Heavy Strategy HS114: In or Out? Deciding Which IT Functions to Bring In or Push Out
Oct 14, 2025
Exploring when to insource or outsource IT functions, the hosts stress the need for organizations to reassess sourcing strategies during shifts in the economy or technology. They discuss the sacrifices made when outsourcing, including loss of control. Key drivers like demographics and cloud economics are analyzed. There's a spotlight on the importance of aligning IT with HR and determining the true purpose behind moving workloads. The discussion also touches on the risks of inaction and the delicate balance between swift transitions and comprehensive planning.
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Cloud Is One Point On A Spectrum
- Cloud is a flavor of outsourcing and belongs on a continuum with insourcing decisions.
- Decide if a function needs a human, human+tech, or pure technology before choosing location.
Start With Why And Business Alignment
- Start by asking why you're considering insourcing or outsourcing and tie it to corporate strategy.
- Don't treat cost-cutting chatter as a sufficient driver; align with business goals instead.
Cloud Often Means No Cost Savings
- Moving to cloud often doesn't save money for most enterprises; it's neutral or costlier depending on workload.
- Cost savings usually require giving up control or functionality, so weigh trade-offs explicitly.
