Rightsourcing: Finding the Balance Between Outsourcing and Insourcing

The rising importance of outsourcing has given rise to the newest catchphrase in business: rightsourcing. Staying true to its root word of right, rightsourcing is all about selecting the best source to deliver the services you need.


Rightsourcing is selecting the best way to procure a service and deciding whether a company is best served by performing a business requirement in-house (insourcing) or contracting it out to a third-party service provider (outsourcing). Rightsourcing literally means “choosing the correct source.” — Margaret Rouse


Rightsourcing and outsourcing are technically very similar. They share certain key characteristics, such as allowing firms to focus on their essential objectives. As a result, non-core projects are delegated to contractors. Rightsourcing just takes outsourcing to the next level.


Rightsourcing is now on its way to innovate enterprises of all sizes, quietly gaining traction with most commercial outsourcing providers.

Which is Best For Your Business?

It takes time and patience to find the proper talent for critical tasks. Even determining whether or not to outsource a crucial position requires careful consideration.

Rightsourcing vs. Outsourcing


Rightsourcing and outsourcing are two similar approaches for helping businesses to find people that can execute jobs correctly while ensuring productivity and efficiency. While many aspects of the two recruiting strategies are identical, there are some variances. Here is a summary of similarities and contrasts between these two types of sourcing:



Rightsourcing often allows more administrative control over services offered to your business. It also frequently develops a collaborative relationship between your company and the firm or individual delivering services. This guarantees that the end result satisfies the needs of your organization. Furthermore, rightsourcing allows you to provide feedback and adapt services as needed to correspond to your individual requirements, which can be especially useful if internal conditions change, such as a shift in client preferences.


Outsourcing allows less direct control over services or projects. Once your organization has contracted the work, an outsourcing provider normally has complete control over the service or project.



Rightsourcing executes its strategies through a process known as co-sourcing. When a company’s employees and rightsourced services work together to achieve the same goal, this is referred to as co-sourcing. For example, your organization may have purchased new equipment that incorporates new software or technology that your staff are not yet acquainted with. The company you found through rightsourcing may offer training and information to assist your internal professionals in becoming acquainted with the new technology.


Co-sourcing strategies are rarely used in outsourcing. They usually have complete control over the project or service for which you’ve hired them and may not collaborate with your firm to finish duties.


Rightsourcing allows you to set your own price for finding the ideal expert to execute a service or project. This is due to the fact that your company has the freedom to choose whether to outsource a service or discover talent within your organization to execute a project. 


Rightsourcing a single individual who is knowledgeable about a piece of software and can instruct your employees, for example, may be less expensive than collaborating with an entire outsourcing organization to perform training sessions.


Rightsourcing broadens the range of sources a corporation might go to discover the suitable person or company. Companies can hire workers from within their organization, a local firm, or a remote business, among other alternatives. This variety can expand the number of customisable solutions accessible to assist in the completion of tasks or projects. However, with traditional outsourcing, a corporation can only choose among organisations that offer outsourced services.



Rightsourcing, in conjunction with digital communication, promotes effective communication between your organization and its hired talent. This communication can boost productivity and assist your firm in resolving challenges more effectively. Establishing communication methods can also help to prevent confusion and the time it takes to define project needs.


Because outsourcing firms manage work on their own, there is limited collaboration and only necessary contact between the two sides.



Rightsourcing allows your firm to broaden its search for the ideal people or company to deliver services, which can result in an increase in service quality. More alternatives can assist you in finding the best fit for your organization. For example, if your company installs new equipment that is being implemented industry-wide, instead of outsourcing training services to a local company, you can rightsource to get an expert straight from the equipment manufacturer.


Outsourcing firms frequently deliver high-quality services, but the restricted number of possibilities may make it more challenging to discover personnel who can satisfy your specific business needs.


When to Insource


The decision to keep certain tasks in-house can’t only be motivated by financial considerations. A variety of other factors come into play, including your overall vision for your marketing team, your current demands, and expected future needs. Hiring to maintain certain services in-house may make sense for your business if:


  • The expertise or competency you are looking for is critical to your organisation’s differentiation strategy, or it is a proprietary marketing competence that gives your institution a competitive advantage.
  • You require the employee with the desired competence to serve in a multi-functional role inside your organization; he or she will do more than just the post for which you are employing.
  • The addition of a new individual with the needed skill would supplement the company’s existing resources.
  • You can expect budget stability or increase, allowing you to continue funding a new job in the long run.
  • Your need for the skill or resource will be sustained throughout time, and demand for the skill or resource can be reasonably expected to be stable.
  • A disruption or volatility in the required talent or resource would be detrimental to business.



When to Outsource


Outsourcing can be a cost-effective approach for companies to build a wide range of abilities in a short period of time. Rather than investing time and money in training someone in-house, outsourcing suppliers often already have a pool of resources with the skills you require. 


Outsourcing may be beneficial to you if:


  • You need a certain talent or asset for a time and resource-constrained effort, goal, or delivery.
  • The person who will fit the desired role will not need to be multi-functional, but will instead need to be focused on the aim that is specific to their role.
  • Due to budget constraints, financial resources to sustain the resource may fluctuate and/or must be lean (e.g., cost-savings in terms of benefits, wages, taxes for in-house staff).
  • Demand for the skill or resource is anticipated to fluctuate over time; demand is insufficient to justify a full-time, in-house employee but is adequate to warrant access to the skill or resource via an outsourcing partner.
  • You have an immediate need for the talent or resource, and you don’t have the time to invest in recruiting, employing, and training someone to perform the required function.

One Size Definitely Does Not Fit All

While a desire for greater balance is a common theme among businesses looking to outsource or rightsource, “balance” will not look the same for everyone. The right mix of in-house and outsourced resources will be different for each organization, depending on numerous factors, including many we’ve explored here.