The Backsourcing Process

Introduction The purpose of this article is to analyze and compare the backsourcing decisions of two private and separate entities. This document will look into the decision making process, as well as, address how each organization managed the entire backsourcing procedure. This paper will also focus on the critical factors which would determine success or failure in this procedure. Additionally, this article will examine the similarities and differences between the two organizations. Nevertheless, understanding truly what the benefits of backsourcing are largely means the reasons to pursue such a path should come with great thoughts and consequences for good or bad. The problem is that backsourcing is hard to gauge. True cost & success …show more content…
This leaves gaps and speculation as a common factor. The root cause of this is that organizations not wanting to air dirty laundry in a public forum; this is especially true when the sourcing organization will play a large part of the backsourcing efforts. Therefore, the right solution for backsourcing must be a well detailed plan which looks to undo the outsourcing of IT services while ensuring that the original outsourcing services can be done in-house to the standard that would support the organization’s essentials and objectives. Keywords: backsourcing, outsourcing, in-sourcing
Arrival at Backsourcing For various reasons an organization can find itself at the point of either strongly considering or actually taking on the challenge of backsourcing. However, to ensure that there is a comprehensive understanding in this area of operation – it would be best to expand on how an organization would get to such a point. Generally speaking backsourcing in a valuable option for many different reasons. One such reason is the advent of the end of a contract. Another reason is poor or unacceptable performance of the sourcing company. The …show more content…
The first being that both are in entirely different industries and their forecast are exact opposites of each – meaning one market is declining (MediaCorp) and the other (ITServCorp) is growing. For MediaCorp it was a venture on how to provide savings to the organization while ITServCorp it was based on problematic service. MediaCorp relationship with the vendor was good so the transition was a smooth one. This could not be said of the transition of ITServCorp in the backsourcing process. MediaCorp overall decision to backsource was driven by cost consideration. ITServCorp overall decision was based on performance or a lack thereof by sourcing entity. These are some of the various things in which these organizations are different. However, there are things in which both organizations are the same. For example, in order to successfully complete the backsourcing process both organizations must have competent professionals who are motivated to make this change successful. Though they have different reasons for looking at changing the outsourcing problem both decided on backsourcing as the right solution to their outsourcing problem. While they had different results both organizations within the transition process understood that they need the source company’s input for their technical knowledge. The final thing to note