IT outsourcing VS insourcing

Outsourcing or insourcing? More and more companies have this question nowadays. You can consult on this question here We will try to understand the fundamental differences between these two approaches and find out when it is better to use outsourcing and when insourcing.

IT outsourcing has become popular not so recently. Almost all companies use it in their activities. Among the advantages of outsourcing are the following facts.

Available for businesses of different sizes

Outsourcing IT companies can afford both very small young business projects and large corporations. This is very convenient, as the company can regulate financing. A flexible system makes outsourcing affordable even for beginning business projects that have the ability to handle various complex business processes at minimal cost.

Huge selection of contractors

Now a large number of outsourcing IT companies are working and many of them are an excellent choice if you need to transfer part of the business tasks. But among such companies there are a lot of young and inexperienced, so the choice of outsourcing company should be treated carefully. You should be even more careful if you are going to hire freelancers to perform certain duties. Among these guys there are some high-level specialists, but most are only trying to take the first steps in freelancing and cannot boast of high performance. Cost of their services will be cheaper but such savings can have negative consequences for the company. It will be better to work with proven outsourcing companies.

 It is convenient

Outsourcing allows you to put on important processes of specialists, while there is no need to pay for their regular work as a separate department of the company. Their services can be used only when there is such a need. In addition, these specialists already have everything they need to complete the task. You do not need to think about picking up the right tools and additional programs.

Currently, outsourcing is very popular among businessmen. It is difficult to find a serious company that can work without this tool as it is able to open new opportunities.

Insourcing, however, began to be mentioned more often not so long ago. It has some fundamental differences from outsourcing. In essence, this is the creation of a subsidiary company that will perform a number of functions of the main company, which it constantly needs.

If we consider insourcing in practice, then several important details should be noted.

  • Insourcing makes sense only for large corporations. There is no sense for small and even medium-sized businesses to open a subsidiary in order to cope with part of the company’s functions. The value of insourcing is stable and cannot change depending on the direct need. So only large companies can be really interested in it.
  • The ability to grow high-level specialists who will be directly related to the company’s activities and can be as useful as possible for it.
  • Additional asset. If the company is large and insourcing makes sense, then by creating a subsidiary organization, the company gets the opportunity to transfer to it a number of tasks that it constantly faces. Thus, there is no need to constantly use the services of outsourcers, and the quality of the work of an insourse can be much higher. In addition, such a company can always be sold if there is a need to get instant finances

Choosing IT outsourcing vs insourcing can only be relevant for large companies that are really able to start the insourcing process and make it ultimately profitable for themselves. Insourcing was not originally intended for mass use. That is why outsourcing still ranks first in terms of frequency of use.