What does insourcing refer to in a business context?

Insourcing in a business context refers to the practice of producing products or providing services internally, rather than relying on external sources or suppliers. This approach often involves bringing tasks or production processes back within the company, allowing for greater control over quality, costs, and operational processes. By insourcing, businesses can leverage their existing workforce and resources to improve efficiency and maintain consistency in their offerings.

In contrast to other practices like outsourcing—where tasks are delegated to external parties—and offshoring—where production is relocated to another country—insourcing emphasizes maintaining operations within the organization. This strategy can enhance the organization's ability to innovate and respond rapidly to market changes, as processes are managed directly in-house.