Insourcing, Remote - Insourcing, Outstaffing: what makes business sense

Before we start figuring out what’s remote - insourcing is. I would like to tell a few words about Outsourcing because it’s the common form of cooperation between different remote companies. Outsourcing has become a business buzzword over the last 15 years. As always, however, there are proponents and opponents of this concept. Proponents are sure outsourcing reduces costs, makes companies more competitive, and promotes economic growth worldwide. One of the benefits of outsourcing is that there’s no long-term commitment. The two firms will negotiate a contract, and when the work is done it’s done, and a new contract can either be negotiated or not. Those against outsourcing say it hurts local workers. In certain ways, both are right.

There is alternative to outsourcing. Insourcing (In - house). Insourcing is a business decision that is often made to maintain control of critical production or competencies. So, you have your own employees do the work. The benefits of insourcing include face-to-face interaction with your employees and hands-on training. You will be able to monitor their work, describe your requirements and company passion more clearly, and build the company culture you want. The main point of such cooperation is company mission. Your employees aren’t just tools, they are creators. If you hired right, they should care about your mission and take pride in their work.

However, Insourcing has its downsides. It’s probably, you may need to increase staffing and resources, and your management team may have to spend time managing insourced projects rather than concentrating on core business activities. Also, insourcing may be more expensive than outsourcing. For example, if you want to create a new department or product, the startup, and operating costs could be significantly higher if you try to do it by means outsourced companies. Sometimes you may not always get the best results if your employees don’t have the necessary experience or skills. It takes some time to train them properly. Beyond the financial burden of an in-house employee, there are a few regulatory burdens that are intimidating to many entrepreneurs (federal tax filing, legal hiring and firing practices and so on).

What’s decision?

Remote - Insourcing. There are two related business models such as Dedicated Team and Outstaffing. Remote - Insourcing is a business model that allows their customers to have dedicated teams or employees working as a true extension of their in-house staff. Insourced companies train teams on client’s company, corporate culture, processes, objectives, plans and key criteria for the new department success.

In other words, the contractor provides support of ongoing process in whole. Remote in-sourcing enables to be built for a client, with full transparency. So everybody knows exactly who is working on which parts of which projects at any given time – but importantly the ‘remote factor’ means that costs can always be kept to a minimum.

Another model of financial cooperation is Dedicated Team. This concept boils down to the definition. Any single team is assigned to just one development initiative or to the support of just one set of technical assets at a time. The key point is any individual is assigned to just one team at a time. This team is formed for special initiatives and then it’s dismissed.

Outstaffing is something like remote - insourcing when one company provide employees to another one. This word is used in post - USSR countries. In the U.S., the practice of long-term but indirect employment through a third party would be called contracting or hiring a contract worker. The contract is between the hiring company and the staffing company, contracting firm or employment agency which provides the workers.

What does it mean? The business choice depends on your needs. The remote team is always created based on the client’s needs and requirements and offers the best model of compatibility with the client’s’ project goals. It also guarantees that security risks are minimized as the same people will always be working on the same projects, which of course reduces re-training costs to boot. The main one point working with a remote team is transparency.