| Insourcing is doing work in- house instead of having it | | | | gains hang in a balance. For instance, we have heard |
| outsourced by a contractor. That's the book definition. | | | | of outsourcing companies asking more requirements |
| But today insourcing has embraced bringing in experts | | | | every time a contract is renewed. |
| to fill in your company's a short need. These specialists | | | | 6. You want to buck the economic crisis. With |
| may not be working for your company, but their | | | | economic recession, the risks of outsourcing have |
| expertise can be outsourced for the time being. This is | | | | increased. Then there are issues about data security, |
| where insourcing and outsourcing overlap. When an | | | | and vendors scrimping on outsourcing contracts in |
| American carmaker brings in Japanese experts to | | | | general. In IT outsourcing in particular, Gartner Inc. has |
| work on design and technology, it's insourcing on the | | | | observed that only 9% plan to outsource this year. |
| American side and outsourcing on the Japanese side. | | | | 7. You want high customer satisfaction. We know that |
| Another common insourcing practice is getting the | | | | most companies today outsource mainly for cost |
| service of your own team that specializes in one area | | | | reduction. But industry observers say outsourcing has |
| to work on a project for another department. This | | | | been battling low customer satisfaction. Insourcing |
| naturally results in savings, streamlined work, high | | | | provides constant vendor-client interaction. |
| quality assurance, and general efficiency. | | | | Boons of Outsourcing |
| We can now say that insourcing is outsourcing in | | | | But outsourcing scores high on these: |
| reverse. | | | | 1. Outsourcer and the outsourcing partner have a |
| When to Insource | | | | better relationship. The smooth relationship between |
| You know the time is ripe for insourcing when: | | | | buyer and vendor is well known in outsourcing. For one |
| 1. Your project involves production. Insourcing helps you | | | | thing, the vendor trusts the client just as much as the |
| a great deal when you don't have to travel far to | | | | client trusts the vendor. They share and exchange vital |
| oversee production. You have your team within easy | | | | data. And vendors are getting smarter-they don't limit |
| reach, and you have the upper hand over the course | | | | their services to IT along--they have gone into creative, |
| of the project. | | | | financial, back office, and engineering services. |
| 2. You don't want to expose an internal company | | | | 2. Doing non-core functions instead of the major |
| function. Insourcing has a way of keeping your | | | | functions. If you're too protective of your core |
| company's sensitive internal function safe from any | | | | company functions, then have the non-core aspect |
| vendor. Functions such as managing your human | | | | outsourced, especially those that take a long time to |
| capital and personnel benefits are better done by your | | | | finish. By having these outsourced, you can save on |
| own HRD staff. | | | | time, cost, and manpower. |
| 3. You want to work closely with your team. Your | | | | 3. Doing special and technical areas that your in-house |
| physical presence boosts up the moral of your | | | | team can't do. This won't only save you time, it will also |
| workforce. So they become productive. With you | | | | contribute to over-all high quality work. Your onsite |
| around you send a signal that you mean business. But | | | | team then can focus on their own deliverables while |
| this applies only to work that cannot be done by your | | | | an outsourced team puts its shoulder to the wheel. |
| local team. | | | | 4. Doing online business. Offshore outsourcing is still the |
| 4. You want fast results. Since you work with your | | | | top choice by the Internet business community. Online |
| team, they finish the work in due time and most times, | | | | communication is even better than real life |
| earlier than expected. This is because you have every | | | | communication, so having your online business |
| chance to keep track of the work's progress, and | | | | outsourced poses no great danger. |
| when needed, you can offer a handy comment on the | | | | 5. Outsourcing is still the most cost effective choice. |
| work in progress, | | | | Figures don't lie: practically all companies that outsource |
| 5. You want sustainable cost without great risks. | | | | swear by its cost effectiveness. Plus, outsourcing |
| Some companies that went into outsourcing are | | | | provides vendors that chance to hire more capable |
| considering going into insourcing because they can | | | | and affordable people. |
| foresee that insourcing will offer them lasting cost | | | | If you're faced with a dilemma over what to choose, |
| savings. For one thing, the outsourcing industry largely | | | | pause and think about this: You can actually get both. |
| depends on market forces (which on the local front | | | | By having a vital company function insourced and a |
| are in bad shape). You can't deny that outsourcing | | | | specialized area outsourced, you get the full benefits |
| promises big benefits at the outset, but its long term | | | | of both. |