The primary reasons for when and why insourcing or outsourcing decisions take place. Case summary: Company FC is a Company FC is a $3 billion producer of small industrial engines. The firm is undergoing an internal review on the areas the company should focus the product development efforts. Insourcing and outsourcing is part of redefining Company FC approach. Insourcing: It is a process where a project is assigned to a person or departments inside a company instead of assigning it to the third party. Outsourcing: It is the practice followed by businesses to employ a third party to produce some goods that were formerly made in-house in the company by their own workers.

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Chapter C, Problem 6.3A

Summary Introduction

To explain: The primary reasons for when and why insourcing or outsourcing decisions take place.

Case summary:

Company FC is a Company FC is a $3 billion producer of small industrial engines. The firm is undergoing an internal review on the areas the company should focus the product development efforts. Insourcing and outsourcing is part of redefining Company FC approach.

Insourcing:

It is a process where a project is assigned to a person or departments inside a company instead of assigning it to the third party.

Outsourcing:

It is the practice followed by businesses to employ a third party to produce some goods that were formerly made in-house in the company by their own workers.

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