what is insourcing?
Insourcing is when businesses make permanent hires to their team as opposed to outsourcing tasks to external organisations.
This hiring model is rising in popularity as it offers several benefits over outsourcing. Below, we'll look at these benefits alongside some examples and frequently asked questions.
what are the benefits of insourcing?
Here are some common reasons why businesses are choosing insourcing over outsourcing:
it gives you complete control
The biggest problem with outsourcing is that you have little control over work quality and the professionals involved with outsourced work.
This can cause serious problems, especially if your future depends on a single project.
This is where insourcing can help. Insourcing gives you oversight into every work process, making it easy to spot bottlenecks and areas for improvement.
it's cheaper in the long term
Although outsourcing is a more affordable option for small businesses on a budget, insourcing can often be cheaper long term if you're part of a large organisation.
This is because the knowledge shared within your team compounds over time, resulting in projects being completed quicker and more efficiently. This increased productivity and engagement saves thousands of pounds.
your employees share your values
Outsourcing can harm the relationship between teams within your organisation as third-party solutions have different organisational and work structures.
Fortunately, insourced professionals are part of your organisation and share the same values and work habits as the rest of your team.
communication and project delivery is more effective
Because you're working with your own employees and not outside professionals, you improve communication and increase the likelihood of meeting project delivery deadlines.
You can rely on your in-house team, their skill sets, and organisational knowledge to address the cons of outsourcing.
Here are some common insourcing examples:
- Let's say your organisation is expanding worldwide, and you're starting to sell to new markets. The only problem is these audiences don't speak English, and your marketing team doesn't understand the local language. With insourcing, you could hire a local marketing team, and your two teams can work together to create effective ad campaigns.
- Suppose your organisation is focusing on product development. You're looking to brainstorm new ideas, but you don't want to recruit an external team that may sell your ideas to the competition. So you hire a few creative individuals, make them sign a confidentiality clause and get started on brainstorming.
- After you've scaled your organisation, one of the first things you'll want to delegate is payroll and accounting since it's repetitive and tedious. But instead of hiring and onboarding freelancers and external teams, which may pose a financial risk, you hire insourced accountants to manage all the numbers.
Before applying the insourcing model to your business processes, consider the following drawbacks:
it's impractical for small businesses
The most obvious issue with insourcing is that it's impractical for startups unless you have significant financial backing.
For example, if you're hiring a full-time software developer, you need to commit to a full time salary. But with outsourcing, all you have to do is visit a freelancing website, and you can hire a developer for a few hours per week.
it's hard to find top talent on short notice
Insourcing also presents challenges when an employee quits, and you need someone immediately. The average hiring time is around 24 days and if you rush this process, it’s easy to make a mistake and hire the wrong candidate.
it's time sensitive
Hiring requires a lot of time investment, which can be challenging if you're an entrepreneur juggling multiple roles. You'll have to learn how to source the best employees and convince them to join your brand.
But with an outsourcing model, you spend more time on tasks that are directly related to sales figures, making it popular among startups. These tasks could be marketing, sales, or product development.
is insourcing better than outsourcing?
Insourcing and outsourcing each have their own advantages and limitations.
Outsourcing is a better option if you're an entrepreneur looking to delegate annoying and repetitive tasks that aren't essential for business success. It's cheaper in the short term, and you won't have to struggle with sourcing, hiring, onboarding, and retaining employees.
But insourcing is for you if you're a larger organisation that needs professionals to work on projects that are essential to overall business success. You'll have more control over important tasks, and your team can develop skills to help them complete quality work faster.
insourcing made easy with hireful.
If you’re used to outsourcing, insourcing may seem intimidating because you’ll have to source, interview, hire, and onboard your own employees. However, this is rewarding when done right as you’ll build a team from the ground up and have full control over projects.
So if you want to upgrade from outsourcing to insourcing, consider an applicant tracking system like hireful. It allows you to attract and onboard top talent, taking your business to the next level. Sign up for a free hireful trial today!