In our previous article, we have rounded up the most common myths about outsourcing, but unfortunately, there are more!
As promised, we are back with other outsourcing misconceptions.
Myth: Offshoring means outsourcing > the confusion between these 2 concepts
Being 2 different things, it’s very important to clear up the terms.
Outsourcing – means the assignment of business operations to an external organization (for example: a freelancer or an agency).
Offshoring – refers to the relocation of business processes in a different country, usually to leverage cost advantages.
Other differences – Comparison chart:
The line of demarcation between the two is subtle, but they are different terms.
Myth: The client has no control over the outsourcing team
There’s no difference between the control you have over your outsourcing team as you do over your in-house people.
Most people tend to imagine that outsourcing teams are very difficult to manage. Loss of control represents a common fear with a potentially high price to pay: you hire people to do a job, communication is limited, and finally, the service provided will not achieve the expected results.
But with the right working methodologies and check-points in place, you will definitely have more than enough control over the team and its work.
Make sure you maintain constant communication – use appropriate communication channels such as Slack or Jira and keep on top of what your team is doing.
Myth: Companies that outsource IT will lose their best employees
There has been and will always be the risk of employee loss, especially with those who are fearful or uncertain about the impact choosing to leave the organization, or the shift of internal employees to the provider. In any case, both possibilities have become less likely in recent years.
It’s very important to communicate your employees the benefits of outsourcing and explain to them how they will be a part of the change.
Make sure you choose the best outsourcing team for your needs! Companies should not worry as long as they put their IT assets in the hands of registered and official businesses.
Plus, new technologies now give business owners access to tools and platforms with a real-time view of what is happening.
Myth: Outsourcing delivers substandard work
Technically, outsourcing represents a managed service. This is comparable to dealing with any other supplier or businessperson.
You will need trust, due diligence, governance, and transparency to mitigate risks and make it work. Even though your contract is necessary, it’s not sufficient, and won’t always save you; so spend as much time choosing and nurturing trustworthiness as you do negotiating your contract.
The management of trust between both parties can be critical to a successful long-term relationship.
Despite misconceptions and negative perceptions, the real truth is that companies of all sizes can benefit from outsourcing. For this reason alone, it is worth breaking the myths and taking a long hard look at the reality of outsourcing.