What decision-making process is associated with determining which services should be conducted in-house instead of outsourced?

The decision-making process associated with determining which services should be conducted in-house, rather than outsourced, is referred to as insourcing. Insourcing involves evaluating the capability and resources of an organization to perform certain services internally rather than relying on external providers. This process requires a thorough analysis of factors such as cost, quality, control, and strategic alignment with the company’s objectives.

Utilizing insourcing can lead to increased control over operations and better integration within the company’s existing processes and culture. It also holds potential advantages in terms of flexibility and responsiveness, as services performed internally can be more easily adjusted to meet changing demands.

In contrast, outsourcing involves delegating services to external vendors, while subcontracting typically refers to outsourcing specific tasks to third parties within a contract framework. Offshoring relates specifically to relocating business processes to a different country, primarily for cost reduction. Those concepts do not focus on the decision to keep services in-house, thus differentiating them from the insourcing process.