In your home when your television has some small problem and you call an electrician for repairing it than it is a case of outsourcing as you have called an outside person for doing the job, however, if you repair the television than it is a case of insourcing as you do not need the help of anyone from outside. In the case of a corporate world similar thing happens where companies either take the help of outside agencies for completion of a technical task or take the help of workers working within the company for doing a technical task. In order to understand both concepts, one should look at some of the differences between outsourcing and insourcing –
Outsourcing VS Insourcing
Meaning
Outsourcing refers to that practice by which company assigns a project or work to outside part which is not related to the company in any way whereas insourcing refers to that practice by which company assigns a project or work to a person or department within the company rather than giving that project to the third party.
Completion of Work
In case of outsourcing since work is assigned to those parties or companies who specialize in that work which results in improvement in the efficiency of work as these parties due to their knowledge and expertise are able to complete the work in quicker time but as far as insourcing is concerned since company assign work to those people who have knowledge but not expertise of work it results in them taking more time and hence completion of work or project takes time.
Training
In case of outsourcing company does not have to worry about giving training regarding the work as it is the responsibility of the company to which the work is outsourced but as far as insourcing is concerned company has to give training as well as support to the workers or department to whom work is insourced.
Security
In case of outsourcing since work is outsourced to outside parties there is always that risk that they may use as well as leak the data and information of the company which poses a security concern for the company but as far as insourcing is concerned there is no such risk as the work is given to the employees of the company who are more reliable and less likely to misuse the information as compared to the employees of the outside companies.
Confidence Factor
In case of outsourcing companies by giving work to outside parties creates a environment where employees of the company starts to feel insecure and low on confidence as employees start thinking that eventually they will lose their job because of outsourcing but as far as insourcing is concerned it creates a sense of loyalty and confidence in the minds of the employees as in their minds they start to think company is giving chance to prove their worth by assigning tasks based on employees technical knowledge.
As one can see from the above that there are many differences between the two and that is the reason why any company thinking of either outsourcing or insourcing for particular work should first read the above points and then decide which is better for completion of work as far as the company is concerned.