Insourcing

DEFINITION of 'Insourcing'

Assigning a project to a person or department within the company instead of hiring an outside person or company to do the work. While outsourcing is commonly thought of as a way for companies to save money, it is sometimes more cost effective to have the work done in-house.

BREAKING DOWN 'Insourcing'

In the United States, insourcing can also refer to the use of U.S.-based subsidiaries by foreign multinational corporations. These insourcing companies contribute to research and development, capital investment, exports and job creation. So, while outsourcing is often looked upon as a negative effect of globalization that sends U.S. jobs abroad to countries with cheaper labor, outsourcing actually works both ways because it also sends jobs to the United States from foreign countries.



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RELATED FAQS
  1. What's the difference between outsourcing and insourcing?

    Discover that costs, resources, control and location are some of the major differences for an organization when deciding ... Read Answer >>
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    Understand the benefits of outsourcing internationally and locally for business. Learn why many businesses choose to outsource ... Read Answer >>
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