Variations on Sourcing Models: Insourcing with Strategic Sourcing as Possible Prelude

Consulting. In lieu of outsourcing, an enterprise may decide to hire the service provider as a consultant.  Indeed, many service providers have consulting service branches that can assist enterprises in managing processes and infrastructures, with the possibility that later the enterprise may wish to engage in some outsourcing.   In this scenario, the enterprise’s internal managers look to the consulting practice of the outsourcing service providers as process experts.  Such external service providers are then hired as consultants to measure operations against the commercial benchmarks, analyze work flows, identify strengths and weaknesses of the insourced operations and make recommendations for improvement. In this insourcing model, the internal staff then selectively adopts and implements the consultants’ recommendations.

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