INSOURCING VS OUTSOURCING

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BENEFITS OF INSOURCING VS OUTSOURCING

We live in a disposable world, where we can get what we want when and where we want it and more and more businesses are outsourcing traditional business functions and roles such as payroll, IT, graphic design, call centre work. By outsourcing you can pay for specialists to run specific functions of your business without the overhead of internal staff departments, training and technology costs.

While outsourcing functions of your business can seem very appealing for many reasons there are a number of benefits to insourcing your business requirements as opposed to outsourcing.

  1. Less risk. When keeping services in house you have clear visibility of hours being worked, project outcomes and ability to control risk with a mitigation strategy, whereas with outsourced servicing you are reliant on another organisation and carry a large risk of damage to your brand services.
  2. Better visibility of the services provided. Take for example an outsourced call centre. While outsourcing services such as these oversees may be a cheaper option with larger volume, there is a lot less vision of how your calls are being answered, what is said and the impression your customers are getting. If your call centre is locally based you can implement the management and supervision of employees to ensure the quality of the customer service your organisation strives for is bring correctly represented at all times.
  3. Culture. When your hire internally you can be sure that the core values of your organisation are understood and carried out, especially for customer facing roles. The people that work for you already understand the business, and how it operates. You are also showing employees confidence in their ability and opportunities to up skill and advance their career, which can provide a higher reward for your organisation longer term and keeping company and staff morale levels closer together.
  4. Quality control. By keeping services in-house you have clear visibility of the works, people and communication allowing for a much higher level of quality control throughout the process from start to finish.
  5. Time frame for delivery. Outsourced services and projects traditionally come with much longer time frames for completion than insourced projects which can be completed within a shorter time frame.
  6. Risk of losing intellectual property. When outsourcing business tasks, it can be easy to inadvertently hand over, or let another organisation create IP on behalf of your business, which runs the risk of who owns it shall the business relationship cease for any reason. For example, when you outsource graphic design services the brand elements may remain property of the designer, not your business.

With so many benefits to an insourcing model it is evident why so many large organisations throughout Australia and the US have readopted this model.

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