I see that the Chicago outfit seems to recruit guys from selective local street gangs they use them as farm teams.

Does NY do the same?

Yes. The Luccheses used the Tanglewoid Boys,the Colombos the wimpy boy,the Gambinos the ozone park boys and the Bonannos the bath avenue boys. Only that in NY are farm teams not really independent gangs.

Furio, the gangs the Outfit recruits from are organized by the Higher Ups who these kids will be eventually working alongside of once they become made one day or high level associates. Same applies for New York I see.

Since when Rushstreet? All those Chicago gangs that have had some members join the mafia have been around for decades. They were never organized by the mafia or beholden to them. Some guys had connections to them some became members most didn't.