4 Outsourcing Myths and the Truths Behind Them
The outsourcing industry is plagued by countless misconceptions that gives it a bad image. Among the many entrepreneurs that I talked to, many of them perceived outsourcing as expensive, unnecessary, and impractical, among other things.
The image of a plain office crammed with hundreds of underpaid workers sitting in front of a computer while answering calls is outdated. I have gathered the 4 most common outsourcing myths and the truths behind them. We hope you find this helpful!
You could lose control of your business processes
Losing control of your business functions and processes is one of the most common concerns that entrepreneurs have when it comes to outsourcing. Allowing a different company handle one or more of your business functions does have its risks especially if their standards are different â€” or lower â€” than the ones that you set. However, if you choose the right outsourcing company you will have more control over the way they do the job.
Loss of privacy is one of the biggest fear that entrepreneurs face when they consider outsourcing. There are several businesses that are wary of sharing their personal information as well as their customersâ€™ to another business. Businesses that directly gather their customersâ€™ credit cards, bank account passwords, and other finance-related information want to be as secure as possible.
Fortunately, this issue is no longer as prevalent as they think. By choosing choosing an established company with an extensive list of previous clients, you can rest assured that all information are in good hands. Moreover, these companies take security very seriously, most outsourcing companies do not allow their agents to bring pens, pencils, mobile phones, or any other item or medium which can be used to copy/gather information.
Back in the 90â€™s, this belief might still be applicable. However, as outsourcing becomes more and more available, the costs become less and less as well. In fact, small and medium-sized businesses, also known as SMEs, are the ones that can experience the biggest benefits of outsourcing. Why? This is because SMEs have a very limited capital. This makes it difficult to handle all tasks in-house. By deciding to outsource, they can tap to a larger valuable resources that will surely benefit your business. Moreover, Â some outsourcing companies offer a fixed-priced packages that are highly affordable.
While outsourcing does cut costs effectively, itâ€™s far from being the sole purpose. Sure, if youâ€™re an owner of an SME, then you can reduce the labor costs, but donâ€™t let it be your main goal. The primary purpose of outsourcing should be to improve your services by allowing a different company to handle your non-core functions while you focus on the core competencies of your business. If you focus too much on reducing costs, you could compromise the quality of your products and/or services. So always remember that, like with everything in the business industry, you are bound to get what you paid for.
The industry of outsourcing is showing no signs of slowing down. As the market becomes more global, companies are seeking the help of established outsourcing companies that help them provide first-class services to their customers.