Insourcing vs. Outsourcing: Everything You Need to Know

Insourcing is the process of using your organization's employees to accomplish a task instead of a third party, like a freelancer. Insourcing ... Marketing|2minread Insourcingvs.Outsourcing:EverythingYouNeedtoKnow WrittenbyFloriNeedle Youremployeesknowyourbusinessprocesseswell.Theyunderstandyourbrandmessagingandvisionandfeelageneralsenseofconnectednesstoyourorganization. Giventhis,manybusinesseschoosetoinsource andhaveexistingemployeesundertakenewtasksratherthanhiringfreelancersorotheragenciesthatdon’thaveanexistingconnectiontoyourbusiness. Inthispost,discoverexactlywhatinsourcingis,thebenefitsitcanbringtoyourbusiness,andexamplesofscenariosthatwouldcauseyoutousethestrategy. InsourcingDefinition Insourcingistheprocessofusingyourorganization’semployeestoaccomplishataskinsteadofathirdparty,likeafreelancer.Insourcingcansometimesrequirehiringnewtalenttocompleteataskorcreatinganentirelynewdepartment. Insourcingbringsavarietyofbenefitstocompanies,like: Havingmorecontroloverthedecisionsthatgointotasksandprojectsbecauseeverythingiskeptin-house. Existingemployeesareexperiencedwithbrandmessagingandthebrandexperience,soyoudon’thavetospendextraresourcesgettingothersuptospeed. Communicationisn’ttrickyasyoudon’tneedtoreachouttothirdparties. Youdon’tneedtosharecriticalbusinessinformationwithexternalsources. However,insourcingcanalsobecomecostlyifitrequireshiringnewtalentorcreatingnewdepartmentstoberesponsibleforspecifictasksandprojects.Employeescanalsobecomeburntoutiftheyareassignedaheavierworkloadtoaccomplishprojects,sosomebusinesseselecttouseoutsourcing. Insourcingvs.Outsourcing Insourcingandoutsourcingareopposites. Withoutsourcing,acompanyhiresanexternalthirdparty,likeapublicrelationsfirm,tocompleteatask,project,ortakeoveracontinuousfunctionforthecompany.Withinsourcing,alltasks,projects,orcontinuousprocessesaredonebyinternalemployees,evenifitmeanshiringnewtalentorcreatingnewdepartments. Acommonusecaseforoutsourcingispayrollneeds.Forexample,ifabusinessissmalleranddoesn’thavetheresourcestocreateapayrolldepartment,ornobodyonstaffistrainedinpayrollneeds,theymayoutsourcethetasktoanexperiencedpayrollfirm. Businessesmaychoosetouseoutsourcingoverinsourcingforavarietyofreasons,like: Eliminatingthecostsassociatedwithhiringnewemployees, Reducingworkloadforinternalteamstoavoidburnout, Allowingemployeestofocusoncorebusinessfunctionswhileexternalpartiescoverlesscriticaloperations, Newneedsthatariseduetoscaling. Abusinessmaychoosetouseinsourcingoveroutsourcingastheladderoftenrequireshandingoverinternalsystemsandprocessestoathirdparty,whichcanposeasignificantriskwhendealingwithsensitiveinformation,andcommunicationcansometimesbechallengingtonavigate. InsourcingExamples Let’sgooversomeexamplesofinsourcingthatmayprovideadditionalinsightintothepractice. Abusinessisscalingtodifferentterritories,butitscurrentmarketingteamsaren’tfamiliarwiththelanguageinthenewarea.So,ithiresanewteamintheterritorythatisfamiliarwiththelanguageandwillberesponsibleforcreatingmarketingstrategiesthatspeaktotheneedsofthenewaudience. Anorganizationwantstoexpanditslineofproducts,soitworkswithinternalproductteamstobrainstormnewideasandbringthemtofruitioninsteadofoutsourcingtheworktoanexternalunit.Thisensuresthatteamsworkingonnewproductshaveexpertiseoncurrentbusinesspractices,andconfidentialsystemsdon’tneedtobesharedwithoutsidesources. Afterscaling,abusinessCEOcannolongerberesponsibleforpayrollasitisamoresignificanttaskthanbefore.So,insteadofhiringanexternalpayrollfirm,thebusinesshiresnewtalentexperiencedinpayrolldutiesandcreatesanin-housepayrolldepartment. OverToYou Ifyouwantyourbusinesstoundertakenewprojectsorscalinghasrequiredyoutoneednewprocesses,considerusinginsourcingifyouroverallgoalistohaveeverythingdonein-house. Yourinternalteams,ornewlyhiredtalent,willtakeownershipofnewtasks,bringthemtofruition,andcontributetoyourbusinesssuccess.   OriginallypublishedDec15,20217:00:00AM,updatedDecember152021 Don'tforgettosharethispost! RelatedArticles ExpandOffer SocialMediaContentCalendarTemplate Getitnow Getitnow DownloadforLater