So, You are Thinking About Insourcing?

5 Things You Should Consider

Author’s Corner

In this white paper, Mark Kausel, Director of Client Services, explains why insourcing can be challenging, and how outsourcing can be a viable alternative that delivers successful results.

Please click on the video to the right to learn more about the author, hear his insights on this white paper, and learn what motivated him to write about this topic.

To discuss this white paper in detail, please contact Mark using the information provided at the bottom of the page.

Organizations throughout the world are redefining their delivery models to be more agile in responding to geopolitical conditions (i.e., COVID-19, Brexit, etc.). Global business service (GBS) models under consideration include insourcing and outsourcing. The pandemic demonstrated that work can be effectively performed remotely, and people enjoy flexibility contributing to a new work/life balance. Many organizations are now considering reducing office space and allowing work from home (remote). It raises the question: if they allow working remotely, why limit the acquisition of talent to local communities? Why not expand the search globally to find the best talent?

In the 2021 Global Shared Services and Outsourcing Survey Report (Delloite, 2021) conducted by Deloitte, those respondents who invested in global business outsourcing and shared service center capabilities were able to achieve:

  • Standardization and efficiency in processes
  • Reduced costs
  • Increased business value
  • Digital agenda acceleration
  • Capability development

With the right outsourcing partner, organizations achieve:

  • Increases in efficiency
  • Reductions in costs
  • Greater business value and growth

There is an advantage to leverage global, multifunctional, and virtual or remote models to deliver services considered non-core to your business offering. But to be successful, an organization must find a BPO partner that demonstrates the ability to mitigate the risks involved with outsourcing.

The Challenge

As organizations evaluate the best way to deliver their product or service, their focus is aimed at increasing revenue, reducing costs, and boosting efficiencies within the organization to drive greater business value. Successful businesses identify key performance indicators (KPIs) and measure and compare them regularly. How can outsourcing assist an organization with optimizing their KPIs? One way is to outsource non-core functions, especially today. Examples include payroll, IT services, human resources and other support services.

Business goals remain the same, but how to achieve them has changed since the pandemic began. The U.S. Business Process Outsourcing Services industry is expected to be $US 56.0 billion in 2022 (IBISWorld, 2021). Globally, the business process outsourcing market was $US 245.9 billion in 2021 (Grand View Research, n.d.) and growing. Is it better to insource or outsource non-core functions?

Business Process Outsourcing in the US

The Considerations

Insourcing is the practice of assigning work (task, projects, or responsibilities) to your internal workforce. These resources are employed by your company. Outsourcing establishes a business arrangement with an external organization that performs the work on behalf of your company. There are many variations, but in general outsourcing organizations are considered:

  • Onshore – work is performed within your country
  • Nearshore – work is performed in a nearby country in the same or close-by time zone
  • Offshore – work is performed in a country that may be multiple time zones away

As one evaluates insourcing versus outsourcing, there are many considerations, and each organization must determine what is most important to them and which will provide the greatest chance to achieve your KPIs. The table below summarizes the pros and cons of insourcing and outsourcing.

      Pros Cons


  • Utilization – leverage existing experience and talent within your team
  • Quality Control – quality checks may be easier when you are in control of the resources and work
  • Communication – it is easier to communicate and get prompt responses
  • Brand Control – more control over your brand and reputation. Employing people from the local community can cultivate employee and customer loyalty
  • Initial Investment – it is more expensive to recruit, hire, onboard, train, and manage employees. There is also the cost of paying for benefits, equipment, and infrastructure to support them.
  • No economies of scale – it is challenging to create economies of scale within the organization
  • Less efficient use of company time – assigning basic tasks to high paid resources creates inefficiencies


  • Access to specialization – outsourcing organizations have access to specialized knowledge and equipment
  • Short-term savings – With no large upfront fees, organizations can recognize savings far more quickly
  • Focus on core responsibilities – more energy and focus can be applied to the core business functions
  • Immediate assistance – enables organizations to accelerate going to market or get projects moving forward
  • Slower long-term delivery – relying on service provider’s schedule to complete the work
  • Lack of Continuity – changing outsourcing providers can create transition challenges
  • Communication challenges – different time zones and languages can create communication barriers

There are ways for organizations to mitigate the cons and further accentuate the pros of outsourcing. At Vee Healthtek, we have developed outsourcing solutions to accomplish this.

Achieving Results

Over the many years of successfully delivering outsourcing solutions to our clients, Vee Healthtek has identified some best practices that have proven to be effective in reducing the uncertainty described by the “cons” in the previous table and enhancing the “pros”. Our clients experience the following:

Practice Impact
  • Dedicated resources are assigned and trained to support our client specific workflows.
  • Meet Service Level Agreements - Institutional knowledge is maintained, creating stability and continuity even with fluctuations in volume or staffing. The COVID pandemic is an example of how we were able to maintain our service levels for all our clients.
  • A bench is established to support variability in volumes and prepare new resources.
  • Maintains continuity and supports consistent performance.
  • Industry leading governance program lead by U.S.-based account management ensures open and regular communication.
  • Communication is open, ensuring expectations are met and objectives are achieved.
  • Staff works off shifts
  • Reduces turnaround times
  • Leverage experienced resources and supplement with freshers, supporting both through continuing education and a corporate wide mentor program.
  • Develops a highly competent staff to support specific clients.

Vee Healthtek is a well-established company that has the experience of being on the forefront of many initiatives. The culture supports ongoing education, investing in our people, resulting in long-term, loyal employees. Our clients benefit from this and can use our expertise to mitigate the risks of outsourcing. A partnership with Vee Healthtek means achieving Extraordinary Outcomes.

Our onshore and offshore teams work in unison to deliver the very best client experience. A Vee Healthtek client can have the confidence to focus on their core business, while Vee Healthtek handles the non-core functions. Our clients gain peace of mind because of our commitment to excellence and our drive to deliver the very best.

Mark Kausel

Meet the Author

Mark Kausel - Director of Client Services

Mark Kausel applies over 30 years of experience from healthcare operations, information technology, and sales and account management roles to deliver strategic solutions to client challenges, resulting in positive outcomes with long-term relationships.