Outsourcing “A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.” Lower costs Innovation Support Increased Demand Contribute to Efficiency Skilled Workforce New Technology and tools
Advantages vs Disadvantages Fewer staff required No in-depth specialist knowledge of the scanning process itself is required Less investment required No pressure to operate at full capacity Intensive preparatory work Time-consuming preliminary arrangements Dependent on the external supplier's deadline
In-House Production “Conducting operations within a company using internal “technical” resources while utilizing its own employees and time within the production process.” Requires holding ready capacities in terms of equipment, qualified staff, and other resources Only in-house management decisions to mobilize resources No preparatory work of procurement, specification writing, request for offers, evaluation, contract and time loss Typical example (IT industry)
Advantages vs Disadvantages Flexibility (communication) Quality control (over production process) Speed to market & updates (instant reaction) Developing essential technology skills Production expense Limited skills Tying up staff resources
Top tips Outsourcing or In-house production? Step-by-step plan Stage 1: Describe your own situation Stage 2: What can be outsourced and what not? Stage 3: Which sub-contractors? Stage 4: Ask for quotations Stage 5: To manufacture or outsource? Stage 6: Implementation