Many have heard of outsourcing, but many are also uninformed about it. We are not surprised that over time people judged outsourcing based on the misconceptions they’ve heard from other people, not based on facts. Thus, numerous opinions have generated lots of terrifying myths about how dangerous or unhealthy is outsourcing for a company.
We’ve figured out that myths and false information never rest, and even in the world of outsourcing they exist.
Here are 5 of them that we’ve debunked:
Myth 1: The primary reason why companies decide to outsource is cost-reduction.
Reality:
Far in the past, this had been the only reason why companies looked into outsourcing. But has proved to be just a mirage, due to the mismatch between expectations and reality.
You have to do your research, before you decide to take a risk and eventually fail.
In any case, the main reason why nowadays companies choose to outsource is the company’s growth. Growth in terms of capacity and capability.
We realize that over time cost-cutting was no longer the main purpose to outsource, but rather the quality of the services (larger talent pool => better products). We should not deny that cost-saving is still a good cause for businesses to delve into outsourcing, but more important is to develop a great strategy in order to outsmart and outperform your rivals.
Myth 2: Outsourcing works only for big companies.
Reality:
In the past, outsourcing was deeply associated with larger companies. For example, a software development center for IBM or Microsoft was considered a norm. Nowadays, small and medium-sized companies are taking advantage of outsourcing as well.
Honestly, it’s easier for startups and small companies to allocate their budget to outsourcing, because of short-decision making.
As a matter of fact, most clients tend to choose partners who can offer flexibility, scalability and availability of resources on the market in a cost-effective manner.
Myth 3: Cultural issue and its influence > cultural differences can be avoided and will not have any impact on your project.
Reality:
Cultural differences represent one of the main factors that can lead your outsourced project to failure. It can cause big challenges. This happens because the world is full of confrontation among people, who think, feel and act differently.
The cultural compatibility between you and your outsourcing partner it’s crucial. It’s important to understand those people you are working with, because it will save you time and money.
Find a proper way to cooperate, to communicate effectively, in other words – to adjust the cultural differences to both parties acceptable level.
Myth 4: The customer is wasting too much time giving directions and training continuously the outsourcing partner’s employees.
Reality:
Actually, regular training is crucial for the success of the project. It is essential to understand your customer’s needs in order to define them as clearly as possible.
With the right project management, training and this whole knowledge transfer chain will demonstrate their efficacy over time.
Myth 5 : Offshore companies are situated in politically unstable and poor countries which makes the whole process too risky.
Reality:
Even though some amount of risk does exist, actually, countries such as Philippines, South Africa, China, lately Bulgaria, Serbia, Romania and many others, represent markets that can deliver true value in terms of business performance and cost efficiencies.
For example, Romania has grown into an ideal software development location for companies seeking a highly technical and friendly workforce and a cost-effective business environment.
Keep in mind that not all countries are the same, and many stories you hear may be false.
In any case, be cautious and make sure that the country you choose is not going through major economic or political upheavals. And only then choose the best outsourcing team for your project.