Are You Ready for Insourcing?

Outsourcing has always made for heated politics, as politicians typically equate “outsourcing” with “offshoring.” Ross Perot’s much ballyhooed “giant sucking sound” made for great living room drama in the 1992 presidential debates centering on the North American Free Trade Agreement, and outsourcing again made it to the forefront of the 2012 presidential contest. However, as it pertains to changing behaviors from more outsourcing to more in-house service delivery (i.e., insourcing or repatriation of certain functions), political rhetoric provides no more than trivial incentive to companies that are focused on cutting costs and improving margins. Moreover, the pace of policy change that could meaningfully affect the outsourcing/offshoring rubric - such as trade agreements, tax incentives, and immigration/visa regulations - is, in a word, glacial.

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