Insourcing
Insourcing is the opposite of outsourcing; that is insourcing (or contracting in) is often defined as the delegation of operations or jobs from production within a business to an internal (but 'stand-alone') entity that specializes in that operation. Insourcing is a business decision that is often made to maintain control of critical production or competencies. An alternate use of the term implies transferring jobs to within the country where the term is used, either by hiring local subcontractors or building a facility.
Insourcing is widely used in an area such as production to reduce costs of taxes, labor, transportation, etc.
To those who are concerned that nations may be losing a net amount of jobs due to outsourcing, some[who?] point out that insourcing also occurs. According to a study by Mary Amiti and Shang-Jin Wei[1], in the United States, the United Kingdom, and many other industrialized countries more jobs are insourced than outsourced. They found that out of all the countries in the world they studied, the U.S. and the U.K. actually have the largest net trade surpluses in business services. Countries with a net deficit in business services include Indonesia, Germany and Ireland.
The Organization for International Investment, a Washington, D.C. trade association, uses the term to describe the creation of jobs through foreign direct investment within the United States.[citation needed]
See also
Further reading
- Insourcing Top 50 2008 - Organization for International Investment [1]
- Outsourcing and Insourcing Jobs in the U.S. Economy: Evidence Based on Foreign Investment Data Jackson, J. K. (2008). Outsourcing and insourcing jobs in the U.S. economy: Evidence based on foreign investment data (RL32461). Washington, DC: Congressional Research Service. http://digitalcommons.ilr.cornell.edu/key_workplace/520/[2]
References
- ^ Amiti, Mary & Wei, Shang-Jin (2004). Fear of Service Outsourcing: Is it Justified?, WP/04/186, International Monetary Fund; Amiti, Mary & Wei, Shang-Jin (2004) Demystifying Outsourcing. Finance and Development.
2. Fielt, E.; Janssen, W.; Faber, E.; Wagenaar, R.: Design Trade-offs for Electronic Intermediaries, in: Electronic Markets, 18, 4, 2008, pp. 362-374.