10 Common Outsourcing Myths

Outsourcing is the practice of hiring a third-party provider to perform some non-core functions. It eliminates the need to do time-consuming and repetitive tasks so businesses can focus on their core business. Aside from affordability, many businesses outsource because it allows them to work faster and more efficiently. It provides businesses with access to specialized talents. Whatever your in-house talents cannot do, you can count on the outsourced provider to do it for you. 

Despite the benefits that it offers, many businesses are still hesitant to outsource some of their tasks to a third-party agency. They are still not sure if outsourcing will work for them. Aside from that, there are also some myths that keep them from trying out outsourcing. These myths may be holding back businesses from hiring a provider for their non-core tasks. In this article, we shall take a look at some misconceptions about outsourcing. 

  1. You Will Lose Control of Your Business
  2. Outsourcing Is Only For Big Businesses
  3. Your Company’s Privacy and Security Will Be At Risk 
  4. Outsourcing is Cheap Resulting To Poor Quality
  5. It Reduces Your Existing Workforce
  6. Outsourcing Is A Hassle 
  7. Outsourcing Lacks in Products/Service Knowledge 
  8. You Lose Control Over Your Project 
  9. Outsourcing Comes with Language and Cultural Barriers
  10. Outsourcing Only Cuts Operational Costs

Common Myths on Outsourcing 

Here are 10 myths about outsourcing that we will debunk in this article. 

  1. You Will Lose Control of Your Business `

This is not true. The outsourcing provider will only handle the specific tasks that you assigned them to do. For example, if you assigned virtual assistant tasks to them, they will only do those tasks and nothing less. You also decide on what resources to allocate to the provider. When you outsource, you will have more time to focus on your core business. 

The key is in finding the right outsourcing partner which is transparent and will keep you in control of your business. The provider will work from your documentation, follow your protocol, and will aim to meet and exceed your KPIs. Outsourcing to a third-party provider can feel daunting but the truth is that it allows you to have more control over your business. 

So with outsourcing, you won’t lose control of your business. In fact, it will give you more time to focus on your long-term business goals. Although the provider may be working half a world away, you still have the same control as though the agency was just down the hallway. 

  1. Outsourcing Is Only For Big Businesses 

This is another misconception. The fact of the matter is that outsourcing is perfect for any size of business. According to a new report by Clutch, 80% of small businesses plan to outsource for the reason that it can save them time and money and they can get access to experts. In addition, small and medium-sized businesses use outsourcing to augment their non-core teams and add US-based employees. 

It used to be this way in the beginning as large companies hired offshore for customer support and manufacturing needs. Things have changed nowadays as many outsourcing companies now provide services to small and medium-sized businesses.  Most small businesses have the notion that contracts run around millions of dollars and they do not have the budget for such. 

Nowadays, outsourcing companies can help small businesses with tight financial margins.  By working with an outsourcing firm, you are increasing your competence level in a cost-effective and responsible way. Through outsourcing, small to medium-sized businesses can have access to skilled professionals without having to add them to your roster of employees.

  1. Your Company’s Privacy And Security Will Be At Risk  

Perhaps another reason you are having second thoughts about outsourcing is because of security and privacy concerns. You may not be confident about sharing company data to a bunch of strangers. Who wouldn’t be with all that financial and confidential information involved? They will have access to your business data which could make you think twice about letting your outsourcing partner handle those data. 

While it is understandable for you to be protective of your important and confidential information, it is wrong to assume that your data will be at risk if you outsource. First of all, the provider also has a reputation to protect and so they would not commit any security and privacy breach in their contract. This is something you should not worry about as long as you work with a reputable BPO provider. 

Most outsourcing companies place data privacy and security as their top priority. They utilize the right security protocols and will likely be more secure. In fact, your data will be more secured with the provider than with any cloud-based storage provider your company might be using. 

  1. Outsourcing Is Cheap Resorting To Poor Quality 

Cost may be a key factor in your outsourcing decision. Hiring an outsourcing provider is truly affordable but you can bank on getting the services of a dedicated and well-trained team. Most outsourcing agencies employ specialists in various fields whose aim is to provide quality services that your business needs. 

Outsourcing costs a fraction of having an in-house team but comes with an assurance of dependability and quality outputs. Outsourcing providers ensure the quality and integrity of the provider’s output minus the overhead cost of having an in-house team. The main focus is to ensure quality and integrity of their output. 

According to Deloitte’s survey covering 2014 and 2016, poor service quality was one of the concerns of the respondents. The 2014 data showed that 48% of the respondents reported poor service quality which reflects that outsourcing industries are now improving and innovating. The best way to reduce low-quality output is to choose the best outsourcing provider. 

  1. It Reduces Your Existing Workforce 

Outsourcing a portion of your operations does not mean you have to completely eliminate your in-house positions. You can use outsourcing to supplement or maximize the current skilled talent that you already have.  Adding more tasks to your current workforce can become overwhelming for them. This could result in job burnout and eventually employee churn.

