Top 6 Misconceptions About Outsourcing

Outsourcing Misconceptions

Outsourcing is not something new, yet there are still myths and misconceptions surrounding it. Probably because of uninformed online sources and a few cases of failed attempts, outsourcing has gained a negative reputation. Given all these misconceptions on outsourcing, what’s the truth?

We listed down the top 6 myths and misconceptions about outsourcing that are holding you back from trying it out and propelling your business growth. Along with these outsourcing misconceptions are the truths behind them that you need to know to help you make informed decisions. Check them out:

Misconception 1: Outsourcing is only for large or well-established businesses

While indeed the “big business guys” engage in outsourcing easily, that doesn’t necessarily mean small to midsize businesses (SMBs) aren’t as capable! In fact, outsourcing is one of the key strategies that help SMBs scale efficiently without draining their pockets.

Because most SMBs are made up of less than 20 people, peripheral tasks take up too much time and effort, especially for the owners. Through outsourcing, small business owners get the much-needed time and attention to do tasks and functions related to their core business, such as business development, customer support, and product innovation.

This misconception is also misleading; there already exists multiple outsourcing models and solutions to cater specially to SMBs. Whether it’s a dedicated staff or a practical shared resources solution, it’s all out there waiting to help drive high quality performance to your business.

Misconception 2: You lose control of your business when you outsource

Concerns on business control and data/information security are preventing many business owners from moving functions to an outsource service provider. While these concerns have merits on their own, the keywords to remember here are significance and value.

The significant amount of control you wish to have depends on the value of the task. To determine this, map out the processes/tasks within your business and identify which ones have high value (i.e. those which affect customers and business development) and ones with low value (i.e. back office and admin tasks: payroll, marketing, finance and accounting). Non-value-adding tasks should be handed over to outsource service providers and value-adding ones are to be kept in-house.

You don’t lose control when you outsource; you only free up more time and focus.

Misconception 3: Cost cutting only affects operational costs

Yes, operational costs are cut down when outsourcing, but it isn’t limited to that! Outsource service providers give you experts/specialists to be on your side and do tasks for you. These experts don’t normally come to small businesses because of overhead costs, but they will be readily available to you once you outsource.

Outsource service providers have access to a wider, global talent pool, being based in various top countries for BPOs such as the Philippines. This makes it easier for these BPO companies to give you the resource you need while being assured your business is in good hands.

Misconception 4: Outsource service providers would hire just about anybody!

In the 3rd misconception, we mentioned that outsource service providers attract the best talent. This means they are university-educated business professionals who are qualified and career-focused. BPO companies carefully screen candidates to make sure they’re right for and capable of doing the job.

Outsourcing to the Philippines means having access to skilled and trained talent as universities produce thousands of graduates every year. These graduates are also proficient in the English language; thus, communication is easier – leaving very little room for misunderstanding.

Misconception 5: Output won’t be as excellent as when doing tasks in-house

Your outsourced team is simply an extension of your in-house team. Whatever quality you maintain in-house is transitioned to the offshore team. Training them will be on you, but qualified trainers from service providers will be with you every step of the way. The quality of output from your outsourced staff is highly dependent on your commitment to coach them.

Misconception 6: Results from outsourcing are only short-term

While some results are immediate and can be seen quickly, most driven results in your business are seen in the long run, even after opting to go onshore after outsourcing some functions. Because offshoring requires documenting key processes in your business and put in performance indicators, going on your own won’t be as hard.

You’ll also be able to identify pain points within your business and address them properly, helping you add more value to your service offering/s. Short-term results from outsourcing contribute to long-term goals you may have by equipping you with the tools and knowledge you will need to ensure seamless operations.

The Truth About Outsourcing

The truth is that outsourcing comes with its challenges both for business owners and service providers, but these are nothing a good offshoring plan couldn’t foresee and deal with. Those misconceptions mentioned above are not without warrant, but these shouldn’t be true when outsourcing is done right.

We’re all about making your offshore journey a success. Talk to us to get started.