From Outsourcing to Insourcing

A few short years ago, outsourcing was all the rage. Companies big and small were outsourcing many of their key functions, anticipating savings of millions of dollars. Now, the scene has changed. Some of those same companies are now bringing those services home again, to save millions of dollars. So what has changed in the intervening years. Several things, including a growing need to be able to respond strategically to change. A need to economize. A need for more control.

Insourcing is not simply reversing the outsourcing that was previously implemented. There are different issues. For example, the skilled staff that the company had before the original outsourcing deal may well be working for the oursourcer and may be less than keen on moving back. They may even be disgruntled ex-employees to deal with.

For a good summary of the pros and cons of outsourcing vs insourcing, see this link.