Goodbye Outsourcing, Hello Insourcing: A Trend Rises

Partner David Rutchik is the primary resource in this article regarding the increasing trend of companies choosing to bring outsourced work back in-house. Sample excerpts: “Rutchik says he has seen insourcing decisions gaining steam within the last year and expects that trend to continue to increase in 2011. ‘Companies are still outsourcing significant projects and transactions,’ he says. ‘But they are strategically assessing subsets of broader outsourcing relationships and determining whether to pursue a best-of-breed provider approach or take it back in-house completely’…Among the reasons IT leaders cite for pulling the plug on outsourcing deals—or subsets of their contracts—are poor service quality, failure to meet business objectives, and the desired for more control over the future direction of the IT function, according to Rutchik. ‘Another reason is that some companies were working with more generalist outsourcing providers who had been managing areas outside their core competencies,’ Rutchik says. ‘In some cases the results were less than stellar.’"