Why Companies Outsource? Common Myths Vs Facts
Infosearch BPO is a 19 years old, ISO certified, global outsourcing company. We provide various annotation, data management, bpo, and call centre services. Outsource your business services to Infosearch and concentrate on other tasks of your business. Contact us right away to discuss your requirements.
Due to outsourcing becoming a strategic priority in organizational management, it has several myths. Here are some common myths about outsourcing and the corresponding facts:
1. Myth: Outsourcing is Only About Cost Control
Fact: Despite cut cost as one of the key reasons that propel outsourcing, other reasons include access to specialized skills, flexibility, and enhanced timely market amongst others. Outsourcing allows business localization on crucial processes where it is stronger and delegating the rest to other companies, where these things may be the priority, IT backup, personnel management or helping customers.
2. Myth: Outsourcing Leads to Poor Quality
Fact: Lack of quality is one of major risks tied to outsourcing but all top outsourcing companies invest significantly into quality assurance. Most of the providers have qualified workforce, strict measures on quality assurance, and excellent technology to enable high performance. The fundamental to achieving and sustaining quality in outsourcing is the choice of right partner and ensuring realistic expectations right from the word go.
3. Myth: Outsourcing Is for Large Companies Only
Fact: Outsourcing is in vogue and companies of all fractions practice it. Small businesses are usually the most benefited from outsourcing due to the ability to leverage resources and skills, which are out of their reach otherwise. Outsourcing also provides the ability for smaller companies to expand much more quickly and spread out risk within a smaller internal team.
4. Myth: Outsourcing Causes Job Losses in the Home Country
Fact: Some forms of outsourcing, though, can provide work shift though it can cause job opportunities in one place or another. Some companies keep their key team in sourcing and outsource those common repetitive or specific jobs which help in-house teams to concern much more significant projects. This eliminates the need for employees to engage in tasks that can be outsourced and free up the company to create a growth that creates job opportunities in higher-end positions.
5. Myth: Outsourcing Compromises the Security of Data
Fact: Outsourcing provides ensure data security since they use organized security measures as well as security measures in protecting the data. For the most part, most of the provider’s honor data privacy laws like GDPR, ISO compliance, and business vertical rules and regulations. To further reduce the security risks deposited companies can work with reliable providers, make the principles of data handling clear, and conduct check-ups periodically.
6. Myth: Why Outsourcing Does Not Work — Communication Problems
Fact: It is very normal to encounter communication barriers in any type of team let it be an internal or outsourced team. Outsourcing providers also teach their staff members how to effectively communicate with one another and use the tools necessary for project management and holding meetings at fixed intervals. On the recommendations, companies can avoid these problems by selecting partners that have a good command of the English language where possible, and more importantly, partners that operate within the same time zones.
7. Myth: Only Non-Core Tasks Can Be Outsourced
Fact: Often they outsource the non-strategic activities, yet they may outsource crucial activities such as software development, product designing and research and development if the company lacks the specialized skills. Indeed, most sectors subcontract professionals who help a company remain relevant in its central products without overwhelming in-house talent.
8. Myth: Outsourcing is the New Generalized Business Strategy
Fact: Outsourcing solutions are very flexible. Outsourcing relationship can be as unique as the requirement of a company; companies may consider project base outsourcing, team outsourcing, or strategic alliances. Some organizations keep outsourcing as a percentage of their operations profile while others rely more on outsourcing.
9. Myth: Outsourcing: It’s Hard to Control Projects
Fact: When it comes to outsourcing projects, there are recommended standards that once followed will make the process simple and easy. Most outsourcing suppliers employ proficient project management systems that let the client observe the implementation process, garner timely information and manage outsourced work.
10. Myth: Outsourcing Hinders Innovation
Fact: Outsourcing is often said to reduce innovation but it might come as a surprise to many that it can in fact improve it. It is always easier, and sometimes possible more efficient, to find an external provider for certain requirements since they can develop their own unique perspective and are likely to bring more sophisticated tools and approaches, gained from working in different industries. That outside view may be beneficial in forcing corporate entities to think outside the box and adapt in terms of growth and competitiveness.
11. Myth: There other hidden costs associated with outsourcing
Fact: Outsourcing, if done right, can be extremely cheap. As for the possible problems, one should mention that the scope and expectations from the project should be discussed to acknowledge any additional costs. The present day outsourcing arrangements offer cost predictability through fixed cost or service delivery level –based pricing structures.
12. Myth: Outsourcing diminishes the levels of customer satisfaction
Fact: Thus, many firms source out their customer service, and enhance their satisfaction levels due to availability of round the clock, material and skilled service provision from third-party suppliers. Outsourcing is a way to satisfy customer’s needs with a higher scope and for more extended periods, which in turn will create better service.
Conclusion:
Not limited to cost efficiencies, there are other more outsource benefits such as; increased access to skills, enhanced productivity, and flexibility. Outsourcing is a strategic business decision that relies heavily on partnership with the outsourcing vendor, setting realistic expectations, and communication to make viable business and to ensure its benefits are optimised and drawbacks guarded against.
So, don’t worry about the myths and start outsourcing your business tasks to save your time and money and to get professional help for 24x7. Contact Infosearch and discuss your queries.