Outsourcing vs In-house Activities

Many multinational companies have certain optional services which can be done either in-house or outsourced. The choice is little tricky as both have advantages as well disadvantages. Some companies prefer to get everything done in-house, while others want to be tension free and like to outsource. The following points will help in determining which method is more useful and feasible for the entrepreneurs.


As the word says it all, under this method you can simply assign the task to some 3rd party and get the work done without any headaches attached. This is the easier option for companies who do not wish to invest on infrastructure, employee benefits, operating costs etc. The 3rd party takes care of everything and there is least risk involved in this activity.

Although the amount of outsourcing has increased tremendously over the past decade, there are some companies who are little concerned about the security of data. Outsourcing activity is not free from all the risks. If you are considering outsourcing the work, there are 1 or 2 hurdles on the way. The companies are worried about the data security which is in the hands of 3rd party. There have been cases where the 3rd party has made use of data without permission and knowledge of the client.

The main advantage of outsourcing is that it is cost effective. By outsourcing a task, you don’t have to spend on the staff, infrastructure etc thus saving lots of money. Here, you’ll only be paying for the service utilized from the 3rd party. Moreover, the resources are dedicated to a particular project thus ensuring maximum and best output.

In-house activity

This method is most useful for small and medium sized companies who are happy to hire staff for getting the work done. Since, the profit margin could be really low, the companies don’t prefer to outsource their tasks and get it done in-house. There are various advantages associated with it too.

With the resources working within the same premises, there is no risk of data being leaked out. The data is more secure and reliable within the closed doors. The other advantage here is, with the resource being in the same premises, any doubts can be clarified as & when they arise thus saving lots of time.

There could be delay factor attached with this method because the in-house resources are not fully dedicated to a particular project as they have multiple works to attend.

As explained above, both the methods have advantages and disadvantages. Choose the one that suits your business requirement.



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