Which of the following is a challenge associated with insourcing?

Insourcing refers to the practice of bringing processes or services in-house rather than outsourcing them to third-party vendors. One significant challenge associated with insourcing is scale limitations due to facilities and skills. When a company decides to insource, it must ensure that it has the necessary infrastructure, such as physical facilities and skilled personnel, to effectively manage and deliver the services.

This challenge can manifest in various ways. For instance, if a company lacks adequate facilities or the right technology, it might struggle to handle the volume of work required. Additionally, having a skilled workforce is essential for delivering high-quality services, and if the existing staff does not possess the necessary skills, the company may face productivity and quality issues. Training and recruitment could take time and resources, adding to the difficulties.

In contrast, the other options highlight advantages or outcomes related to insourcing that do not represent challenges. Greater control over the contract, for example, allows a business to more effectively manage service delivery. Improved customer service can result from having more direct oversight and better communication with teams, while access to specialized services can enhance capabilities when certain regions or departments possess unique skills or technologies not typically found externally.