Insourcing is the cessation by a company of contracting a business function and the commencement of performing it internally. Insourcing is the opposite of outsourcing.

Inscource-outscource

Outsourcing is associated with working on distance and it has its benefits and disadvantages. Working on distance requires discipline which can be directed by clear processes which fits to tools for communication. It can be controlled by delivered results via KPI’s. This way you will get a more data driven approach then you can reach with a local team where direct contact often driven by emotions are more leading then results.

The key for success for outsourcing is structure. In my more then 15 years of experience with outsourcing to Poland and Belarus we developed the People-Process-Tools approach. We build our own tools where the process is included and which has even a predictive analytic functionality included. A good alternative for outsourcing, is insourcing with an own team (for example in Poland). Multinationals like ING, HP, Dell, IBM, GSK, Volkswagen and many more found there way with insourcing to Poland already. It is a good indicator that it is profitable and efficient.

One of the disadvantages for middle sized companies is that it is often expensive to setup and manage an own people abroad. Inexperience will take a lot of time to learn the best way to inscource. Besides time it cost a lot of money and frustration. Often you hear the stories that it doesn’t bring what was expected.

A solution for this is use a company that is experienced with in- and outscourcing. It knows the culture of the country, it is experienced with the processes and build their own tools to communicate and monitor the projects. Within such a company you hire your own people within your own legal entity but all the services around you buy from the company that provides the services. You can think about services like recruitment, interim management but also legal services and providing of office space.

If you inscource to Poland you have benefit that it is close to Western European and Nordic countries. You can use the good aspects of local culture and there are many (European) subsidies available. And probably the most important is the very well educated and highly motivated young people that love to get foreign experience.

Leave a Reply

Your email address will not be published.