Outsourcing Myths

Many people have heard of outsourcing, but few are aware of what it entails. People made assumptions about outsourcing based on what they had heard from others. More myths about how risky or unhealthy outsourcing is for a business are created by biased perspectives.

There always are two sides to the coin. So we should break down the absolute greatest outsourcing myths — please take a look.

Myth 1: It’ll save money but compromise quality

Ongoing research shows that the essential goal of outsourcing is no longer cost reduction. It hugely expands the quality of client care. For the last years, the industry has turned into a powerhouse of delivering qualified trained professionals.

Brands understand that outsourcing doesn’t mean they are compromising the quality — they are really upgrading it. Plus, this alternative approach to delivering customer services can bring stunningly better outcomes than a traditional one.

Myth 2: There is no control over an outsourced team

Since business process outsourcing implies that the employer won’t be available in the remote office, there is a myth that they have zero control over the project. In any case, while you’re recruiting a proper outsourced company, you reserve all rights to deal with your own customer services any time you wish.

Collaboration with the right supplier gives you access to dashboards, core metrics, and other parameters used to measure the progress of business processes. You can likewise request a definite analysis of delivered services and customer feedback.

Myth 3: The language barrier is an issue

The main places of outsourcing aren’t situated in Western Europe, the US or Canada. Consequently, the normal complaint about outsourcing is that the abroad specialists will not have the necessary language skills.

The myth is busted. For instance, Estonia, Ukraine, Russia and Belarus are one of the most well known outsourcing destinations. Why? Since there you can observe both reasonable costs and profoundly qualified customer support representatives with amazing English

Myth 4: It’s only for huge companies

Despite the fact that outsourcing companies prefer larger clients, they do not turn away small enterprises. The biggest customers of outsourcing vendors are small and medium-sized businesses.

Because of the cost benefits that outsourcing services can provide for small and medium-sized businesses, the outsourcing business does not discriminate on the basis of size. Small and medium-sized businesses are expanding businesses. Outsourcing companies like to work with high-potential small and medium-sized businesses. Why? It’s because they want to be these rising businesses’ long-term service providers.

Myth 5: It will risk your company’s privacy and security

When considering outsourcing, writings on the subject often highlight privacy breaches. Many people believe that outsourcing companies can see through a company’s genuine image at first glance. It may sound frightening, but this is the worry that most businesses have when outsourcing.

It’s a widespread concern that if you outsource software development to a third-party, the code will be stolen, disclosed to an outside entity, or you won’t have complete IP rights.

Trust is the foundation of any successful and long-lasting commercial partnership. Outsourcing companies’ work by winning their clients’ trust, which they may do by being honest and trustworthy.

Of course, outsourcing companies strive to remain in business. Privacy protection is now a point of contention among outsourcing companies. Businisses shouldn’t be concerned about this as long as they hire the correct outsourcing provider.

Only 23% of respondents in a Deloitte survey in 2016 claimed that cybersecurity concerns influence their outsourcing decisions. This finding indicates that more businesses trust their outsourcing providers to keep their data secure.

In practice, an outsourcing service provider forms legally binding contracts with a company, such as a non-disclosure agreement (NDA), which prevents the project from being disclosed to any third parties and grants the business exclusive product rights. As a result, companies do not have to be concerned about obtaining full ownership of the product.

Myth 6: It’s dishonest

Outsourcing has become a nasty term in many Western countries, almost synonymous with job loss — yet there is also concern about the wellbeing of outsourced workers. People are concerned about the working conditions of the outsourced workers, as well as the poor salary they receive. This is a prevalent misunderstanding about outsourcing, and nothing could be further from the truth.

In comparison to other members of their society and the economy as a whole, the outsourced worker of non-western country is well compensated. They are frequently paid 100 percent to 200 percent more than persons who work in identical but non-outsourcing jobs. In addition, when it comes to law and policy, the government is normally quite protective of its workforce and very pro-labor.

The outsourcing business provides a pleasant working atmosphere, excellent facilities and training, and a promising career path. In comparison to their living expenses, the money they make is a respectable wage.

Myth 7: It is not a long-term solution

People believe outsourcing is only for the short term since they see non-value-added work transferred.

Outsoursing companies are looking for long-term clients. Long-term clientele guarantee a steady stream of revenue and cash flow. Companies should seek long-term contracts with outsoursing companies from the perspective of their clientele. Outsoursing companies can thoroughly comprehend the company’s structure thanks to long-term partnerships.

Outsoursing companies can come up with solutions that are aligned with the client’s ideas by studying the client’s business goals, strategies, and vision. Outsoursing companies, on the other hand, are educated to provide business solutions that are tailored to the needs of their clients. These business solutions will be more accurate and reflective of the client’s ideas as a result of a long-term relationship.

Establishing a long-term relationship with outsoursing companies can improve the quality of outsourced services, benefiting both sides.

Myth 8: Outsourcing takes longer than developing in-house

Businesses frequently believe that completing a project with their own staff will take considerably less time than completing the same with an outsourced service provider.

Experts in their fields, outsourcing service providers are. An eComm development outsourcing company, for example, has a team of qualified and experienced developers who can swiftly comprehend the clients’ needs and design and deliver high-quality solutions.

If a company wants to develop an eComm website in-house, it must first invest time and money in hiring skilled developers, following which the development process may begin. As a result, the overall time spent will be greater than the time spent by an outsourced service provider.

Myths about outsourcing debunked

Outsourcing has become a major role in the growth and development of most companies throughout the world, yet its image has been tainted by myths and misconceptions. Outsourcing has both advantages and disadvantages. Companies who desire to outsource, on the other hand, should take advantage of outsourcing services.

It’s important for businesses to understand that outsourcing is a decision. This is not a foregone conclusion. Before outsourcing or employing a third-party adviser, companies should conduct a cost-benefit analysis. However, one issue remains in these changing times. Outsourcing companies should be more innovative in order to provide better services to their clients.

--

--

--

Magento — Magento experience agency / www.mygento.com

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Why Some Lux Brands Will Continue to Fail Based on Changing Ideas Around Success

Transforming businesses in the connected world

How Kip Got To 1.5M Users and 500k Transactions in 1 Year

Your Enemy Is Not Uncertainty, But Complexity

Interview Of The Week: Michael Webber, ENGIE

Portfolio Construction 101: Laying the Foundations for the Future of Construction :)

An Accelerating Industry

Netflix’s Oscar win & The week in goats — MRY

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Mygento

Mygento

Magento — Magento experience agency / www.mygento.com

More from Medium

A Clarion call to family business owners

Lots of advice, not a lot of tactics

Business Strategy with SMI Financial Coaching

How does your business manage crises?