Can You Go Home Again? Repatriation’s Role in the Sourcing Strategy Mix

Outsourcing strategies have evolved from a sole source “one throat to choke” approach to a multi-vendor model designed to leverage best-of-breed capabilities.  Throughout this evolution, repatriation of outsourced services has periodically surfaced as an alternative solution.

Today, repatriation or insourcing is emerging as one component of the overall sourcing strategy mix. Many enterprises are identifying specific functions that are better suited to in-house management. But while businesses are generally getting smarter about their sourcing strategies, many still pursue repatriation for the wrong reasons.  Moreover, organizations often fail to anticipate and prepare for the significant costs and risks involved in transferring services back in-house.

This ISG white paper examines potential benefits as well as risks and challenges associated with insourcing.  The author focuses on how enterprises can make informed decisions about repatriation and manage repatriation risk more effectively. Strategies to improve business outcomes – either through outsourcing or in-house operations – are outlined.