Outsourcing Vs Insourcing: for Better or for Worse?

Outsourcing vs Insourcing for Better or for Worse

What is Outsourcing?

Outsourcing is referred to as delegating the tasks that are not the core business of a company to other companies that have expertise on the same. Normally work is always outsourced to an offshore outsourcing company because of the highly profitable rates such companies provide.

What is Insourcing?

Insourcing is actually quite similar to outsourcing except for the fact that outsourced work stays within the country itself. When another company handles work outsourced from a company and both these companies are located in the same country, it is called insourcing.

Both of these are basically delegation of work to experts, it’s is just the “where” factor that differentiates insourcing from outsourcing. Major debates can be found with regards to what should be preferred – outsourcing or insourcing? Obama has urged all major corporates who seek offshore outsourcing services to bring back outsourced jobs to America. In a recent interview, he has quoted “I’m calling on those businesses that haven’t brought jobs back home to take this opportunity to get the American people back to work, That’s how we’ll rebuild an economy where hard work pays off and responsibility is rewarded – and a nation where those values live on.”.

The Boons and Banes of Outsourcing and Insourcing

  • An offshore outsourcing company always has the expertise and offers a very cost-efficient solution for major entrepreneurs. Insourcing can also promise quality but at a higher price altogether.
  • Insourcing promises jobs to the people of the same country from where the company is from, but that would lead to a major dip in the profit margins for various companies as setting up infrastructure and getting manpower drains resources.
  • Outsourcing would mean loss of control for a company to a certain extent because of the various external government bodies and cultural differences that have to be dealt with. Insourcing on the other hand gives a company much more control over all the aspects of the company as every part of the company follows the same jurisdiction.


  1. Insourcing of low wage immigrants are perceived as worse than outsourcing in that American workers are not helped in either case, even in their own country.


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