There are many reasons why an organization would want to internalize operations and many reasons why they would outsource. A few arguments for internalization are;
1 Expand customer demographic
2 Expand available labor force
3 Diversify company’s footprint to increase stability
4 Increase bottom line
5 Expand brand recognition
6 Expand market share
No matter, an organization’s reasoning for internalizing operations typically control increases, along with the cost and the responsibility now lies completely on the organization rather then a contract with another organization that specializes in such operations. It is wise to consider the benefits of internalization and outsourcing carefully.
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