This slide explains the significant difference between insourcing and outsourcing. As business owners/management, it is important to understand the difference of both as one way or another, you will have to choose which of the two suits your business better.
2. Introduction
Insourcing vs Outsourcing is a common comparison in
the days when entrepreneurs abroad and employees
together with their management and supervisors
offshore have taken a liking to business process
outsourcing.
Insourcing and outsourcing can have certain pros and
cons depending on your company, the nature of your
business, the services you offer, and the nature of the
work you expect from your service providers.
3. What is Insourcing?
Insourcing is performing tasks that can be otherwise
outsourced to a service provider in-house.
This means that you hire people either through your
own HR or through an agency, and supervise them in
the physical premises.
If not, insourced employees can work in another office,
but they are within the same state or territory instead
of being offshore.
4. Examples of
Insourcing
In-house marketing team
You can hire an in-house marketing team.
Insourcing marketing and advertising efforts can lead
to a more organic and dynamic way of making
marketing decisions instead of outsourcing them
away from home.
In-house marketers are familiar with your culture and
target market and changes can be made
spontaneously if your sales and marketing staff work
under the same roof.
5. Examples of
Insourcing
In-house customer service
Maybe you run a restaurant and you do the waiting
and the cooking yourself.
You can hire an in-house customer service clerk or
attendant to help you shoulder some of these tasks.
Hiring in-house is just like a business partnership in
the sense that you may be seeing your insourced
employees every workday.
6. What is
Outsourcing?
Outsourcing is obtaining the services then of an
offshore or external organization instead of
performing them in-house.
Outsourcing can be done onshore or in the same
country.
The most common form of outsourcing thought of is
offshore outsourcing, where a company’s
management farms out a huge bulk of backend tasks
and routines remotely to another country.
7. Examples of
Outsourcing
Customer service outsourcing
Outsourced customer service is the most common
process to outsource in the call center industry.
Customer service can be voice or non-voice.
So hiring an employee offshore is a logical step for
businesses wanting to farm out these processes so
their organization can attend to more pressing,
front-facing concerns.
8. Examples of
Outsourcing
Outsourcing payroll
If you can establish a way to operate your payroll and
taxes through a remote staffing company, then payroll
outsourcing is one of the most convenient processes
to outsource since it is a repetitive task and generally
does not require personal supervision.
It requires a fixed schedule, but it can be standardized
offshore.
9. Insourcing
Advantage over
Outsourcing
Insourcing has an illusory advantage over outsourcing
because of the creative control you get from it.
In fact, if you work with the same person and she or he
is literally inches from you, that is the most hands-on
you can get when conducting your operations.
10. Outsourcing
Advantage over
Insourcing
Outsourcing is often marketed as cost-efficient.
If you outsource to a location with a lower cost of
living such as the Philippines, you can get more bang
for your buck because you pay lower and you may
obtain high-quality output from your employees.
Also Read: Benefits of Outsourcing to the Philippines