There are a great many conflicting assumptions about outsourcing, making it difficult to figure out what the truth is when trying to decide if it’s the right path for you and your business.
Below are the top 10 myths about outsourcing that we wanted to put straight!
You will lose an element of control
There is a common fear that outsourcing is risky because there’s a sense of limited control. In fact, this is easily alleviated by having a firm set of process documents in place when handing over the tasks to make sure there is no misunderstanding about expectations. Outsourcing done properly should be a smooth transition and one that can free up your time to be best spent on other tasks.
It’s only for cost cutting
There is no doubt that outsourcing can have a financial benefit, but this isn’t necessarily the only outcome or driver for companies to outsource. Often businesses decide to outsource as a result of growth not being possible in the physical location of the company; a lack of knowledge or expertise in a particular field within the business or a desire to free up time for more important tasks. Indeed, a survey by BDO found that 23% of CFOs consider the lack of skilled workers in the local economy as the greatest challenge to industry growth.
The outsource provider has limited knowledge of your business
Contrary to the belief that outsourcing means that your tasks are in the hands of people with no connection to your business, companies who provide outsourcing services know that an important part of the service is to integrate as part of the team they are working with and offer tools and suggestions as to how to work collaboratively as partners working towards the same goal. Often the business will give training to the outsourcing provider, as they would to any new joiner in their company, which can also include
The output will be of poor quality
The quality of the delivery will depend on each providers’ training and development set up. If outsource companies provide a continuous improvement programme and encouraged the individuals to improve their skills within the company, this will inevitably lead to more rounded and skilled workers.
As with anything, it’s always good to shop around for options and a provider’s reputation is a good indicator to the level of service you can expect to receive, and it should never be assumed that the quality will be less than you could expect from an in-house employee. The outsourcing industry is now worth around $89 billion, so there is a naturally competitive level of quality amongst the top performing companies.