Child I located in outbuilding (5)
I believe the answer is:
bairn
'child' is the definition.
(Scottish and northern English term for a child)
'i located in outbuilding' is the wordplay.
'located in' is an insertion indicator.
'outbuilding' becomes 'barn' (I've seen this before).
'i' inserted inside 'barn' is 'BAIRN'.
(Other definitions for bairn that I've seen before include "A Scottish child?" , "Northern child" , "little one in Yorkshire" , "Wee child" , "Scots child" .)