the plan was probably more than about saving money, I expect various large companies considered the uk and usa saturated markets, so they deliberatly started a policy of shifting wealth to poorer countries which opens up new markets once the people there get wealthy enough to buy products.
In terms of unemployment I agree increasing it doesnt add wealth, so ask the tories why sacking people is helping the economy as they the ones increasing unemployment deliberatly. Their impatience has led to bad decisions, they should have waited for a recovery and the private sector to pick up (to prove their point) then to start shrinking the public sector.