Does 外地人 include those who were born outside but grew up inside?
Different people may take this differently. Based on my observation, from a traditional Shanghainese perspective, the criteria of 上海本地人 are: 


户口 is registered in Shanghai. 
Live in Shanghai starting from the very early ages. 
Able to communicate in Shanghai dialect. 
Understand the tradition of Shanghai. 
Your parents are Shanghainese (this criteria may not be that strict. )


It sounds bias, but that's the reality I think.