By outsourcing, you can create new opportunities for your existing employees. At the same time, you can also improve their morale and promote creativity and enhance their overall value to the organization. They can focus on the assignments that you hired them for in the first place. Also, you can assign them to projects that better leverage their skill sets, knowledge, and abilities that truly generate results, 

Outsourcing can also help make your current employees happier and more engaged with their assigned tasks. A happy workforce is a productive workforce. With the outsourced professional doing other tasks, outsourcing can have a major impact on long-term growth. Because they work on tasks they love, you can get the most out of your employees.  

  1. Outsourcing Is A Hassle 

It used to be that outsourcing was seen as a cumbersome process with a complex execution. But that has changed over the years. It is all up to you to make outsourcing hassle-free by choosing the right provider. Once you have chosen the right partner, work with them and take an active part in the process. 

Outsourcing need not be a hassle. You can make it as such by doing your research. Make sure that the company you plan to partner with has similar company culture and shared values. The more effort you put in before finalizing the deal, the more you will avoid making silly mistakes. You will be in a better position to handle unwelcome challenges. 

Be honest with the outsourcing provider so as not to complicate things. Look for an outsourcing provider that puts a premium on building a long-term partnership based on mutual trust and respect. Outsourcing has evolved thanks to new technology and processes. For this reason, you don’t need to think of outsourcing as a hassle anymore. 

  1. Outsourcing Lacks In Product/Service Knowledge 

This misconception may have been due to a customer’s bad experience with a customer care agent who failed to address their concerns. But you cannot hold that against outsourcing companies. You cannot judge the whole industry based on a few negative experiences.

Outsourcing providers invest their time and money on training their employees. They conduct regular language and product training to ensure that the employees they will assign to clients are well-versed in their business. Also, outsourcing companies hire specialists in various fields who deliver customer-focused results that exceed their metrics. 

Still not all outsourcing companies are created equal. Their quality of service is not of the same level. They will understand business products and services and will have a profound way of explaining things and addressing customer’s queries. 

  1. You Lose Control Over Your Project 

Another common myth that prevents businesses from outsourcing is that they are worried that they will lose control over their project. The truth of the matter is that the outsourcing company will update you on the status of your project. In addition, they will provide you with comprehensive reports. 

Furthermore, the outsourcing company will constantly interact with you using communication and collaboration tools so you stay in the loop and have full control over the project. The outsourcing provider will fully involve your business to the extent you want.  

When working with the outsourcing provider, they will define their role and responsibilities in the project. This will help them identify their roles and function in your business. This will help ensure that you will still be part of the process. 

  1. Outsourcing Comes with Language and Cultural Barriers  

Most outsourcing companies are found in offshore destinations which bring about concerns on language and cultural differences.  Advances in technology have led to the world becoming more integrated than ever before. But language and culture do not have to be a problem. It all boils down to knowing which country to focus on when considering outsourcing. 

The good news is that language and cultural challenges can easily be resolved. Look for an outsourcing company where people can understand and fluently speak English. In addition, they should also have experience working with companies in English-speaking countries. There are many countries like the Philippines that have developed a good experience in working with Western countries. 

Outsourcing companies have learned to adapt to these language and cultural barriers. So choose an outsourcing agency that has long embraced the language and cultural differences and integrated it into their company culture. 

  1. Outsourcing Only Cuts Operational Costs

Another common misconception about outsourcing is that it only helps cut operational costs. This is not true. More than the operational expenses, outsourcing can also help you reduce costs on labor and wages. When you outsource, you can also save on the training and recruitment of your employees. It will be your outsourcing partner which will handle that aspect. 

In addition, you will also save on the cost of benefits like health insurance and government-mandated benefits. This means that you don’t have to carry the burden of providing these employee benefits and rights. 

Lastly, outsourcing will help you save on the costs associated with building a team. You get an assurance that you will get top talent at a lesser cost. Your only expenses will be on your in-house team. 

When done right, outsourcing can deliver a wide range of benefits. Debunking the different myths about outsourcing is the first step towards being able to enjoy its numerous benefits.  

Why Outsourcing with airisX Makes Sense? 

Outsourcing allows you, as a business, to focus on your main competencies and operations and forget the hassle of sharp learning curves when the task falls outside your company’s core area of business. 

By outsourcing to a leader like airisX, you will be able to scale up quickly by getting the right resources, processes, and technological infrastructure. No matter what your scaling requirements are, airisX will give you the best optimized solution and you will be able to focus on delighting your customers. Your back office operations will be simplified, giving your users a high-quality experience.

The most important advantage of working with airisX is that we enable you to stand out from your competition by providing you with a sharply differentiating customer experience and best practices, which is the result of working with some of the world’s biggest and most disruptive companies. 

For your outsourcing needs, get in touch with us at contact@airisX.com and we will get back to you with solutions tailored to your needs. 


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