Outsourcing means taking the help of other organizations to complete certain task. Insourcing on the other hand means doing that task using the home company’s infrastructure. The main difference between outsourcing and insourcing is the way the work is done. The division or differentiation of the workflow owing to strategic needs of the company. I will talk on position 2 which is insourcing. Insourcing means when a project or work is assigned in a department which is in-house. The cost applied to insourcing is different from the cost which is applied in case of outsourcing. It must be noted that in many cases insourcing proves to be difficult process as a complete new set up needs to be arranged to complete the task.