How to Transition from Outsourcing to Insourcing

As big corporations begin to make staff and budget adjustments in this difficult economy, many have chosen to create in-house teams to provide services they had previously outsourced. Because the tasks are so diverse, from a customer service call center to an information technology team, the transition from outsourcing to insourcing can be difficult. Sourcing advisory company Alsbridgerecommends six key steps in making the most efficient switch.


1. Make sure your company has the proper transition management oversight. Establish a solid strategy to bring your in-house team from its starting point to steady operation; these periods typically last from six months to a year. A key decision during this time is when to best create the supervisory body that will oversee the entire transition.


2. Review the provider contracts your company may already have and determine when you can legally terminate those partnerships. Ensure the providers are aware that your company is ending the contract in order to recreate those services in-house, rather than giving them over to a new provider. That way, you can preserve the relationship in case of future need.


3. Evaluate your existing Human Resources department and make any necessary changes to streamline its efficiency, preparing the staffing team to recruit suitable candidates for the new positions.


4. Stemming from the third step, take the time to define the new roles your company will create. Whether you are hiring for 50 or 500 jobs, the task will need more oversight and involvement than the Human Resources department can provide. Alsbridge recommends you consult a sourcing advisory service firm to offer information on job roles and responsibilities.


5. Following the completion of these job descriptions, the next step is to find the most suitable candidates for the roles. As a leader within the company, ask yourself some important questions. For example, do you plan to grandfather your provider’s personnel into the company, or do you intend to replace them with new employees? If you decide to fill all of the roles with current in-house staff instead, are they fully prepared for their new responsibilities?


6. The last step in creating a successful changeover from outsourcing to insourcing is one you must maintain throughout the entire process: regularly staying in touch with all of your company’s stakeholders. As investors in your organization, stakeholders deserve to be involved in every element of your transition, as they may be able to provide valuable advice in addition to financial support.


While shifting your company’s services is a complex and arduous process, ensuring that it is completed successfully will serve as an investment in your company’s future. Learn more about making the switch at

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