One of today’s most common business practices is also one of the most contentious. While many are aware of its advantages, many are also very dubious about its efficacy and success rate. Outsourcing rumors started to spread like wildfire as more businesses adopted the new workplace and decided to hire remote workers.
When a business owner is really considering outsourcing services to scale their organization, it can be challenging to cut through the white noise as there has been a lot said about outsourcing mainly based on biased views and misconceptions about the entire process.
What is Business Process Outsourcing (BPO)
The concept of business process outsourcing (BPO) has been tainted by rumors and falsehoods. People create these prejudiced yet often ignorant perceptions of BPOs when they speak negatively about it. People are quick to trust rumors and doubters and frequently take their information from dubious sources that are biased and misinformed.
The World Wide Web is frequently thought to be the main source for this issue. Online forums have a lot of discussion on outsourcing, however, it is preferable to confer with professionals to fully understand the concept.
Despite the misunderstandings and myths surrounding BPOs, this sector is still thriving and has room to expand. The outsourcing sector’s global market share in 2014, grew to $104.6 billion while in 2016 the global market share was at $76.9 billion. Although the trend experienced fluctuation from 2015 to 2016, the solid foundation that outsourcing businesses established still stands strong and sturdy.
Here are the Top 5 Myths and Misconceptions About Outsourcing
Myth #1: Only large businesses can afford to outsource
One of the most common misconceptions regarding outsourcing is that only large, well-established companies can afford it. That is false!
The truth is, small and medium-sized businesses (SMEs) rely on remote talent just as much as large enterprises do for technical jobs. SMEs collaborate with Remote Staffing companies to boost overall effectiveness and use cutting-edge technologies!
According to data gathered by Clutch Small Business Survey in 2021, 80% of small businesses intended to hire remote workers in order to optimize their operations. The poll suggested that small firms intended to outsource the following functions:
- 27% – IT functions
- 23% – finance operations
- 21%- legal services
- 20% – digital marketing
- 18% – development tasks
- 10% – human resource
Myth #2: No control over your projects
Another widespread misconception about outsourcing is that you lose complete control over the outsourced operation. In the same way that you would hire an internal team to work out of your offices, outsourcing providers are recruited to carry out the tasks you assign them. Your chosen service providers shouldn’t be in a position of power or influence within your company.
For instance, if you outsource to a software development business, they will carry out the assignment while regularly informing you of their progress. You continue to make the final decision, which is under your power. You can accomplish this without getting bogged down in the nitty-gritty of project management.
Choose an outsourcing partner who puts you in control if you want to make sure of this. They should:
- Work in accordance with your policies and protocols.
- Work to achieve the metrics or Key Performance Indicators (KPIs) you specify.
- give you regular reports and performance updates.
- Maintain communication with you and your team by using collaboration and communication tools.
- Setting up a solid outsourcing agreement will help to ensure that this occurs. It could cover the scope of the outsourced services, the cost, and the length of the contract.
Myth #3: Low prices for low-quality output
Some people think that outsourcing will lead to subpar services. However, if you examine the outsource provider prior to acquiring their services you probably won’t have problems with quality control.
To guarantee that you will be pleased with their job, you might start by looking into, screening, and researching reviews to see whether they meet your company’s capacity requirements, workplace culture, and industry experience. Numerous top-notch outsourcing businesses offer outstanding services and top-notch finished goods.
Myth #4: Language and cultural barriers make things complicated
Businesses frequently fear dealing with linguistic and cultural obstacles, particularly when outsourcing to other countries. This is not always the situation. Because of increased globalization and integration, outsourcing corporate processes is no longer a novel concept.
Numerous outsourcing service providers cater to clients from around the world, particularly those from North America, Europe, and Australia. The majority are committed to collaborating well with their Western clients and have solid English skills. Additionally, outsourcing firms frequently employ multilingual workers in order to better serve their clients’ communication demands.
Hotspots for remote employment like the Philippines are well-adjusted to their international employers’ cultures. One benefit of hiring Filipino employees apart from being the third largest English-speaking country in the world, they share cultural similarities with the majority of Western nations having been a colony of Spain for more than 300 years and under American rule for half a century. Moreover, they can easily adjust to various time zones and changing work schedules!
Myth #5: Huge risk of data security breach
Businesses may be concerned about outsourcing due to data security issues and IP theft. It could be difficult to prohibit because different countries have varied regulations regarding these. Outsourcers prioritize preserving data security and intellectual property as clients need to trust in them to gain their professional reputation.
International outsourcing laws are also in place to safeguard people’s privacy and data security. An illustration is the General Data Protection Regulation (GDPR), which is in effect for the European Union. The majority of outsourcing businesses in the EU or that work with EU clients abide by this rule. Non-disclosure agreements and other conditions are frequently included in outsourcing agreements. (NDAs). These are enforceable safeguards against data leaks and intellectual property theft.
Key Take Aways
The majority of businesses throughout the world now heavily rely on outsourcing for growth and development. However, there are many myths and misconceptions surrounding this practice. Outsourcing, like any business strategy, has advantages and disadvantages. Before outsourcing work or bringing in outside counsel, businesses need to conduct a cost-benefit analysis. With the changing times, companies should embrace innovation to provide better services to their customers. At EVS, we provide nothing but tried and tested virtual staffing solutions to keep you ahead of the game. Give us a call and find out how we can help you get started toward gaining cost-efficient and reliable outsourced services.