To Insource or Outsource? That Is the Question for Your Business

The responsibilities of every CEO or manager go beyond the top seat they occupy.

They have to maintain cultural ownership of the business and, at the same time, focus on business objectives; this shows they have busy schedules and hence the need for assistance.

The need for businesses to stay competitive and remain productive has led to the discussion: should companies outsource or insource some responsibilities to please customers?

Insource Vs. Outsource

Outsourcing is seeking the help of an external company that is not affiliated with your company to carry out some tasks for you, while insourcing is a practice performed within the company. 

Outsourcing means using a developed workforce to carry out your task; for instance, as a new company that wants to hire employees, you can outsource to an HR company because they are better equipped for the role and responsibilities.

Outsourcing gives you a chance to focus on other important things, knowing fully well that the outside company will deliver your task as promised when due.

Insourcing, on the other hand, assigns a task to a person or department within the company.

For instance, if a company has an existing employee with experience in recruitment, such a person or his department can be given the responsibility of hiring new talents for the company. 

Most companies prefer to insource rather than outsource because the existing employees know the business better than anyone from an external company. 

How To Settle For The Best Option

Understand The Risk and Opportunity That Comes With Both

As a business owner laden with the responsibilities, it is on you to decide what will work best for your business.

Insourcing and outsourcing come with different risks and opportunities, and the earlier you discover this, the better for you. 

Outsourcing comes with risks like sharing your companies information with a third party, and you never can tell.

Businesses are adapting to a new world. A recruitment company can metamorphosize into a company that deals with your type of business after being sold, and it is common for new managers to retain some employees who have vast experience.

Your confidential information and strategic plans can be used against you when you become rivals with such companies.

Also, outsourcing comes with opportunities like hiring remote employees without hassle.

If your company deals in technology, it is important you hire remote tech support from developed countries because they offer more outsourcing services, and tech support employees from such countries will have adequate knowledge of the role.

Insourcing comes with the risk of paying more for what you could get for a lesser price when you outsource.

While it comes with opportunities like not sharing your business plans and other confidential documents with third-party companies.

Also, when you insource your task, you enjoy the benefits of not reaching out to third parties as communication will be less tricky. 

Insourcing also saves your money on training.

Your employees already know how to carry out tasks in line with the company’s policy rather than wasting money on training external employees and bringing them up to your company’s speed.

Analyze The Quality and Impact

To fully understand your choice of whether to outsource or insource, you need to also study the quality of the task that will be delivered and the impact.

Outsourcing your task to an external company will definitely turn out well (if you select the right company), and you can be sure of a result of high quality.

The impact will also be great since the results will be great.

Insourcing your task will also boast of good quality because your employees know the standard of your business, and the impact will be just as great as the results.


The responsibilities of being a leader go beyond what we see on the paper.

The luxury lifestyle, super-fast cars, elegant houses, and vacations make it more enticing, but it is laden with tedious tasks that most CEOs seek a helping hand to stay focused with other important ones.

The decision of whether to outsource or insource is totally dependent on each CEO or manager after carefully studying the risks, opportunities, quality, and impact of the choice they make on their business.

Lars Brown

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