The outsourcing journey is often accompanied by a range of myths and misconceptions that can cloud decision-making. However, understanding the reality behind outsourcing is crucial for making informed choices. From dispelling outsourcing myths to shedding light on the tangible benefits, this article provides insights to empower businesses with a clear perspective on outsourcing and its true potential. Keep reading to discover common misconceptions about outsourcing.
Lack of Project Control
One of the prevalent myths of outsourcing is that you lose control over the delegated project. However, this is often not the case in actual outsourcing partnerships. Like an in-house team in your office, the role of your outsourcing provider is to carry out the assigned tasks. The chosen outsourcing partner does not have influence or authority over your business.
For instance, when you outsource your recruitment tasks, the outsourcing partner takes charge of the entire hiring process while maintaining transparent communication with your internal team. You retain control over key decision-making aspects, such as candidate selection, client submission, and final hiring, without being burdened by minor details of the recruitment process.
Outsourcing Creates Language and Cultural Barriers
While concerns regarding language and cultural barriers arise when outsourcing to an offshore company, this misconception does not hold true. Outsourcing providers are proficient in English as they have a diverse clientele, particularly from North America, Australia, and Europe.
In addition, outsourcing companies have multilingual staff on their team to facilitate effective communication based on client-specific needs. This fosters seamless collaboration with clients regardless of their culture and language.
Time Zone Difference Can Affect Productivity
It is commonly perceived that offshore outsourcing causes a decrease in productivity due to the time zone differences. However, outsourcing companies strategically address these challenges, turning them into clients’ advantage. Skilled virtual assistants adapt their working hours, ensuring major results are ready at the start of your day. Moreover, completing tasks early allows outsourcing service providers to leverage overlapping working hours, facilitating seamless support for your operations through meetings and direct communications.
Furthermore, larger time differences can be harnessed for increased productivity. Businesses can establish a nearly continuous 24-hour cycle of productivity, significantly enhancing overall efficiency by capitalizing on varying working hours. However, many outsourcing partners operate with teams working in shifts, offering flexibility to align with your preferred working hours.
Outsourcing Carries Data Security Risks
Businesses are concerned about data security breaches and intellectual property (IP) theft when outsourcing. However, protecting data and IP is a priority for outsourcing companies as their professional reputation hinges on client confidence. Errors in mishandling data could tarnish the client’s trust and may lead to the BPO industry’s failure.
Moreover, outsourcing agreements typically include clauses like non-disclosure agreements (NDAs), offering legal protection against information leakage and IP theft. Therefore, it is crucial to select the appropriate outsourcing partner that ensures compliance with secure data handling procedures.
Outsourcing Results In Subpar Services
A common misconception is that outsourcing leads to low-quality deliverables. However, selecting the right outsourcing partner is crucial for ensuring satisfaction with their work. Research and vet companies to determine their alignment with your business needs, work culture, and industry experience.
Reputable outsourcing companies consistently deliver exceptional services and high-quality results. According to Deloitte’s 2021 Global Shared Services and Outsourcing Survey, 80% of respondents expressed satisfaction with their outsourcing arrangements.
Outsourcing Is the Same As Offshoring
While it is misleadingly believed that outsourcing and offshoring are interchangeable terms, these two concepts differ in significant ways.
Outsourcing
Outsourcing is the practice of contracting non-core business operations to a third-party entity, whether it’s a local or a foreign company. For instance, a US-based business looking to outsource its marketing campaign development may choose a provider within the US or opt for a foreign company in Asia. When this outsourcing involves a foreign country, it is specifically referred to as offshore outsourcing.
Business Process Outsourcing
One prevalent form of outsourcing is Business Process Outsourcing (BPO), extending to various sectors and covering various functions such as recruitment services, human resources, financial management, marketing assistance, etc.
Offshoring
On the other hand, while offshoring shares similarities with outsourcing, it exclusively occurs in a distant country. Offshore employees can either be employed by your company or by a separate offshore entity. It is typically done to leverage cost advantages in developing economies, regardless of the hiring structure.
Takeaway
Contrary to the common misconceptions, outsourcing offers numerous benefits and robust risk mitigation strategies, making it a viable business approach. By breaking myths about outsourcing, businesses can harness the true potential of outsourcing as a valuable and adaptable strategy for sustained success.
Lighten your workloads and maximize efficiency by partnering with BPO Wizard. We specialize in outsourcing skilled Virtual Assistants to streamline your business processes. Let us handle the routine tasks, allowing you to focus on what matters most. Enjoy the benefits of a more efficient business with top-notch VA talent.
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