Insourcing

You can bring work inside. Your customers can too.

The same capability that changes your supplier choices can change your customer’s reason to buy. Explore both directions: what should you own, and what distinctive value will you still contribute when your customer becomes more capable?

TIP encourages customers to insource the approach so that their own people can apply and scale it. That makes capability transfer part of the value of the relationship.

Choose the allocation your business needs →

Why we want customers to insource TIP →Follow the commercial risk →

Klarna Group plc · Company annual filing; company-reported attribution

Klarna reports a $7m Q1 2024 reduction in external marketing-supplier spending versus Q1 2023 and attributes 37% of that decrease to AI. Named services include translation, production, CRM and social agencies. The filing also describes workforce reduction alongside AI efficiency, cost optimisation and normal-course employee attrition.

Management attribution, not an experiment. Supplier reduction is not proof every service moved in-house. The filing does not establish that every leaver went unreplaced, that there were no layoffs, or that all workforce changes were caused by AI.

Original source ↗Evidence note →

podcast

Agentic AI and the future of global business services

McKinsey · McKinsey Talks Operations

A useful prompt to reconsider the boundary of shared services: which decisions and activities could move closer to internal operating knowledge?

Listen or watch for: Would moving more work inside improve the complete process, or simply move a bottleneck?

Listen to the podcast ↗Read the transcript ↗

About this resource

Consultancy examples and forecasts. The episode does not establish that insourcing is always cheaper or that predicted headcount reductions will occur.

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