Many companies from time to time will outsource some of their specific duties and functions to other companies because it becomes cost effective to do so. Now it would appear that some companies are turning to insourcing as another way to cut costs and expenses. What exactly is insourcing? Sometimes an organization will need to have specific duties and functions completed and they don’t have anyone on board to take care of those particular duties. A lot of organizations will take the time and spend the necessary funds to train certain employees that are currently on the payroll to take care of those new tasks.
This works out to be cheaper than hiring new employees and creating a new position to get those functions and tasks handled. If they are looking the employees who they target to handle these specific duties may not need any training. The skills are already a part of their repertoire which makes this a better deal.
I have seen this type of thing take place within certain financial institutions. Most organizations have some type of in house collection staff, which are those individuals who make calls to past due debtors. Occasionally the credit department will need credit correspondents to take incoming calls from their distributors who submit credit applications. They will train the collection staff to handle these types of credit calls which takes the burden off management of having to hire new employees to handle the credit applications.
Now insourcing can take another form as well. Sometimes a job or duty is of such a nature, such as being technical, that the only alternative is to bring in an individual from the outside that helps to train other employees on these new job duties. The person coming in is a temporary person and as part of their job duties they may have to train new employees on various procedures, techniques or even how to use certain equipment. This type of arrangement is also considered insourcing.
An example of this would be a company bringing in an individual on a temporary basis to train the current staff with the use of some computer security measures designed to help protect the company’s computer system. This temporary employee has an expertise in this particular field and it would be far more advantageous to insource than hire someone. Insourcing is a term that is just now becoming popular with a lot of different companies and it is likely to gain more recognition as time goes on.
More and more companies are looking for ways to save money especially due to the downturn we are experiencing with the economy. Insourcing is one way for companies and organizations to meet their goals and objectives within this particular area.