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Our Blog

15
Jul

OUT or IN?: The Pros and Cons of Outsourcing and Insourcing

A fragile-defined goal and objective may result in misperception –out or in? What is the best approach for your company?

For about four years of outsourcing, we, Web Outsourcing Gateway, proved that Outsourcing is an effective cost-saving strategy for many business owners. By outsourcing portions of working operations and labor tasks to an outside BPO company, clients can save time and have affordable services rather than completing their projects internally.

On the other hand, other companies are using Insourcing. Not like Outsourcing, instead of hiring an outside company or person to do the project, they are assigning it to the person or department within their company. Some people can say that insourcing is more expensive than outsourcing because you will do the work all by the company; but sometimes, it just depend on the cost of the project.

Based on the aforementioned differences between Insourcing and Outsourcing, here are the questions that you need to answer within yourself and your company to pick up what is best for you:

  • •   How will you evaluate your company’s needs?
  • •   How can and what will you choose between the two?
  • •   What kind of approach that fits to the line of your business?

To break the chain of confusion, these pros and cons will help you and your company to choose what to use and what does it takes to be “Out or In”?

INSOURCING:

Pros

  • •  You can completely control the workload and you can manage the people performing it by giving clear instructions directly to them.
  • •  You have an internal accountability to your workers.
  • •  You have personal contact to your workers, so you can communicate with them directly when there are things you want to settle.
  • •  You can develop interaction and cooperation among different departments and workers.

Cons

  • •  You need more money and resources.
  • •  You need to hire in-office workers for a certain project and it can be extremely expensive.
  • •  You need your own equipment and other necessities that you need to provide for your workers.
  • •  You need to monitor the project 24/7 and it may be expensive and time consuming.

OUTSOURCING:

Pros

  • •  It is typically cheaper than insourcing because you can save money and time by transferring portions of workload to an outside company or person.
  • •  You can contact skilled people globally.
  • •  Your work can be executed at an inferior discount.
  • •  You can focus on your core business while other functions and workload are handled elsewhere.

Cons

  • •  You cannot completely control the quality of work.
  • •  You can possibly spend lots of money when fixing substandard work.
  • •  Your company is lack of interaction among different departments and workers.

CONCLUSION:

Deciding which approach is the best for your company is a crucial part. However, regardless whether you choose to insource or to outsource your project, having quality workers and superior services are still the most vital scenario. Just weigh in the pros and cons of Insourcing and Outsourcing, and see what will work best for your company.

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