Outsourcing Myths You Need to Stop Believing

1. Outsourcing Myths You Need to Stop Believing Outsourcing is a form of management that is often used by companies to get more done but with fewer resources. The idea behind outsourcing is that it allows employers to focus on their core competencies while the outsourcing company focuses its efforts on the work. But in spite of all these benefits, outsourcing has received a lot of flak from those who say it costs jobs and does not benefit the US economy. However, numerous studies have shown otherwise and show that rather than threatening American job security, outsourcing can help create job opportunities for people who were previously out of work or underemployed in various parts of the country. In this article, we’re going to talk about the most common outsourcing myths & misconceptions that you need to stop believing. Here are the 6 myths you need to stop believing about outsourced jobs: Outsourcing is too expensive Outsourcing is often too expensive. This belief is based on the myth that outsourcing companies in other countries have access to cheap labour and underdeveloped infrastructure. It's often said that outsourcing isn't always cheaper than performing a function in-house. But is this true or do we just not understand how to compare correctly? Comparing apples with apples gets you the right results, and more importantly, any kind of outsourcing can be more cost- effective than doing it yourself. You just need to know how to find out whether your savings will pay for your costs vs simply being an expense reduction exercise or which benefit best suits your needs. It's not all about saving money. It is, however, important to get a realistic idea about exactly how much money you will save and whether this will cover your costs before deciding to outsource a particular function. Outsourcing isn't always cheaper than keeping things in-house, though in many cases it usually will be.

2. You can't outsource everything Outsourcing is becoming an important factor in corporate management strategies and yet there are still many misconceptions about what it can and cannot do for companies. The outsourcing industry is worth at least $150 billion a year, with a growth rate of 40%. In the past 5 years alone, the offshore outsourcing market has grown 250%, from less than USD$3 billion per year to more than USD$10 billion. You can outsource almost everything, but thinking that you don't need a team on your home soil is something that I personally wouldn't recommend. I call this the "lone gunman approach" because you will be doing all of the work yourself with no backup plan and without anyone to bounce ideas off when they aren't coming together. There are no good outsourcing companies that will provide quality service Offshore outsourcing companies seem to be a dime a dozen these days. With so many options available, it can be really confusing for you as a potential client to choose the right company for your outsourcing needs. The question is: What makes these two categories of customers different? Obviously, both sets of customers had high hopes when they first approached their offshore service provider; but then why did only one category end up being satisfied with the services rendered? There is no good — or bad — offshoring company/provider. Each outsourcing firm has its unique strengths and weaknesses — just like any other vendor for services in any industry; this includes companies that offer products as well as firms that deliver service solutions. Unfortunately, many people seem to use blanket labels when describing them, e.g., "offshore outsourcing is better than local outsourcing," which is not necessarily so; there are cases when making your business processes reside outside a country could actually be detrimental to your bottom line. There is no good — or bad — outsourcing vendor, i.e., company/provider that can deliver quality service 100% of the time; again, this holds true whether we are discussing a firm that provides offshore or domestic outsourcing services.

3. It's impossible to find qualified people who are willing to work Offshore outsourcing to countries like the Philippines can bring many advantages, especially for small businesses that need help running various tasks. From customer support to basic accounting functions and more, business owners are able to take advantage of inexpensive offshore outsourcing services that allow them to grow their business quickly. While there are many reasons why a company might choose this type of outsourcing service, the main reason is cost savings. The fees charged by outsourcing firms in different countries vary widely from country to country. In addition, because workers offshore earn less than similar workers in other industrialized nations, the rates they charge for remote assistance tend to be much lower than what you would pay someone locally. People in developing countries often charge lower fees because wages generally run 3-10 times lower than what you would pay in the U.S., Canada, Australia and other more developed countries. Like most business expenses, labour costs represent the largest expense in any company's budget. So, offshore outsourcing can help a small business avoid some of its biggest overhead costs while making it possible to handle additional projects that could lead to greater revenue [if programs are set up correctly]. Even though you will be outsourcing your work to another country, that doesn't mean there isn't room for growth opportunities with your own staff if you have one. For example, when you outsource customer support work to the Philippines (or another low-cost country), your company can focus on developing higher-level skills among existing employees as well as adding better systems and resources -- enabling them to handle more complex tasks and projects in the future. The person will be less loyal if they're working remotely There's a myth about offshore outsourcing (or involving freelancers) that even though the person is on the other side of the world, it makes no difference. The reason given is that people work for money and if they have to travel to get paid, they can do so. But remote workers are actually more engaged because there's no way for them to slack off. If hired locally, one has the tendency to feel like an employee rather than a contractor or freelancer while working at home or in cafes and restaurants which results in higher productivity levels. In many cases, people take advantage of their environment by being less productive and

4. not devoting time to what needs to be done; but because remote workers get paid regardless of their performance, they tend to be more productive. It's true that employees who are outsourced or working remotely can take advantage of their location; but it doesn't mean they will slack off and not give one hundred percent. It all boils down to motivation and choosing the right people for the job. Choose the wrong candidate and you'll have a hard time getting them to work effectively despite being at home or in another country altogether. The same applies if hiring locally; choose unproductive employees no matter where they're based and you'll face problems with productivity levels.