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MPM 673- Procurement and Management

Aug 28, 2023

Week 4 Discussion Board

Weekly Discussion Question – (25 points)


Respond to the following: Today it is extremely important to understand the concepts of insourcing and outsourcing. For this discussion question, utilize what you have learned in the readings to offer a working definition of these two important concepts and describe why these concepts are important for Highpoint Barnie and this particular project. Again, emphasize the definition. Should Highpoint Barnie consider outsourcing? Should they instead, focus on insourcing more? What are the advantages of each option? You may, as always, fictionalize additional details of the scenario in answering these questions.

Week 4 Discussion                                             

In insourcing, the project is assigned to the person who is within the department or the company. No one outside the company or the department will get to do the work. Insourcing involves bringing professionals in from other companies or locations to help complete tasks. Insourcing differs from outsourcing where companies place responsibilities on outside groups or companies. In insourcing, all the work that is pthatmed in the organization is within it. No work is performed outside of it as well.

In the case of the outsourcing practice of hiring a party outside a company to perform services. Here the involvement of the third party is there in the organization. The work here is given to the other party who is outside the organization (Pankowska, 2019, p.5). In case of the outsourcing the work, the work is mainly performed by the third party where the third party helps to perform the work properly. The reason for outsourcing which most companies perform is that they do not want to hire any person from the organization to complete the work instead they find it easy to provide the work to the other part and they can perform the work as well properly without any issues.

According to me, Highpoint Barnie should consider insourcing the organization. As things are good instructing is best for the organization. Accordingly, insourcing is done within the organization then the people in the organization get to know the various work which they did not have any knowledge about it as well. Insourcing is important at this point as with the help of insourcing in the organization the work can be performed properly and the people will be able to understand the problem and try to solve it buy their help. With the insourcing in the organization, more self-confidence will take place among the employees that they can able to perform the work properly. Focusing on outsourcing helps reduce the organization’s financial loss as sometimes the outsourcing leads to financial loss because the other person is to be paid for the work which is not in the case of insourcing.

The advantage of insourcing is stated below-

Firstly, with the help of insourcing, the work gets done without any additional costs that can take place in the organization.

Secondly, with insourcing, more innovation in the work can take place as the people will get to understand more work that needs to be done (Anderson & McKenzie, 2022, p.157). The people or employees will come together and work together for the work which helps to build a good bond among themselves.

The advantage of outsourcing is stated below-

Firstly, with the outsourcing of the work, the pressure related to the work gets solved the work gets done within the time limit and there are no stress factors that can take place related to the work.

Secondly, the outsourcing of work means no more job interviews are there and no hiring is there. With the hiring of the person, there comes more responsibility at work and more responsibility for the training as well.


Anderson, S. J., & McKenzie, D. (2022). Improving Business Practices and the Boundary of the Entrepreneur: A Randomized Experiment Comparing Training, Consulting, Insourcing, and Outsourcing. Journal of Political Economy130(1), 157-209.  

Pankowska, M. (2019). Information technology outsourcing chain: Literature review and implications for the development of distributed coordination. Sustainability11(5), 1460. 

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