insourcingInsourcing is a business practice in which work that would otherwise have been contracted out is performed in house. The practice is of special interest to workers and corporations in the United States, where outsourcing is often regarded as an increasing problem. Insourcing often involves bringing in specialists to fill temporary needs onsite. In another type of insourcing, an enterprise purchases new equipment or trains existing personnel to perform tasks that would otherwise have been outsourced. This type of insourcing may require considerable training of existing personnel for the tasks. An example is the use of in-house engineers to write technical manuals for equipment they have designed, rather than sending the work to an outside technical writing firm. In this example, the engineers might have to take technical writing courses at a local college, university, or trade school before being able to complete the task successfully. In another meaning of the term, insourcing is outsourcing as seen from the opposite side. For example, a company based in Japan might open a plant in the United States for the purpose of employing American workers to manufacture Japanese products. From the Japanese perspective this is outsourcing, but from the American angle it constitutes insourcing. Nissan, a Japanese automobile manufacturer, has in fact done this.
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| Last updated on:
May 09, 2006 |
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