Outsourcing is one of the top industries in the world where a company hires another company to be responsible for a task or an activity. Nowadays, more and more cost and quality conscious businesses all over the world are turning to destinations like India for outsourcing their non-core business processes but along with this popularity, outsourcing also brings myths that refrains people for opting for it as a business plan. So, here are the most common myths regarding outsourcing:

Myth #1: Outsourcing is only for big businesses

The very first myth that most people have is that outsourcing is for big businesses and hence small businesses and startups shy away from it. Although many outsourcing companies work with big clients, this does not refrain from working with companies of any size. Small and medium-sized companies are the major players when it comes to outsourcing as they have the potential to grow and need long-term services.

Myth #2: Outsourcing makes you lose control of your business

Losing control of the business – This is one major fear or myth that people associate with outsourcing which is untrue. Most outsourcing companies keep the clients fully involved while they manage tasks that require lots of time and resources.

Myth #3: Outsourcing means poor quality

Companies want their work to be impeccable and they fear that if they outsource their work, they would receive results of poor quality as the work is done at a lower cost. In reality, every region has its rate and so the rates of work are lower not because of poor quality but because of the different cost of living. Outsourcing teams create even better products that the local team with proper planning and agile planning.

Myth #4: Language and cultural barriers make collaboration difficult

Companies stop themselves from outsourcing because of the lack of proper communication as a result of cultural and language barriers. However, cultural barriers appear only when clients and outsourcing teams don’t follow a simple set of rules that should be established at the very beginning of cooperation. Experienced outsourcing companies have already worked with other business cultures, understand cultural differences and are well versed in English.

Myth #5: The time difference is a problem since the team works when you sleep

Another myth that people come across regarding outsourcing is that the time difference between the companies creates a huge coordination problem. If planned wisely, work can be outsourced and companies can get results smoothly. Both parties should communicate regularly during their work hours that overlap in different time zones. This way they can keep track of their work, give feedback and resolve issues.

Myth #6: Outsourcing will compromise your company’s privacy and security

One of the biggest fear that companies have when it comes to outsourcing is privacy and data breaches. For long term and successful operations, trust is the key to business relationships. Outsourcing companies work hard to earn the trust of their clients as if a company mismanages a client’s data, they lose their credibility and reputation. So, security is of the utmost importance when it comes to outsourcing.

Myth #7: Outsourcing means offshoring

People often get confused between outsourcing and offshoring. Business offshoring is when work is done outside one’s country but the offshoring team is part of the company. Whereas, outsourcing is when a company agrees with a third party to get some services.

Now that we have broken the barrier of myths about outsourcing, that should not be the sole reason for you to outsource your business, right?! So, we bring you multiple benefits of outsourcing:

Benefit #1: Save money

One of the major advantages companies gain by outsourcing IT services is saving money. Outsourcing helps to control capital outlay. Outsourcing IT services to a company that specializes in business networks gives a competitive edge regarding the pricing of goods and services. Businesses that outsource, convert fixed expenses to variable expenses, freeing up capital for use in other areas.

Benefit #2: Focus on core operations

When IT services are outsourced, business managers can concentrate on core goals and objectives. Some managers are torn between engaging prospective customers and handling operations outside business objectives. This can be resolved by outsourcing and the business managers can focus their energies on the core operations.

Benefit #3: IT Resources like that of big businesses

Small businesses struggle due to low budgets as they are unable to acquire all the necessary resources to implement the IT systems and services they need whereas large enterprises have many resources. So, outsourcing IT services is more beneficial as they can get the desired result as a more equitable playing field is formed between small firms and large enterprises.

Benefit #4: Save on infrastructure and technology

Another benefit of outsourcing is that companies need not invest in infrastructure. The outsourcing partner takes the responsibility of the infrastructure, technology, and all such business processes.

Benefit #5: Faster and better services

Outsourcing services convert your ideas into products very rapidly. It decreases the lead time for your product to reach the market place and delivers high-quality products with the value-added proposition.

Benefit #6: Increased efficiency

The productivity and efficiency of the service or product increases by outsourcing as the job is done better with the help of their knowledge and the understanding of the domain. This leads to an increase in the betterment of the quality and ultimately contributes it to the bottom-line of the company.

Benefit #7: Access to skilled resources

With outsourcing, companies don’t need to invest in recruiting and training expensive resources as their outsourcing partner already has highly skilled resources.

Outsourcing has played a key role in the success of many businesses, especially in the IT sector. But many misconceptions confuse businesses and stop them from gaining their benefits. If certain guidelines are followed and a good tune is set with the outsourcing company, a business can soar without any fear and use outsourcing to their advantage.