Award winning souring and benchmarking firm, Alsbridge, Inc., today announced a new report revealing the pros and cons of bringing your IT services back in-house.
Over the past few years, and especially since the start of the Great Recession, the concept of “insourcing,” or bringing work back into the US from offshore, has received extensive media coverage. The concept has a strong emotional appeal, especially when there are so many out of work within our own country. This new report from Alsbridge explores the strength of the insourcing trend and how an organization would go about insourcing their IT services.
According to the report, Alsbridge has not seen a broad shift from outsourcing to insourcing. Few companies are exploring a full insource as part of their sourcing strategy evaluation, although for some it is a reasonable alternative worth considering. More prevalent is a trend towards “selective” insourcing, where a portion of an IT outsourcing agreement is brought back in house because of cost concerns, delivery concerns, changes in business conditions, business risk, or a combination of several of these. Because of the smaller scope and higher focus, these insourcing opportunities tend to be highly cost effective while limiting risk and reducing the amount of disruption required get back to steady state operations. Also, some companies pursue a selective insource merely as a step towards multi-sourcing, and for certain reasons do not want to directly transition services from one provider to another.
“The decision to insource should not be taken lightly. It is hard work!,” said Ben Trowbridge, CEO of Alsbridge, Inc. “Insourcing some or even all of your IT operations may be the right choice, but there are many factors to consider before you conclude that it is the best alternative. If insourcing is indeed the best alternative for your organization, you will need to determine how to get out of your current agreement, how to build the new team and IT capacity you’ll need to deliver the service internally, and how to successfully execute a transition plan to move to the new model. ”
Due to the complexity and importance of making this type of decision, many clients choose to invest in the services of an advisory firm to define a sourcing strategy aligned to business objectives, and then to help them successfully plan and execute the transition to the new model.
Read full report from Alsbridge, Inc.
About Alsbridge Inc.
Alsbridge provides world class sourcing advisory and benchmarking services for the CIO, CFO and CPO. We’ve helped hundreds of companies reduce costs and get more value from their vendors. Our experienced consultants leverage proprietary tools and information databases to identify and engage the optimal vendors for your situation, negotiate best practice terms at fair market prices, and improve the way you work with your vendors. Alsbridge clients utilize the most cost effective and value added sources globally for IT infrastructure services, hardware and maintenance, network services, software and maintenance, application support and development, business processes and cloud services. Alsbridge was ranked the #1 outsourcing advisor in the world by the International Association of Outsourcing Professionals (IAOP) based on the value delivered to clients. This commitment to delivering value to our clients has made Alsbridge a distinguished member of the 2010 Inc. 500 fastest growing privately held companies in America.