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The Pros and Cons of Both In-House Shredding and Outsourced Shredding

Posted by Capital Shredder Corp on 1/20/2020

Customer details, medical records, HR forms, financial documents, proprietary files- all contain confidential information. Safeguarding your customers and client’s data is a top priority, but how do you maintain the safety of the classified documents once you no longer need them?

Professional document destruction and paper shredding is the most secure and reliable disposal option available. It provides peace of mind as well as reduces any liability involved with legal compliance.

Having said that, there are several federal and state laws and industry-specific regulations such as GSA (government), GGGLAB (bank), and HIPAA (medical) that require businesses and companies to follow specific protocols when it comes to disposing of sensitive data and documents.

You can choose between outsourced and in-house shredding options; however, choosing the right method can be a difficult choice to make.

This guide gives you more in-depth insights into the difference between the two shredding methods to help you make an informed decision.

Factors to consider before you make the call

  • What’s the volume of documents you need to shred, and after how long?
  • How confidential are the documents you need destroyed?
  • How many employees will conduct the task, and how much time will be lost away from revenue-generating activities?

In-house Shredding

There are a variety of options to choose from when deciding on the ideal method to shred your company’s critical documents. Most companies begin with purchasing a high capacity shredder and employing a reputable and diligent employee to handle the task.

Companies today are investing in high security paper shredders with level 6 shredding capabilities. This ensures that all classified documents are not just thrown out, but rather cut into pieces that make it virtually impossible to piece back together.


  • You incur a low cost per every shredding session.
  • All documents are handled within your property, so you know everyone who accessed the confidential materials before being destroyed.
  • No document is left unattended, so there is no risk of exposing personal information to others.
  • You can supervise as the records are being destroyed.


  • High-volume shredding can be time consuming, especially if you are using a low capacity shredder.
  • You incur the upfront costs of purchasing and maintaining the paper shredder.
  • You may need to supervise in-house shredding, especially when it is done by temporary employees.

Outsourced Shredding

Outsourced shredding is another option, especially for businesses with small shredding quantities. It is more popular and cost-effective as well for organizations situated in city centers and in need of regular shredding services.

Outsourced shredding usually involves a cargo truck visiting your premises to collect and cart all unwanted documents, which are then transported to secure facilities with industrial shredder machines capable of level 6 shredding.


  • You protect your business from identity theft, and you are issued with a Certificate of Destruction once the documents are shredded.
  • Since the process takes place in a facility with high capacity level 6 shredders, all the papers are mixed with other documents. This acts as an added security against the documents being recreated.
  • Outsourced shredding may help cut down on the hours spent in the level 6 shredding station by employees.


  • Unpredictable challenges are bound to happen. For instance, during the transportation of the documents, the vehicle can break down, or an accident can occur. At this point, you have no control over what happens to the classified papers.
  • With this option, documents are sometimes kept in a warehouse until they are ready for shredding. During this period, you cannot be sure who has access to the documents or how long they are left unattended.
  • Some outsourced level 6 shredding service providers assort the documents before shredding commences to enhance paper recycling. This means your confidential information is exposed to different individuals.
  • Since you do not watch and witness your documents being destroyed, it means you have no visual evidence that all your documents were properly or securely shred.

Regardless of the type of documents you handle, it important that they are disposed of properly. Always ensure that they are completely shredded to avoid any chance of them falling into the wrong hands.

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