7 Most Popular Outsourcing Myths
Outsourcing is a widely used business practice in almost every industry. However, many companies are still unsure whether to outsource their projects. It may be due to some common misconceptions about outsourcing. In this article, we will debunk outsourcing-related myths to give you a clear picture of this solution.
Why is Outsourcing so Popular?
The popularity of outsourcing services is constantly growing, and there is no indication that this trend will suddenly change.
Initially, it was a solution used only by giant corporations. Still, gradually outsourcing evolved, and new types and models of outsourcing were created to meet the needs of all entrepreneurs: small businesses, medium-sized enterprises, startups, and huge companies. The benefits of outsourcing are also extremely universal because the possibility of savings, rational enterprise resources planning, focus on the in-house team on core business, and risk sharing are aspects that are important for every company, regardless of its size or industry in which it operates.
Of course, there are industries in which outsourcing is now an almost automatic solution, such as software development. But there are industries where outsourcing is not so popular yet. However, this does not change the fact that an outsourcing business enjoys an excellent reputation, and each outsourcing service provider tries to provide its customers with the highest quality product.
7 Common Outsourcing Myths
Outsourcing, like any other business solution, is associated with specific difficulties. However, awareness of the existence of problems of outsourcing means that companies that outsource these services can assess how critical the problem is from the point of view of their business and take appropriate steps to avoid problems. The same principle applies to the myths circulating about outsourcing. It is worth getting to know and correcting them because only then can you count on effective and valuable cooperation with an outsourcing partner.
Below is a list of 7 common myths related to outsourcing.
Myth nr 1 - No Control over the Outsourced Project H3
Unfortunately, it is a common myth that outsourcing causes you to lose control over your own project. Meanwhile, the level of control depends only on your preferences. You can be fully involved in every, even the smallest aspect of the project, but you can also delegate complete project supervision to an outsourcing company. The extent to which you will participate in the implementation of the project depends solely on your individual arrangements with outsourcing service providers. You can be informed about the project's progress daily but also choose another option (e.g., once a week or less). The outsourcing industry is highly flexible and adapts to the preferences of its clients.
Myth nr 2 - The Quality of Cooperation with Outsourcing Providers depends on the Country of Origin
Many people believe that the best outsourcing companies are located in the same country or continent. However, research clearly shows that an outsourcing company's location is unrelated to its quality of services.
Of course, it has been assumed that countries like the Philippines specializing in business process outsourcing, and, for example, Poland specializes in IT outsourcing. However, this is a significant simplification because, in Poland, many great outsourcing providers specialize in various areas and types of outsourcing, not only in the IT industry.
In fact, the critical issue is the proper selection of an outsourcing partner with the appropriate experience and attaches great importance to the quality and timeliness of the project.
Choosing the right software partner is a big challenge, but if you know what you expect and what aspects you need to pay attention to, you will definitely make a good choice.
Myth nr 3 - Outsourcing Poses a Threat to Data Security
The issue of data security is crucial for both small business and large corporation. However, it is worth remembering that care for data security is also a priority for every outsourcing company because their prestige, customer trust, and presence on the market depend on it. No one will want to work with a company that leaks data.
In addition, international outsourcing laws protect the security and privacy of personal information. An example is the General Data Protection Regulation (GDPR), which is in force in the European Union. Other international legal regulations are very restrictively followed by outsourcing providers.
Myth nr 4 - Outsourcing is a Solution only for Large Companies
Initially, outsourcing was mainly used by large companies. Still, its development and numerous benefits have made it a solution for every entrepreneur, regardless of whether they would like to acquire an external sales team, build a mobile application from scratch or use the staff augmentation service. Outsourcing solutions are almost unlimited, so all businesses use this solution.
Myth nr 5 - Differences in Time Zones Prevent Good Cooperation
Many people fear that differences in time zones will affect worse communication and cooperation and, as a result, lower the quality of the final project. This is a misconception because outsourcing companies have experience working with clients worldwide and know how to manage communication to satisfy both parties. Many external companies try to adjust the working hours of their employees to the client's time zone so that the client has contact with his external team at any time. Sometimes they also propose that the team work in shifts so that it is available to the client 24 hours a day.
If the issue of time differences worries you, check how your possible external partner deals with this issue.
Myth nr 6 - Employees of Outsourcing Companies are Not Adequately Qualified
This is probably one of the most damaging myths. Outsourcing companies have access to a talent pool worldwide and ensure their employees have the best qualifications. Outsourcing companies acquire new customers thanks to their qualifications and experience. No one will recommend a company that has employees without appropriate qualifications in its ranks. Of course, there are countries where the number of specific talents is more significant than in other places. For example, developers from Poland are considered to be one of the best programmers in the world and have been at the forefront for years. In addition, it is worth realizing that a local company is often unable to attract high-quality employees for short-term projects, unlike outsourcing companies that offer a variety of projects and attractive salaries.
Myth nr 7 - Outsourcing is Not a Long-term Solution
Many companies wrongly perceive outsourcing as a short-term solution that allows for short-term savings. Meanwhile, outsourcing is a highly universal solution, which, depending on the selected model and business needs of the company, works great not only in short and medium-term projects but also in long-term projects.
In addition, long-term cooperation with an outsourcing service provider will bring more benefits to your company. The longer the cooperation is, the better the supplier knows your company's strategy and business needs. Thanks to this, it can apply solutions perfectly tailored to your organization's and your customers' needs.
Outsourcing is a great business solution used by more and more companies. Many myths about outsourcing make some people afraid to use this solution, despite its undeniable benefits to every company. As an offshore outsourcing company, we have implemented successful outsourcing projects for many years. We believe no better solution currently allows companies to gain a market advantage while saving resources and money. If you have additional questions about outsourcing, make an appointment for a free consultation with our specialists.