Common Misconceptions Companies Have About IT Outsourcing

by | Published on Jan 4, 2019 | Business Process Outsourcing

Business organizations have various activities such as production, marketing, finance, human resource management etc, and to improve efficiency businesses outsource to providers of BPO services. Businesses of all sizes make use of outsourced solutions. Companies that decide to outsource part of their IT have various expectations. But some companies often hesitate to outsource IT functions due to some misconceptions such as the following.

IT Outsourcing
  • Improper communicationProper communication is important when you are working with remote teams. A large amount of outsourcing is provided by Latin America, Eastern Europe and Asian countries. But outsourcers may be concerned that when outsourcing to an offshore location, communication could prove to be challenging. However, English is a mandatory language in schools and universities in these locations, so today communication need not be an issue. When you are outsourcing your functions to a third party, ensure that they are clear about the tasks they are supposed to accomplish. If the service provider is unclear about what they are doing, they may not be able to fulfill their assigned duties successfully. It is good to maintain a strong relationship with the service provider for better service and also monitor their work at regular intervals to minimize any errors.
  • Poor quality workMany business managers assume that developers educated outside the U.S or Europe are less skilled. But this is a wrong notion. The U.S stands 26th in the world of IT talent. According to Deloitte, 78 percent of companies that outsource their projects are satisfied with the output they receive.
  • Difficulties in managing the teamAnother concern is when a project work is outsourced, business managers may not be able to supervise their work which could in turn lead to low quality of output. However, outsourcing providers quickly respond to messages and calls when they are needed. They ensure proper flow of information communication. Some outsourcers are concerned that external team members may not be efficient at their jobs, but the fact is that they might even provide something innovative that you may haven’t even considered. According to Deloitte, 35 percent of companies seek information from their outsourcing companies.
  • Outsourcing is just for tech companiesMany business owners believe that only tech companies can benefit from outsourcing. Deloitte reports that 29 percent of companies that use outsourcing are in the consumer products industry, 11 percent are from the healthcare industry and only 9 percent of companies are in tech and media industry.
  • Outsourcing is for giant corporationsOutsourcing is commonly believed to be an option for million dollar contract companies and not for small businesses or startups. As per Deloitte, 59 percent of companies use software outsourcing as a tool to cut costs while still developing revolutionary technology. So, outsourcing is useful for small companies and startups too.
  • A cheap service provider is a better optionService providers that offer to work at cheap rates are not reliable. When you call for an upgrade, you will need to pay extra cost for the upgrade. Moreover, you may not get much from the upgrade. This will lead to poor quality of work and output.

Outsourcing is considered an effective option for handling various activities of a business organization at low cost with increased profitability. This can lead to overestimation of benefits that come with outsourcing. So, request for a trial project so that you will know what to expect from the outsourcing provider. With a good business process outsourcing company, you not only get to save time and money but also benefit from quality products and valuable insights that present day service providers offer.

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