Insourcing

Under insourcing, Backsourcing or restocking means the reintegration of ( previously outsourced ) processes and functions in the company.

Insourcing reduces dependence on external suppliers, back large parts of the overall production process are made in-house. This increases the reliability of the planning, also, the required quality will be more guaranteed.

A variant of insourcing is present when workers whose jobs have been eliminated through rationalization, will take a layoff continue to be employed in that formerly external parts of the production are brought back into the company.

Other reasons for insourcing can be:

• The calculated potential savings for a previous outsourcing not meet ( more)
• By changing the initial situations ( size of the company, business model adjustments) changing conditions apply
• The dependence of the outsourcing company is to be reduced
• The loss of expertise in the outsourced business sector leads to risks in the company's control.

There is a tendency for higher inflation considered in the framework of economic theory as insourcing - promoting, as companies act more reserved about the willingness to contractual obligations to other companies.

When sourcing the acquisition of a foreign power so far into their own business activity continues to be identified.

The shift back to domestic location of overseas outsourced business segments is defined with insourcing. In this case it could be, for example, a German company, which again shifts production department back to Germany and thus operates insourcing.