Yes, the ballasts are outside of the housing, just like the OEM ballasts would be. The Kensun HID bulbs come with a Grommet that the wires are already run through. You have to drill a 1" hole in the round cap that goes to the low beam bulb, slide the bulb through, then seat the grommet to plug the hole you just made. Very clean install.
I don't have a photo of my exact headlight, but it's basically identical to this:
