Backsourcing

/ bæk ˈsɔhrs.iŋ / backsourcing

Definition

Opposite of outsourcing.Backsourcing is the process of bringing back previously outsourced tasks, production, or functions in-house to be done internally. This often involves issues with human resources, business operations, legal, vendor relationship, and technology.Backsourcing is commonly done when there are contract problems with the outsourcing partner, misunderstanding in terms of cost with the outsourcing partner, internal organizational changes, and external organizational changes.To avoid misunderstandings and lower risk factors, the backsourcing process must be included in the agreement or contract with the outsourcing company and covers measurable service level objective and service delivery obligations of both parties.

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