The Effect of Insourcing Strategy on Organizational Savings

The study aims to analyze the effect of insourcing initiatives on cost savings within organizations.  The data was analyzed using the regression technique with the aid of Special Package for Social Science (SPSS).  The regression result shows that cost-related insourcing and non-cost related insourcing have a significant effect on organizational cost savings. The study concluded that cost-related and non-cost-related insourcing are the main determinants of organizational cost savings. As a result, the study recommended that management should increase the level of non-cost-related insourcing, like insourcing product development functions to develop products more tailored to the needs of the customers, insourcing manufacturing operations to improve quality, insourcing marketing functions for better control of brand images, will result in more organizational saving.