Insourcing can drive competitive advantage

4 March 2015

Bringing services back in-house can help create a more agile supply chain, increase reputational value and protect quality of service and product.

The cover feature in the latest edition of Supply Business highlighted that while outsourcing is far from on the wane, the growing benefits of retaining services in-house are reflected by a “small but growing” drift towards insourcing.

A global survey conducted by Deloitte in 2012, 48 per cent of respondents reported terminating an outsourcing agreement “for cause or convenience”. Of those, 34 per cent chose so bring that work back in-house.

But while there may be advantages from insourcing, there is a danger businesses are moving to this model for the wrong reasons - such as a mishandled outsourcing contract - rather than the organisation’s genuine ability to perform a superior service in-house.

The full article, including how to move towards an insourcing model, is available to subscribers in the latest edition of Supply Business - out now.

Supply Business is an international supply review published quarterly aimed at CPOs and senior executives with an interest in procurement and supply operations. The magazine and online access is available on subscription. To subscribe click here or call +44 (0)20 7880 7618.

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