To Offset Outline on a face, click on face and drag to create offset. Note, if Insert is ON in Tool Options then the offset shape is inserted into the face allowing for subsequent reshaping operations.
To Offset Outline on a line, click on line and drag to create offset. Note, if you exceed the minimum radius of arcs or curves while offsetting then the radius converges to a single point at that location. Also, note the Insert option has no effect when offsetting lines.