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Things to Consider in Insourcing

by: Sarah Joson

Monday, October 21, 2013 |

Tips for Insourcing

Business owners have many reasons why they outsource certain processes of their company. Some do it to reduce costs, while others see that they lack the required skills and resources to get the job done.

However, over the past few years, a growing number of enterprises and small business were seen transferring processes. Reasons for this can be: business agility, stricter quality standards, and overhead costs from outsourcing.

Info.ISG-One.com shares important things that businesses should focus on before they launch a full-blown insourcing campaign.
 
Know the legal clauses. Some companies overlook the provisions in their current/expiring contract that can hold them legally liable. The clauses that business owners should really watch out for are the exact duration of the contract, intellectual property concerns, and tools, among others.

Consider your financial position. Business executives must see to it that their company is doing well money-wise because a business will be easily derailed if they fail to consider some factors that can affect their financial stability. These factors are: transition expenses as well as costs of performing due diligence, designing a strategy, and other requirements.

Make sure that the company is ready for the transition.
Some companies outsource an entire department to a service provider. They must first acquire all the necessary tools and manpower to make the proper transition.

Design a new organizational structure.
If a company decides to pursue insourcing, executives should consider that not all insourcing strategies can be easily modified according to the current structure of the organization. Executives should review the management, communications plan, and scalability of the entire company to maximize the insourcing operation and avoid risks at the same time.
 
Make estimates for the actual transition. A detailed transition plan will be useful to address challenges related to people, processes, technology, and knowledge transfer. Metrics should also be used to gauge the progress of even the smallest detail of the transition.

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