From Bangalore to Boston: The trend of bringing IT back in-house

From Bangalore to Boston: The trend of bringing IT back in-house


April 2013

The last two decades have seen a phenomenal rise in the outsourcing of Information Technology (IT) to external service providers. The driver for this trend has largely been economic, since outsourcers often offer more competitive price points for the same services at comparable services levels. Beyond cost savings, companies also use outsourcing to drive their IT strategy - the choice of focusing on core, strategic competencies and relying on a network of external service providers to perform less strategic functions. Inn recent years we have witnessed a small but growing reversal of this trend where companies that have previously outsourced functions are brining them back in-house. This rend is generally referred to as "insourcing".

Keywords: Outsourcing, Insourcing, Service Delivery, IT, Cost, Customer Service, Controls, Vendor

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