Insourcing vs. Outsourcing: What’s the Difference?
When businesses evaluate their staffing solutions, some of them look into employment models like insourcing and outsourcing — however, the latter is a more popular choice for many businesses.
Both are fantastic options to consider when you want to start ramping up your business efforts, but it’s worth getting into the details of both to find out which one is more applicable to your enterprise.
Outsourcing is a cost-efficient model that helps companies scale their business according to their goals. The most common outsourced professionals include IT consultants, customer service agents, and marketing specialists. You do not have to train anyone to upskill, because it is expected that you’re welcoming experts into your fold. If one of your goals is to build an offshore company, this will be your obvious choice.
Insourcing, on the other hand, is looking for talent from within your organization to rise to higher-level tasks as you deem fit. The advantage of using this model is you’re already familiar with your team. Since you are going to handpick talent from within your organization, such individuals are expected to be more comfortable working with you — plus, they already have prior knowledge of your company’s brand.
While there’s no wrong way to build your team, as mentioned earlier, you may favor one style over the other. If you’re having trouble choosing which staffing solution is better for your business, you can take a look at infographics below for reference. Here, you will know the differences between insourcing and outsourcing as well as the pros and cons of each model.