Firms Must Balance Insourcing and Outsourcing, Claims Report

With the increased interest in offshore business process outsourcing (BPO), enterprises need to examine the benefits from offshore insourcing to determine the right mix of offshore delivery options for them, according to research firm Gartner. A large number of companies prefer to maintain or retain control by ‘insourcing’ their back office functions and business processes and by setting up their own captive shared service centers, said Gartner, adding that enterprises wary of control and data security issues can benefit from the offshore advantage of ‘insourcing’ offshore. ‘The rewards and risks of offshore BPO are just beginning to be understood,’ said Sujay Chohan, research vice president for Gartner. ‘As enterprises and service providers evolve, it has become clear that there is no right model for a given company. Instead, enterprises will use parts of a model or a combination of models as they begin to explore and iron out the issues around sending business processes offshore,’ added Chohan. ‘No enterprise will fully insource or outsource offshore. Most will use a combination of delivery models as they climb the learning curve to BPO.’

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