Outsource or Insource?

Every business, university or organization has to determine whether they should perform a service themselves in-house or outsource that particular service to an outside supply chain partner. In the university, I noticed that we are more in-house based. Why? Because based on my observation, Mr. Cagape is the one who creates and manages the databases in the school but a friend of mine said that the VAQsys software was outsourced (or a FOSS, not really sure..).

Let’s first make the distinction between outsourcing and insourcing because they are often used interchangeably. Outsourcing refers to the subcontracting practice of taking company business functions and contracting them out to a third party. While, insourcing, is the opposite of outsourcing; it means “contracting in”. In insourcing, an entity or a company personnel who can be said to be an expert in the field to be tested is the one who will deliver/create and manage what the university needs (eg. Creating databases or websites).
If I am in a situation wherein I am to take a side between insourcing and outsourcing, I would choose to outsource.

Why?
True, insourcing have its own advantages like company security and integrity is much more ensured and there will be less irregularities and faster data compilation can be done because the person who is gathering it works in the company, thus he knows how the company functions and what is its exact needs than an person outside the company but I believe that outsourcing offers a lot more.

What does it offer?
Outsourcing is..
less costly.

Skilled manpower at affordable prices:
Since it deals with searching an outside provider, the university can chose the best
from a lot of the qualified candidates outside than in the limited candidates inside the
university, thus can select a more suitable and smarter man for the job.

Concentration on core business areas
the university can still continue to do its daily tasks without interruptions unlike in
insourcing that the chosen personnel may have to stop all his recent activities, like
cancelling a class just to finish the project at hand

Increased productivity
By employing skilled manpower in larger numbers at lower costs organizations can
really increase their productivity.

Popularity of outsourcing has really taken its toll but in the end, I believe that the decision on whether to outsource or insource the needs of the university or any other organization depends on what is required and what is needed to be done.