Heavy Strategy HS114: In or Out? Deciding Which IT Functions to Bring In or Push Out
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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 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.
Make A Clear Business Case For Insourcing
- If bringing workloads back in-house, prepare to shift staffing and infrastructure budgets and make a business case to leadership.
- Show long-term strategic or economic benefits to justify moving capital and headcount back inside.
Use A Repeatable Sourcing Framework
- Build a repeatable framework to decide when to use humans, humans+technology, or pure technology for a function.
- Apply that same framework to decide where the technology should live (cloud, on-prem, SaaS, AI).
