In-sourcing is defined as which of the following?

In-sourcing is defined as which of the following?

• A. Reverting back to in-house production after outsourcing
• B. Sharing a process/function between internal staff and external providers
• C. Company buys a supplier
• D. Corporate buys everything

Answer: (A)

In-sourcing means bringing work back inside the organization and having internal staff and resources perform a function that was previously handled by an outside provider. This approach is often chosen to regain control over quality, timing, and costs, or to protect strategic processes and knowledge. Reverting back to in-house production after outsourcing fits this definition exactly, which is why it’s the best description of in-sourcing. The other ideas describe different arrangements: sharing a process between internal and external teams is a hybrid or co-sourcing setup, not true in-sourcing; buying a supplier relates to acquisition or vertical integration rather than bringing work in-house; and buying everything suggests an extreme form of control that isn’t what in-sourcing refers to.

In-sourcing means bringing work back inside the organization and having internal staff and resources perform a function that was previously handled by an outside provider. This approach is often chosen to regain control over quality, timing, and costs, or to protect strategic processes and knowledge. Reverting back to in-house production after outsourcing fits this definition exactly, which is why it’s the best description of in-sourcing.

The other ideas describe different arrangements: sharing a process between internal and external teams is a hybrid or co-sourcing setup, not true in-sourcing; buying a supplier relates to acquisition or vertical integration rather than bringing work in-house; and buying everything suggests an extreme form of control that isn’t what in-sourcing refers to.