Definition: Insourcing is the transfer of business processes from third parties inside the own firm. It is the opposite of outsourcing, or one might say it is outsourcing seen from the other side (party).
Some "outsourcing firms" are specialized in insourcing certain activities from other firms, acting as an external Shared Services Center for their clients. Typically they specialize in one type of processes, such as accounting, facility management, human resources, IT, logistics, payroll, purchasing, and security.
Two special strategic forms of insourcing are vertical integration and horizontal integration.


More on outsourcing: Business Outsourcing, Co-sourcing, Service Level Agreement, Shared Services Center, Transition Management.


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