Insourcing in the construction industry - Revision history

Designing Buildings at 10:02, 3 August 2022

2022-08-03T10:02:12Z

← Older revision		Revision as of 10:02, 3 August 2022
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	* APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.		* APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.

−	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Cost_/_business_planning]] [[Category:Operations]] [[Category:Procurement]]

Editor at 12:03, 10 August 2021

2021-08-10T12:03:53Z

← Older revision		Revision as of 12:03, 10 August 2021
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	* General Data Protection Regulations (GDPR).		* General Data Protection Regulations (GDPR).
	* Hard facilities management.		* Hard facilities management.
		+	* Mixed economy.
	* Outsourcing playbook.		* Outsourcing playbook.
	* Soft facilities management.		* Soft facilities management.

Editor at 17:34, 5 August 2021

2021-08-05T17:34:07Z

← Older revision		Revision as of 17:34, 5 August 2021
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	* Business administration.		* Business administration.
	* Business process outsourcing (BPO).		* Business process outsourcing (BPO).
−	* Competitive tender	+	* Competitive tender.
		+	* Consultancy playbook.
	* Facilities management.		* Facilities management.
	* General Data Protection Regulations (GDPR).		* General Data Protection Regulations (GDPR).

Editor at 17:27, 5 August 2021

2021-08-05T17:27:07Z

← Older revision		Revision as of 17:27, 5 August 2021
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	* Outsourcing playbook.		* Outsourcing playbook.
	* Soft facilities management.		* Soft facilities management.
		+	* Sourcing playbook.
	* Vested outsourcing.		* Vested outsourcing.

Designing Buildings: moved Insourcing to Insourcing in the construction industry

2021-02-07T07:48:37Z

moved Insourcing to Insourcing in the construction industry

← Older revision

Revision as of 07:48, 7 February 2021

Designing Buildings at 07:47, 7 February 2021

2021-02-07T07:47:44Z

← Older revision		Revision as of 07:47, 7 February 2021
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	* APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.		* APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.

−	[[Category:~~Definitions~~]] [[Category:~~DCN_Definition~~]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Definitions]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Editor at 18:04, 29 April 2020

2020-04-29T18:04:20Z

← Older revision		Revision as of 18:04, 29 April 2020
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	* Outsourcing playbook.		* Outsourcing playbook.
	* Soft facilities management.		* Soft facilities management.
		+	* Vested outsourcing.

	= External reference =		= External reference =
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	* APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.		* APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.

−	[[Category:Definitions]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]	+	[[Category:Definitions]] [[Category:DCN_Definition]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Designing Buildings at 06:09, 24 April 2020

2020-04-24T06:09:15Z

← Older revision		Revision as of 06:09, 24 April 2020
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	* Employees may leave the organisation once they benefit from the cross training they receive.		* Employees may leave the organisation once they benefit from the cross training they receive.
	* Employees may not wish to participate in insourcing initiatives and can push back against training and re-allocation of roles.		* Employees may not wish to participate in insourcing initiatives and can push back against training and re-allocation of roles.
−	* Employees may require additional continuing education or training to stay current in roles outside of their primary skillsets.	+	* Employees may require additional continuing education or training to stay current in roles outside their primary skillsets.
	* Outsourced tasks requirements may be extremely specialised.		* Outsourced tasks requirements may be extremely specialised.
	* It may be difficult to introduce an element of competition, and so services can become inefficient.		* It may be difficult to introduce an element of competition, and so services can become inefficient.

Designing Buildings at 14:48, 23 April 2020

2020-04-23T14:48:05Z

Designing Buildings at 14:40, 23 April 2020

2020-04-23T14:40:44Z

← Older revision		Revision as of 14:40, 23 April 2020
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	= Benefits of insourcing =		= Benefits of insourcing =

−	~~Organisations~~ can ~~benefit from insourcing in a number of ways~~:	+	Insourcing can:

−	* Expand the skills of employees and provide them with a better ~~sense~~ of ~~various~~ aspects of the organisation ~~(including~~ an increased sense of ownership).	+	* Expand the skills of employees and provide them with a better understanding of different aspects of the organisation and an increased sense of ownership.
−	* Improve the organisation’s ability to respond ~~more~~ rapidly to changes in the business environment by redeploying cross trained employees when necessary.	+	* Improve the organisation’s ability to respond rapidly to changes in the business environment by redeploying cross-trained employees when necessary.
−	* Establish ~~set~~ cost projections (and possibly cut labour costs) by reducing the organisation’s dependence on external resources.	+	* Establish cost projections (and possibly cut labour costs) by reducing the organisation’s dependence on external resources.
−	* Protect proprietary information about the organisation and its clients, staff and other personnel ~~covered under General Data Protection Regulations (GDPR)~~.	+	* Protect proprietary information about the organisation and its clients, staff and other personnel.
−		+	* Deliver realistic, reliable services from a flexible, integrated workforce.
−	~~Organisations that adopt insourcing may find it more practical because it delivers~~ realistic, reliable services from a flexible, integrated workforce.	+

	= Drawbacks of insourcing =		= Drawbacks of insourcing =

−	~~There are times when insourcing may not be suitable or advisable. Organisations should consider these potential~~ negative aspects:	+	Potential negative aspects of insourcing include:
−		+
−	* Cross training employees is an investment that will require time and resources. It will also take staff members away from their original roles, which means others will need to cover for them during the training period.	+
−	* Organisations may overly empower employees by providing them with access to too much information across the organisation. Employees may also leave the organisation once they benefit from the cross training they receive.	+
−	* Employees may not wish to participate in insourcing initiatives and push back against training.	+
−	* Employees may require additional continuing education or training to stay current on roles they assume outside of their initial skillsets. This also requires time and money.	+

