Cloud Computing

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Top 8 Benefits of Insourcing within Your Workforce

In simple words, insourcing refers to a business arrangement where companies implant an onsite team from within their existing workforce to carry out a given task instead of outsourcing the same to a third party. As part of its insourcing strategy, businesses train and upskill internal employees to perform tasks.

As revealed in a recent survey, 77% of the companies have insourced IT functions that were previously outsourced. There was a time, right at the start of the 21st century, when most organizations chose outsourcing as their go-to solution to complete a project, task, or business process.

However, with the Fourth Industrial Revolution bringing in technological changes and the disruption brought by the pandemic, HR leaders are forced to rethink and re-strategize their talent acquisition and retention approach. As a result, many companies are increasingly utilizing their in-house talent pool to meet evolving tech requirements and business objectives.

Amazon is one of the leading brands attempting to “upskill” and “reskill” its employees. The company will likely invest $700 million in “upskilling” training initiatives for one-third of its workforce, giving employees the chance to receive training in in-demand fields like cloud computing and machine intelligence.

Is it preferable and more economical to employ new talent or retrain your existing workforce?

The process of finding, selecting, and training new staff is notoriously time- and resource-consuming. A report from the Society for Human Resource Management claims that filling a vacant position typically costs $4,129 and takes 42 days. According to a different study, replacing an employee often costs 20% of their income. Internal staff training helps reduce these expenses.

Why Choose Insourcing?

Every business has a pool of talent that often goes unnoticed and unutilized. Insourcing your tech team can be beneficial in many ways. For instance, it makes your business more resilient by having you build and nurture an in-house IT support efficient to take care of technical challenges that you would otherwise have outsourced.

Let’s explore the other tangible benefits of insourcing your tech team through reskilling internal employees:

Address Tech Talent Shortage

The need for software developers is greater than the supply in many areas. Finding a pool of applicants is challenging because there is fierce competition for talent in the market and to meet their staffing needs, organizations are seeking creative solutions. Upskilling internal talent and insourcing them to meet project requirements can help address the growing tech talent shortage within your organization.

Identify the Right Talent for Mission-critical Tasks

The candidates within the company are well-known, you’ve had a chance to evaluate their work ethic, fit with your culture, and interpersonal and teamwork skills. They have previously demonstrated their dedication to the goals and ideals of your company.

Build Stronger Subject-matter Expertise

Consider that you are developing a claim software system. A claim processor with extensive experience using claim-related software as a client can add valuable perspective to your project. This person is familiar with the stakeholders, the workflow, and the many issues that can arise when processing a claim. Imagine having someone with this knowledge on your team to help you gather software needs. This thorough domain expertise can also aid in identifying opportunities and weaknesses in the design and code. And throughout testing and deployment, you’ll receive invaluable feedback.

Reduce Unnecessary Expenses

When you already have a talented and knowledgeable workforce, then why would you invest in outsourcing talent? Instead, you can invest in brushing up the skills of your existing team through targeted and skill-specific training programs and take advantage of insourcing for your business. This can save a lot of your outsourcing expenditure. Having an in-house team is always cost-effective than hiring a third-party team to get a job done.

Insourcing Helps Utilize Business Knowledge of Internal Employees:

When you outsource any task, you must rely on some outsider to understand your business and its needs, which can be difficult for someone who has no hands-on experience working on the principles, processes and values your company follows. However, this is not the case with internal employees as they have been involved into your business functioning for quite some time and they know the in and out of every aspect which makes it easy to make informed decisions. They are also familiar with details such as:

Lowers the Risk of Errors

One of the notable benefits of workforce insourcing is increased employee retention. Trusting outsiders with a business task instead of your internal tech team may take a toll on their confidence, making them feel demotivated and disinterested. However, when you upskill employees and insource them for a project, they feel valued and are likely to stay in your company for longer.

Outsourcing might have been a popular choice among most of the IT companies, however, it has its share of issues and consequences. A lot of companies who have been outsourcing their IT tasks have complained of the outsourcing obstacles in terms of communication, quality control and more.


CloudThat is a leading provider of cloud training and consulting services, empowering individuals and organizations to leverage the full potential of cloud computing. With a commitment to delivering cutting-edge expertise, CloudThat equips professionals with the skills needed to thrive in the digital era.



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