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Outsourcing is Out! Insourcing is In! But What is Insourcing?

A new trend is emerging inside companies. The hot topic of outsourcing (sending work outside the company to be completed) is now changing by bringing the focus back to the company. Insourcing, a term used to describe work being done either in-house or through local subsidiaries, rather than sending those jobs overseas, is making its way into the corporate world.

Some companies have switched to insourcing because they have become discouraged with outsourcing. Management issues can arise when time differences, language, and geographical distance require extra manpower or resources.

Insourcing allows a company a greater ability to encourage innovations from within. The benefits are cost savings, standardizing processes, streamlining projects and reporting, and gaining efficiency.

But there are some questions that come up when a company decides to insource. Can you cross-train employees to perform work that was previously done by an outside supplier? Can an investment be made in equipment or technology that would enable more tasks to be completed in-house?

Companies that invest in the development of their staff gain employee loyalty. This shows in many ways—low turnover rate, and growth in revenues and hiring. Hiring costs are reduced, advertising costs may be reduced, and fewer customers go elsewhere.

Existing customers may do more business with companies that insource, because of the professional service they receive. Referrals from existing customers who have appreciated the services or products offered is another benefit.

If a corporate culture is created in which everyone involved with a customer goes above and beyond to insure that the customer’s experience is exceptional, the long-term results will reflect the company’s commitment to excellence.

Once you create that exceptional experience, your customers will do the rest. They’ll spread the word. Exceptional experiences are few and far between in our fast-paced world, and everyone appreciates quality service and a promise kept.

One of our favorite sayings at Quill has been “Work Smarter, Not Harder.” We continually look inside our organization for ways to improve every process and procedure. What has your company done to improve its processes?