Insource or outsource?

Businesses are faced with a conundrum - whether to insource or outsource certain functions within their business, but HOW
Insource or Outsource - Insights from Digital Rehab

Striking the right balance in digital project delivery

In today’s globalised labour market, talent acquisition and retention have become defining challenges for modern businesses. The erosion of the “job-for-life” ethos has given rise to a new paradigm – one where talent is mobile, empowered, and increasingly selective about the work they do and the conditions under which they do it.

When managed well—by business leaders or competent, well-resourced HR teams – talent is recognised as a strategic asset. But for many organisations, it remains underutilised and undervalued.

The Talent Conundrum

As power shifts toward the individual, businesses face a critical question:
Should we insource or outsource key functions?

The answer isn’t universal. It varies by industry, business model, and strategic priorities.
To avoid overgeneralisation, let’s focus on one area where this dilemma is especially pronounced:
IT and digital project delivery.

Resourcing Digital Projects: What Matters Most?

Most organisations run multiple digital projects in parallel.
To resource them effectively, businesses must consider:

  • Availability and utilisation of internal talent
  • Budget constraints
  • Strategic priority of each project
  • Risk appetite and delivery timelines

Digital Rehab’s Perspective

We advocate for a balanced model – where:

  • Core activities and support functions are insourced
  • High-risk, high-specialisation components are outsourced

This approach preserves continuity, protects intellectual property, and ensures internal teams remain engaged and informed throughout the project lifecycle.

Common Pitfalls

In Australia, we’ve observed a growing trend:
Businesses are outsourcing entire bodies of work – especially in transformative IT and digital initiatives.

While this can improve delivery speed, it often:

  • Reduces internal visibility
  • Weakens stakeholder engagement
  • Risks knowledge loss and IP leakage

A Smarter Approach: Milestones & Sprints

Outsourcing should be used strategically – to support key milestones and sprints.
Meanwhile, insourcing should provide the backbone of continuity, governance, and institutional memory.

Final Thought
The insource vs outsource decision isn’t binary- it’s a balancing act.
Done well, it enables agility, preserves knowledge, and delivers outcomes.
Done poorly, it fragments teams and erodes long-term capability.