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Promotions to high positions should be given to employees inside the company and not to somebody outside the company or new hiring?

In companies, promotions to high positions should be given to employees inside the company and not to somebody outside the company or new hiring. Do you agree or disagree? 

It is a highly debatable issue whether promotions should be given to employees from within or new hiring should be done. The given statement proposes to in-house hiring. It is necessary to look at the pros and cons of promoting from within the company before forming an opinion. 

There are many benefits to hiring from within. To begin with, the employee is familiar with the company. No special training needs to be given. The person knows about the general working of the business. Moreover, employees feel that they will be rewarded for their extra effort and hard work.
So, an employee who has been tested and excelled at a lower level can be shifted to an upper level.  
On the other hand, there are some disadvantages of hiring from within. Sometimes, the established policy of hiring from within makes some employees feel that they are entitled to promotion just because they have spent time with the company. Secondly, this can hurt the feelings of other employees who are not promoted. They may feel that they deserved the position better.  

In my opinion, a manager or business owner needs to remember that all the hiring decisions need to be made with the idea of strengthening the business. This means that sometimes a person from within can be moved up and sometimes a highly qualified person can be hired from outside.  

To put it in a nutshell, I pen down saying that, each promotion needs to be done on a case to case basis and at all times the HR manager needs to do what is in the best interest of the company.