−	~~Organisations may decide against insourcing when investing in employee~~ training is ~~not~~ an ~~option~~ or ~~when outsourced task~~ requirements ~~are~~ extremely specialised.	+	* Cross training employees is an investment that will require time and resources. It can also take staff members away from their original roles.
		+	* Employees may leave the organisation once they benefit from the cross training they receive.
		+	* Employees may not wish to participate in insourcing initiatives and push back against training and re-allocation of roles.
		+	* Employees may require additional continuing education or training to stay current on roles they assume outside of their primary skillsets.
		+	* Outsourced tasks requirements may be extremely specialised.
		+	* It may be difficult to introduce an element of competition, and so services can become inefficient.

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =
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	= External reference =		= External reference =

−	APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.	+	* APSE (Association for Public Service Excellence) - [[File:Rebuilding_Capacity_The_Case_For_Insourcing_Public_Contracts.pdf\|Rebuilding Capacity The Case For Insourcing Public Contracts.pdf]] (PDF), May 2019.

	[[Category:Definitions]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]		[[Category:Definitions]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

← Older revision		Revision as of 14:48, 23 April 2020
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	= Introduction =		= Introduction =

−	Insourcing (or self-sourcing) is the practice of using in-house staff to provide services that are not necessarily related to the primary activities (or core competencies) of an organisation. This practice may require external ~~consultants to be brought in~~ to cross train staff ~~and enable employees~~ to ~~handle various~~ tasks~~, when necessary~~.	+	Insourcing (or self-sourcing) is the practice of using in-house staff to provide services that are not necessarily related to the primary activities or core competencies of their organisation. This practice may require external input to cross train staff, enabling them to undertake new tasks.

	This is the reverse of outsourcing, which involves the contracting of non-primary business activities and functions to a third-party service provider.		This is the reverse of outsourcing, which involves the contracting of non-primary business activities and functions to a third-party service provider.

−	= ~~Standard insourcing~~ services =	+	= Insourcing services =

−	Insourcing services might include IT, security, facilities management, landscaping, accounting and other administrative functions. Some of these tasks are ~~frequently~~ associated with soft facilities management.	+	Insourcing services might include IT, security, facilities management, landscaping, accounting and other administrative functions. Some of these tasks are commonly associated with soft facilities management.

−	Within the construction industry, insourcing services may also include CAD/BIM, project management, documentation, human resource administration, energy management and other activities associated with operations.	+	Within the construction industry, insourcing services may also include CAD/BIM, project management, preparation of documentation, human resource administration, energy management and other activities associated with operations.

	When insourcing is applied to in-house facilities management departments, it may be beneficial to incorporate a charge-back scheme. This allows departments to be treated as an ‘in-house’ outsourced service with the ability to report tangible data.		When insourcing is applied to in-house facilities management departments, it may be beneficial to incorporate a charge-back scheme. This allows departments to be treated as an ‘in-house’ outsourced service with the ability to report tangible data.
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	= A return to insourcing =		= A return to insourcing =

−	In ~~2019~~, many local authorities and other public sector entities ~~began~~ to review their policies around competitive tendering associated with outsourcing and to reconsider insourcing as a method for encouraging cost containment and accountability.	+	In the last few years, many local authorities and other public sector entities have begun to review their policies around competitive tendering associated with outsourcing and to reconsider insourcing as a method for encouraging cost containment and accountability.

	Competitive tendering became increasingly common in the UK in the 1980s, when it was seen as a way of making public organisations open themselves up to bids from private firms. This was intended to increase transparency, drive down costs and improve the efficiency of central and local government departments. However, it was criticised for placing too much emphasis on cost rather than value, and is now sometimes seen as a 'race to the bottom'. As a result, many organisations have made the decision to move away from long-term outsourcing contracts.		Competitive tendering became increasingly common in the UK in the 1980s, when it was seen as a way of making public organisations open themselves up to bids from private firms. This was intended to increase transparency, drive down costs and improve the efficiency of central and local government departments. However, it was criticised for placing too much emphasis on cost rather than value, and is now sometimes seen as a 'race to the bottom'. As a result, many organisations have made the decision to move away from long-term outsourcing contracts.
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	* Cross training employees is an investment that will require time and resources. It can also take staff members away from their original roles.		* Cross training employees is an investment that will require time and resources. It can also take staff members away from their original roles.
	* Employees may leave the organisation once they benefit from the cross training they receive.		* Employees may leave the organisation once they benefit from the cross training they receive.
−	* Employees may not wish to participate in insourcing initiatives and push back against training and re-allocation of roles.	+	* Employees may not wish to participate in insourcing initiatives and can push back against training and re-allocation of roles.
−	* Employees may require additional continuing education or training to stay current on roles ~~they assume~~ outside of their primary skillsets.	+	* Employees may require additional continuing education or training to stay current in roles outside of their primary skillsets.
	* Outsourced tasks requirements may be extremely specialised.		* Outsourced tasks requirements may be extremely specialised.
	* It may be difficult to introduce an element of competition, and so services can become inefficient.		* It may be difficult to introduce an element of competition, and so services can become inefficient.