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Is insourcing the new black?

Read the full article in Danish

PA’s Stefan Knapp, a business transformation expert, shares his view on sourcing, drawing on PA and Whitelane’s 2016 sourcing report. Although half of the Danish respondents in the survey expect to increase their IT outsourcing services, an increasing number of global companies are going against this trend. General Motors, for instance, has chosen to bring back their call centres to the US to improve the customer experience. 

Stefan says: “Insourcing, where a company invests in assets that need development and maintenance, enables you to have better control over processes. You can also build up internal competencies and knowledge about business-critical areas.”

Stefan goes on to say that insourcing can increase the value of a company’s asset. One PA client built their own plant in India and insourced a number of processes from a supplier, resulting in a significant increase in value of the plant building. 

Stefan concludes: “Insourcing also involves risks when it comes to operations and resources, and requires a strong insight into the core business, the market and other factors that may have an impact on whether to insource or not.”

Stefan Knapp is a business transformation expert at PA Consulting Group

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