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When Insourcing Makes More Sense Than Outsourcing

Outsourcing has become the mantra for businesses that want to save money and keep costs down for consumers. Outsourcing certainly has its benefits. In today’s global economy, even small businesses can save money by outsourcing to companies in India, China, and other countries where workers get paid less than the typical American employee.

Outsourcing, however, is not always the answer. That is why many businesses have started to explore the advantages of insourcing. Insourcing means hiring a company within your nation’s borders to do work for your business. President Obama has promoted this concept throughout his term. In what circumstances, however, does insourcing really make more sense than outsourcing?

Insourcing When You Want High Quality Customer Service

Outsourcing customer service to India is cheap, but a lot of American consumers dislike talking to people halfway around the world. They want to talk to people closer in proximity to them: other Americans who understand their concerns and way of life. Insourcing makes it easier to put wary consumers at ease by giving them the opportunity to communicate with people who make them feel more comfortable.

Of course, you have to make sure that you insource with a reliable customer service company. Hearing a familiar accent might help American consumers feel comfortable at first, but, ultimately, you need strong customer services that will solve problems quickly without creating negative publicity for your company.

Insourcing When You Want to Advertise Your Commitment to American Workers

Many Americans love taking advantage of low-priced goods and services that come from outsourcing, but they also want to support American workers so that the country gets the benefit of job growth and economic stability. It is a bit of a Catch-22. One thing is certain, though. Insourcing makes it possible for you to advertise your commitment to American workers. There are plenty of consumers that want to support companies that keep jobs in the United States instead of shipping them overseas. Let those consumers know that you choose insourcing instead of outsourcing, and you could have customers for life.

Outsourcing has kept prices down for American consumers, but it has also had a negative impact on job growth in the United States. If you want high quality services and the ability to tell consumers that you support American workers, then insourcing might offer advantages that could help your business succeed.



Matt Thompson has written for numerous online and print publications. He has spent time as an editor for a media research company that supplies marketing materials to some of the country's most influential corporations.