Insourcing
When organisations decide to bring a process or capability back in-house, this may be due to a change in overall sourcing strategy or recognition that a current outsource arrangement no longer meets the business needs in terms of service, performance or cost. However, there is often more to insourcing than people think in the "let's bring it in-house" statement. Suppliers, staffing and unions, skills, service standards, sub-contracts, legal and commercial matters are all aspects that must be carefully managed.
The decisions, challenges and risks involved are not to be taken lightly and an insource should be managed as a proper business change.
Project One's approach to insourcing focuses on the factors that will reduce risk to your business and increase the probability of achieving the outcomes you intend, for example:
- Clarifying the case for change so that you are confident that this is the right thing to do
- Understanding the impact on the overall business operation
- Managing the expectations of people directly impacted, who may fear an uncertain future, and people who are dependent on the service within the business
- Ensuring the right balance of skills and capacity to deliver the insourced service
- Planning and managing the transition path, getting the business ready for insourcing and maintaining required service standards during the transition period
- Working with suppliers to maximise their involvement during the transition period, at a time when their inclination might be otherwise
- Managing the novation and transfer of sub-contacts
- Managing the performance of the insourced service and the realisation of the planned benefits
From a business perspective, insourcing an operation may seem straightforward. With the right direction and leadership, it can provide the opportunity to improve performance in an area that is critical to your business.
