Woman CEO looks out the window over a city as she thinks about what the best solution for her is.

As companies grow and become more strategic about how to handle certain business processes, it can be expected that the discussion between insourcing and outsourcing will come up. Both are viable methods of directing necessary tasks to skillful workers, but your chosen approach will largely depend on your business’s goals.  

Have to decide which method is appropriate for your organization’s needs? Take a look at what insourcing and outsourcing means as well as their pros and cons.

The Differences Between Insourcing and Outsourcing

Both insourcing and outsourcing can help companies achieve goals, but they utilize different approaches to get there. Having a clear understanding of what each process means and how they differ will better help you make the right decision for your business.

  • Insourcing is the process of having an employee(s) or a specific department created by your company that completes tasks or takes care of a specific business process internally. 
  • Outsourcing is the process of having an external Business Process Outsourcing (BPO) partner completely take over and manage your business processes. 

To make the best choice for your organization, it’s worth looking at the pros and cons. What works for your competitors may not be what your company needs. Use the guidelines below to make an informed choice.

What Insourcing Can Do for Your Company

Insourcing taps into an organization’s existing resources to perform tasks and meet goals. Rather than bringing in somebody new or from the outside, you’re assigning projects to a person or department within your company. Insourcing may also create new departments with existing team members.

This is an excellent option for business leaders looking to maintain more control over the process, set guidelines, and have more flexibility when it comes to customization. However, it’s worth noting that insourcing can be more expensive in the long run and does not allow scalability to be as accessible. Costs associated with recruiting, hiring, training, and equipment have to be accounted for, and the more your organization grows, the more the costs will accumulate.

What Outsourcing Can Do for Your Company

Outsourcing brings in expert talent and guidance from an external BPO provider. It’s a cost-effective approach that allows businesses to focus on core competencies while allowing providers with expert-level knowledge to handle certain processes. Some other attractive features include accessible scalability and the fact that costs associated with recruiting, hiring, training, and equipment are taken care of. 

Additionally, BPO partners can improve your customer service, provide various language options, and can often be managed on-shore, near-shore, off-shore, on-site, or through a blend of locations depending on your needs.

Regardless of the services your organization is after, choosing the right partner is crucial to any business process model. The right BPO provider can ensure your organization reduces costs, maximizes efficiency, and achieves business goals through outsourcing.   

Partner with DATAMARK’s BPO Experts

DATAMARK has provided business process outsourcing solutions for companies across various industries since 1989. When it comes to BPO relationships, DATAMARK seeks to be a long-term strategic partner that will continuously analyze and identify areas that can be re-engineered and improved within your business processes. 

DATAMARK’s team of experts will help you overcome obstacles and outline the right outsourcing solutions for your organization’s unique needs. Help your company reach the next level by letting DATAMARK handle your back-office processes. Learn more about our business process outsourcing services or contact our outsourcing specialists.