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Insourcing of IT Workers: A Win-Win Strategy ‑ Economic Analysis of IT Units in Israeli Governmental Offices
Abstract
Corporate Social Responsibility (CSR) is a policy and the practices of corporate responsibility for the common good. It might take the form of donations, environmental responsibility, or socially related investments. However, CSR can also be an in-house strategy regarding all the Human Resources (HR) of the company, making them part of the “common good” by fair employment. In this manner, employment contracts can be regarded as both a CSR and Business Ethics (BE) issue. Treating your employees in a respectable way represents the most basic form of corporate responsibility and respectable ethics. The chapter brings an economic analysis illustrating that applying fair and moral HR practices, particularly favoring internal employment (insourcing) over external employment (outsourcing), is consistent with CSR and serves the primary corporate goal, increasing its value. Insourcing is thus a win-win strategy, where in addition to CSR and BE aspects it has a direct impact on the company's achievements.
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