Bringing IT Back In-House? Watch Out for 6 Pitfalls

Senior Associate Murali Sunkara examines key ways to leverage insourcing opportunities while mitigating risks in this contributed article. Sample excerpts: “What insourcing is: a way to assume greater control, become more agile, better align with strategic business initiatives, build a core capability, maybe realize cost or efficiency benefits. What it is not: a wholesale coup, where IT summarily shifts capabilities to in-house employees. Before any move, consider the full range of business objectives and benefits, not just costs. I worked with a healthcare organization that had completely outsourced IT a decade ago and recently decided to insource application development and maintenance, while leaving IT infrastructure with a provider. The decision was driven by two primary factors that outweighed the higher cost sometimes associated with insourcing: accelerating time to market and increasing innovation, both critical to remaining an industry leader…While insourcing can deliver these benefits, there are risks, mainly around rebadging (hiring people who were in the employ of the outsourcer but working on your project) and setting up a detailed timeline…”