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What is Insourcing
Insourcing is a term that refers either to the opposite of outsourcing, i.e. inclusion (integration) of originally outsourced services (see outsourcing), processes and activities back into the organization or to somebody else’s process integration to their own activities in order to streamline the related processes.

Insourcing is a term that refers either to the opposite of outsourcing, i.e. inclusion (integration) of originally outsourced services (see outsourcing), processes and activities back into the organization or to somebody else’s process integration to their own activities in order to streamline the related processes.

Use of the insourcing in practice: Insourcing may result in lower transaction costs, complex coordination with an external supplier, safety or other reasons. Another reason for insourcing can be strategic reasons (e.g. a competitive advantage in the future). As an example might be a situation when a growing company decides to hire its own accountant, because it will keep him/her fully occupied, instead of keeping a service purchased from the accounting firm.

The opposite term is an outsourcing. Choosing advantages of external or internal security is part of service management and process management.

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Last update: 15.08.2016

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