November 13, 2014
In an effort to decrease costs and streamline processes, many companies are looking to outsourcing technology needs. Some are also looking at insourcing. The ability to use resources when you need them without the overhead costs of having a department within the company is incredibly efficient. It also allows a company to receive a level of skill it may not be able to acquire on its own.
Outsourcing vs. Insourcing
Outsourcing is using a company or supplier outside of a traditional business model to complete a project or ongoing need. In the past, it was stereotypically associated with telemarketing or technical support teams. Now, many companies utilize outsourcing to create an efficient business model effective for both the internal team and customers.
Insourcing works a little differently, and the concept has not been around as long. Insourcing involves working closely with and using the company’s own resources to get a job done. It’s most relevant in project-specific tasks, like designing a new website or marketing.
Many companies will use a combination of outsourcing and insourcing depending on the need of the project or goal.
Outsourcing and insourcing are complementary practices. The rise in insourcing is allowing companies to feel more like the insourcing partner is part of the company. Sometimes, insourced employees will work on location alongside regular staff. Insourcing is normally more local, which means the employees will understand not only the work but also the target market or client base. Outsourcing may fulfill a void for internal business processes, which does not necessarily require the cultural intelligence an insourcing partner almost always provides.
The Right Choice for Your Business
When your company is considering in- or outsourcing, the prospective partners should have a record available of who they have worked with and what kind of services they provided in the past. References should be available for your company to find out more information about their customer service and quality.
Aligning business goals is important if you foresee a long-term partnership. Culture compatibility should also be considered for any arrangements. Ensuring employees will work well together will create a more efficient environment on all levels. Finally, financial stability should be transparent to guarantee the outsourcing or insourcing company will meet your company’s standards and expectations.
Thanks for reading,
Rob Connary, President - COO
