Insourcing is the practice of assigning work to employees, rather than outsiders. Insourcing is most commonly applied when management wants to retain the most critical skills needed to ensure the success of a business. In addition, insourcing keeps payrolls local, thereby assisting the local economy. Further, management can maintain tighter control over how the work is completed.
The reverse of insourcing is outsourcing, where work is shifted to a third party, usually to be completed off-site.