Inshoring: What It Means and How Different Is It?


The meaning of outsourcing/ offshoring has been drilled into us for over a decade now, but the increasing usage of yet another term ‘inshoring’ has also gained prominence. The online encyclopedia defines inshoring “as Term used occasionally as an opposite to offshoring, when a foreign firm relocates a part of its productive activity into the domestic economy. “But is it just that? Or is it much more? Inshoring also means

* Better proximity with the enterprise and also customers

* Better usage of integration and collaboration tools for enhanced product development cycles

* Easy management dealings and enhanced IT infrastructure services

* Faster application development services and cost effective product development.

Therefore its no wonder then that with such advantages many mid sized and large IT enterprises that were outsourcing their software process work to countries in Europe, India and China are now choosing to shift focus to the US heartland and get their process requirements fulfilled inland’s rather than heading overseas.

So how effective is inshoring?

Firstly let’s figure out how Inshoring actually works. So say for instance there is an enterprise which functions out of New York or LA and it instead of choosing to go overseas, it opts to give their core-operations process work to a team of professionals who are situated somewhere in the mid-west, say Wisconsin or Michigan. Thus it becomes their inshoring delivery center. Mid-west has increasingly become a wise choice for inshoring opportunities is because these mid-west states have some of the top engineering and technical schools in the country. Inshoring ensures the use of local talent and potential ensuring faster and cost-effective work as compared to offshoring the same to places like Bangalore, Krakow or St. Petersburg.

Benefits of Inshoring

There are different benefits of inshoring and they include

* Leveraging best business practice in your heartland

* Discarding inefficiencies in the product development cycle

* Getting definite value-addition because of proximity of the delivery center

* Extending complete control over business processes

* Maximizing cost effective operational benefits

* Removing any kind of cultural and time-zone differences

* Uplifting local talent/potential

Domestic inshoring uses local processes, resources and technologies and adds value not just to your own business but also ensures economic and social gains for the country. From alleviating those standard risks of offshoring, inshoring can surely add power to your own enterprise and also give that much necessary boost to the local industry/talent within the country.


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