In-house EDI Vs EDI Outsourcing

In-house EDI vs EDI outsourcing – This is the question every company must answer at one or the other time regardless of business size or operations

What is In-House EDI?

In-house EDI solutions require companies to allocate space to build the EDI infrastructure this includes the installation of servers, mapping, and translation tools, specific data integration solutions, and communication services to manage the protocols for sending and receiving EDI transactions.

What is EDI Outsourcing?

EDI outsourcing is the process of having a third-party company like Commport Communications manage a part or entire process of using EDI to exchange data with trading partners. While businesses of many sizes use EDI outsourcing, the primary benefit is usually associated with smaller businesses.

In-House EDI

EDI Outsourcing

Needs to build a hardware infrastructure

Existing reliable state-of-the-art infrastructure

Translation and mapping software

Managed translation via cloud / SAAS platform

Require continues learning

Decades of relevant industry experience

Needs experienced staff and consultants

You will have 24/7 expert support

Need to develop each data format from scratch

Unlimited data formats

Can only support limited document types. Adding new document types is time-consuming

Endless document types

Any given type can only support a few communication protocols. Adding new protocols needs experienced staff and skills

A wide array of communication protocols

You are completely responsible for the maintenance of your infrastructure

You do not have to worry about infrastructure or technology. Your outsourcing firm handles all of that.

In-house, EDI solution must be constantly monitored and needs to invest in manpower to do that

Outsourcing firms are experts in EDI solutions, so you do not have to be

You need to handle your trading partner’s special requirements

A third-party outsourcing firm can handle your trading partners’ special requirements

It’s difficult to enter new markets and territories

Increase business agility by giving you a means to quickly enter new markets and territories

You need constantly upgrade your technology

Your outsourcing company will always have access to the latest technology

You to develop each new solution on your own

Can provide multiple solutions under a single platform

You need to perform ongoing maintenance

EDI provider handles the ongoing maintenance which includes upgrades, mapping changes, and trading partner requirement changes

Require lots of IT resources

Reduces IT costs

It May require manual data entry

Reduce manual data entry or you can 100% automate it

Difficult to scale and add new trading partners

Easy to scale and add new trading partners. Integrates once to connect with anyone in the network

Prone to human error

Human errors are eliminated

Ongoing costs for licensing, certifications, resources, security and more

Pay only for what you use and scale up or down based on business demands

Hosted on your own servers and hardware

Cloud based technology


In the choice between In-House Electronic Data Interchange (EDI) and EDI Outsourcing, businesses must weigh factors such as expertise, cost, and resource allocation. In-house solutions provide control but demand significant investment, while EDI Outsourcing offers specialized services, allowing organizations to focus on core competencies. The decision depends on the specific needs, resources, and strategic goals of the business. Each approach has its merits, and the optimal choice aligns with the organization’s priorities and capabilities.

Ready to find out more about Commport EDI Solutions?

Contact us today for a free quote!

Frequently Asked Questions

In-House EDI involves managing Electronic Data Interchange processes internally, using the organization’s own infrastructure and personnel to handle tasks such as data mapping, translation, and communication with trading partners.

In-House EDI offers businesses control over their EDI processes, customization to specific needs, and direct oversight of data security. It is suitable for organizations with the resources and expertise to manage EDI internally.

EDI Outsourcing involves contracting with a third-party service provider to handle EDI processes. These providers offer specialized expertise, infrastructure, and support for tasks such as data mapping, translation, and managing trading partner relationships.

EDI Outsourcing benefits businesses by providing access to specialized expertise, reducing the burden on internal resources, and often offering cost-effective solutions. It allows organizations to focus on core business functions while leveraging the skills of EDI professionals.

The decision between In-House EDI and EDI Outsourcing depends on factors like budget, internal expertise, scalability requirements, and the level of control desired. Organizations should evaluate their specific needs and resources to determine the most suitable approach.

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