From Bangalore to Boston: The Trend of Bringing IT Back In-House
Outsourcing Information Technology (IT) to external service providers has risen exponentially over the last two decades. Because outsourcers often offer more competitive price points for the same services at comparable service levels, the driver for this trend has largely been economic. Beyond cost savings, companies also use outsourcing to drive their IT strategy.
However, in recent years we have witnessed a small but growing reversal of this trend in which companies that have previously outsourced functions are bringing them back in-house. This trend is generally referred to as “insourcing”. Though insourcing is a small trend compared to global outsourcing, given the maturity of the outsourcing industry we are seeing more and more organizations wrestling with the question of whether an outsourcing deal which is not meeting expectations should be re-tendered or insourced
Although most organizations still prefer to fix broken deals by either renegotiating with the incumbent provider or re-tendering the work, insourcing is being considered a viable option when the business case and business drivers make sense. In this point-of-view, we examine:
- Insourcing drivers
- Challenges of moving to an insourced model
- Selecting the right insourced organizational model
To learn more, download the complete whitepaper, “From Bangalore to Boston: The trend of bringing IT back in-house,” from the top of this page.
As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.