Just my .02 -
1) Asking a designer/developer to work on nothing upfront is not a good idea. #1, it's not fair and I doubt the guy who suggested this would appreciate being asked to deliver upfront work for free. Or, if he's in retail, to let his customers walk out of the store and pay later. If a company has no money from you, they have no motivation to work - I know it seems like the other way around, but that's not always the case.
2) There are pros and cons to outsourcing - I've outsourced in about 15 countries to over 60 people in the past, some results were outstanding, some results left me huddled in the fetal position wishing I'd just paid an American because I was having so many headaches with shoddy work.
3) You don't have to worry about anyone stealing your idea. I'm currently involved in a project where I had to sign an NDA just to hear the concept, then sign another contract when I actually started. Trust me, I'm not saying jack to anybody because I will get sued. 
4) Detailed specs, flow charts, sketches, and example sites are always enough to preserve a concept. Sometimes, people also find that they like suggestions and design concepts from the provider even better than their own.
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Google isn't as dumb as you think.