Sunday, March 20, 2016

Learn The Difference Between Insourcing And Outsourcing

Insourcing and Outsourcing are more heard these days than before,

making laymen wonder how, what, way to differentiate both for better

understanding.

Insourcing and outsourcing are opposite each other; while insourcing

is an insider project, outsourcing is an outsider project. It is the

bringing of a third party outsourcer to work inside a company's

facility as means of reducing production costs, taxes, labor and

transportation. It is a business decision that is often made to

maintain control of critical production or competencies.



On the other hand, outsourcing is a business management strategy of

handing a certain department of a company or firm to a an external

professional agent or organisation that specialises in such aspect. An

instance is Airtel Nigeria Customer Care Call Department is

outsourced.

Outsourcing sometimes involves transferring employees and assets from

one firm to another, but not always. Outsourcing is also the practice

of handing over control of public services to for-profit corporations.

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