Insourcing

Insourcing is the commencement of performing a business function that could be contracted out internally: either with the help of a third-party provider who performs the task on-site, or by conducting said task independently. Very often it is seen as opposite of outsourcing. Insourcing is a business decision that is often made to maintain control of critical production or competencies. Insourcing is widely used in production to reduce costs of taxes, labor and transportation.

Insourcing is also defined as bringing a third party outsourcer to work inside a company's facility. For example, an IT outsourcing provider may be hired to service a company's IT department while working inside the company's facilities. In addition to contracting an entire team of workers from an outsourcing provider, outside experts are sometimes hired as consultants (to improve certain processes etc.) and the internal staff thereafter implements their recommendations. It may also refer to bringing in foreign nationals to do jobs at lower wages. An example would be a coal mine which lists a foreign language(i.e. Mandarin Chinese) as a job prerequisite that citizens tend not to study. Since the labour pool does not have the listed skill a foreign worker permit can be obtained allowing the importation of Chinese workers.