Insourcing
Under insourcing , Backsourcing or restocking means the reintegration of previously outsourced processes and functions ( outsourcing ) in the company.
Insourcing reduces the dependency on external suppliers , since larger parts of the overall production process are carried out in-house. This increases the reliability of the planning, and the required quality can be more easily guaranteed.
A variant of insourcing occurs when workers whose jobs have been lost due to rationalization continue to be employed instead of being laid off by bringing back parts of the production that were previously external to the company.
Further reasons for insourcing can be:
- The calculated savings potential for a previous outsourcing does not apply (anymore).
- Changed initial situations (size of the company, business model adjustments) have changed the framework conditions.
- The dependency on the outsourcing company is to be reduced.
- The loss of know-how in the outsourced corporate area leads to risks in corporate management .
In the context of economic theory, higher inflation tends to be viewed as promoting insourcing, since companies are more cautious with regard to their willingness to enter into contractual obligations towards other companies.
Insourcing continues to refer to the assumption of a previously external service in one's own business activity.
The relocation of company divisions that have been outsourced abroad to the home location is also defined by insourcing. In this case, it could be a German company, for example, which is relocating its production department back to Germany and thus insourcing.
The STOQ-K method is an analysis tool that determines which type of sourcing should be used individually in a company or an area of the IT environment. In addition to answering the question of whether insourcing or outsourcing should be carried out, it also makes it possible to determine whether optimization or a change promises greater success or is advisable.
