What is insourcing?

Insourcing is the practice of internalizing certain business functions or services that were previously outsourced to a third-party service provider. It involves shifting work back to employees within the company instead of outsourcing it to external vendors or contractors.

Insourcing can be done for several reasons, including cost savings, better quality control, improved communication and coordination, and strategic advantage. For example, a company may decide to insource its IT support services to gain greater control over security, reliability, and customization of the technology infrastructure.

Insourcing can also provide opportunities for improving employee skills, utilization, and job satisfaction. By bringing back work into the organization, employees can gain new skills, engage in different types of work, and have a sense of ownership and contribution to the organization's success.

In summary, insourcing is a strategic decision that can help companies gain greater control, reduce costs, and improve quality in their business operations.