7 Common IT Outsourcing Myths & Misconceptions

By admin23 January, 2024Write a Comment

In today’s fast-paced and competitive business environment, companies are constantly seeking ways to streamline their operations. This has led to the rise of outsourcing, which provides businesses with multiple perks, such as reduced costs, improved efficiency, and a wider talent pool.

But here’s the rub as outsourcing has grown, so have the misconceptions that surround it. If you’re pondering whether outsourcing is the right choice for your business, worry no more! In this article, we’re going to debunk popular outsourcing myths. Read on!

Myth #1: Only Big Businesses Outsource.

Outsourcing is often associated with big companies, so small-medium businesses (SMBs) may feel alienated from the advantages of outsourcing services. The truth is, there are many benefits SMBs can gain from outsourcing. These include:

Better control of business costs: Your company can save time and money by delegating business tasks to experts who can get the job done more efficiently.

Improved productivity: Small and medium-sized companies have fewer internal human resources. If these are used to train new employees instead of dealing with tasks that help the company grow, this can hurt the company’s sales performance. By working with an outsourcing provider, your employees can focus on what they do best and increase their efficiency, productivity and job satisfaction in the long term.

Focus on core business: Outsourcing allows you to take the pressure off your company by delegating tedious, non-core tasks. Hiring an outsourcing provider allows you to focus your resources on more important, revenue-generating tasks.

Myth #2: Outsourcing Equals Loss of Control.

Outsourcing providers only work on the specific tasks given to them—no more, no less. A business contract defines all terms and conditions of your partnership with your outsourcing provider. Hence, without your permission, your outsourcing provider cannot work on other aspects of your business apart from those specified in the contract.

Look for an outsourcing provider that values transparency and exhibits good communication skills. These qualities will enable you to see if your outsourcing projects are being handled based on your specific requirements.

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Myth #3: Outsourced Work Means Poor Quality.

The goal of outsourcing providers is to ensure the quality and integrity of their outputs for clients through their services. For example, if you are an accounting firm, hiring outsourcing financial accountants who are experts in the field allows for accurate outputs and efficient accounting processes within your organization.

Running a business involves situations that require the expertise of professionals to get the job done. By outsourcing to experts, you can be assured that the tasks are performed efficiently and the outputs meet quality standards.

Myth #4: Language and Cultural Barriers are Deal Breakers.

There are countless factors that lead an outsourced project to failure. And such obstacles as cultural differences, time zone differences, language barriers, or something else are not necessarily the primary cause for your setbacks. Thanks to technological advancement, communication and collaboration tools are brought in to solve the mentioned problems. 

In addition, outsourcing service providers are well experienced in handling such issues, so they often have best practices in place to ensure seamless collaboration and mutual understanding between inbound and outbound teams. That’s why it is absurd to blame cultural differences or similar things for your failed outsourcing experience or poor-quality products.

Myth #5: Outsourcing is just about Saving Costs.

This is another common outsourcing myth that relates to costs, and you can agree that it is founded based on the economic effects this business strategy has to offer. Although it is true that utilizing outsourcing services or contracting with an outsourced team is a means to control costs, there are a lot more impacts to acquire than just cost reduction.

While more than 59% of global companies rely on outsourcing to cut operational or development costs, 26% of small businesses (could be tech startups or midsize businesses) do so to get expert advice and support. Others seek external aid to offload the in-house teams and have them concentrate on core business activities by hiring a dedicated team or augmenting skilled talent. At the end of the day, each and every company has its own reasons for seeking outsourcing services aside from cost-savings.

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Myth #6: Security Risks are Inevitable When Outsourcing.

The next important issue that every business owner worries about when outsourcing is the security of the company’s privacy and its customers’ data. This is a practical concern as the outsourcing process involves working with third-party companies and their employees who have access to your confidential information. However, this is a misconception.

Data security is important to you and also to the outsourcing service providers. These companies will do their best to protect your data and prevent security breaches. This is not a favor, but a duty that any credible outsourcing provider must fulfill. When signing an agreement, they will also include a clause requiring them to adhere to the highest standards of data protection laws. Therefore, you can rest assured that your data is in safe hands when outsourcing.

The best thing you can do now is to carefully vet your service provider and make sure they have secure data processing procedures in place.

Myth #7: Outsourcing Takes Longer than In-house Development

In general, the time needed to complete a project varies from case to case and depends on the requirements, project scope, complexity, available resources, team size, etc. There is no proof that outsourcing takes longer than in-house development and vice versa.

In some cases, if the outsourced teams are more experienced and have a lot to offer with their resources, they can complete your project faster than an average in-house team. The same is true if you have excellent in-house staff with extensive knowledge and experience in project management who may be able to do a better job than the third-party provider.

Conclusion

Despite the myths surrounding the outsourcing industry, more and more companies are outsourcing their projects to increase revenue, reduce labor costs and improve business productivity and efficiency. As long as you work with a reliable outsourcing partner, you can maximize the business benefits of outsourcing.

If you need help growing your business, do not hesitate to find a reputable outsourcing service provider to take care of your needs. Consider working with BKPlus Software, a Vietnamese software outsourcing company that offers a variety of benefits that can significantly contribute to a company’s success. Contact us today to learn more about our customized business solutions!

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