What is backsourcing?
Backsourcing is the tedious process of ending or phasing out an ITOutsourcingContract that initiates the process of internal restoration of IT operations. This process has direct business interruption costs and penalties coupled with indirect costs of damaging an organization's reputation and relationships with customers, employees, investors and corporate partners.
This term is also known or misspelled as back-sourcing or back-sourcing.
The risks associated with backsourcing have led some outsourcing organizations to induce their clients to sign pre-contracts for backsourcing in which the terms under which a contract can be terminated and control of the IT functions can be traced internally .
In order to establish an effective backsourcing process, it must be ensured that organizations continue to operate even if their outsourcing arrangements fail.
A step-by-step guide to backsourcing, entitled 'Backsourcing: Why? When? And how to do it, 'comments Jeff Kaplan with the words:' Outsourcing with backsourcing in mind '.