Many companies turn to outsourcing to grow their business. Based on projections, the business process outsourcing (BPO) industry is expected to generate revenue worth US$407 million by 2026.
But while outsourcing continues to be a common practice among many companies, some are still confused about whether to outsource their projects or not. One reason for this is the persistence of myths about outsourcing.
Some business people view outsourcing based on what others say. This bias created by the subjective narratives has led many to be misinformed about what outsourcing really is. To debunk some of these outsourcing myths, the article below will explain the truth behind these common misconceptions.
5 Common Outsourcing Myths and the Truth Behind Them
Myth #1: Outsourcing is just a hassle, so why bother?
Truth: This may be true in the past. But, as outsourcing processes evolved, best practices have emerged. Now, businesses work with outsourcing companies to streamline their operations and increase organisational efficiency.
Admittedly, in the past, outsourcing was burdensome and complex. However, as technologies progressed, so did the outsourcing experience. It is just a matter of looking for the right provider.
That said, your outsourcing partner should always deliver a hassle-free experience. Choose a provider that shares the same values as your organisation. They should also provide you with personalised services that suit your company’s unique goals and needs.
If you and your provider see eye-to-eye, the outsourcing process can go smoothly.
Myth #2: Outsourcing results in low-quality outputs
Truth: This is a generalisation. Not all outsourcing partners provide subpar outputs.
The goal of outsourcing providers is to ensure the quality and integrity of their outputs for clients through their services. For example, if you are an accounting firm, hiring outsourcing financial accountants who are experts in the field allows for accurate outputs and efficient accounting processes within your organisation.
Running a business involves situations that require the expertise of professionals to get the job done. By outsourcing to experts, you can be assured that the tasks are performed efficiently and the outputs meet quality standards.
To reduce the risk of getting low-quality outputs, partner only with a reliable outsourcing service provider with an excellent and proven track record.
Photo Credit: Sora Shimazaki
Myth #3: Outsourcing is only for big businesses
Truth: Small companies can benefit from outsourcing as much as big businesses.
Outsourcing is often associated with big companies, so small-medium businesses (SMBs) may feel alienated from the advantages of outsourcing services. The truth is, there are many benefits SMBs can gain from outsourcing. These include:
- Better control of company costs: Your organisation can save time and money by delegating business tasks to experts who can do the job more efficiently.
- Improved productivity: SMBs have fewer in-house human resources. Utilising them to train recruits rather than work on tasks that grow the business can negatively impact the company’s revenue generation efforts. By partnering with an outsourcing provider, your employees can focus on what they do best, increasing their efficiency, productivity, and job satisfaction in the long run.
- Focus on core operations: With outsourcing, you can lighten your company’s load by delegating tedious, non-core tasks. Hiring an outsourcing provider will allow you to channel your resources into more important, revenue-generating tasks.
Myth #4: Outsourcing is not a long-term solution
Truth: Depending on your business needs, you can outsource business tasks on a short- or long-term basis.
Outsourcing providers can take care of a range of tasks, from simple administrative tasks to complex strategic activities such as enterprise resources planning and financial consultancy. Depending on your business needs, you can outsource business tasks on a short- or long-term basis.
However, a long-term partnership with a provider can bring more benefits. The longer they work with you, the better they can get to know your company’s structure, needs, and strategies. In turn, they can provide you with more accurate business solutions.
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Myth #5: Outsourcing makes you lose control of your business
Truth: Outsourcing providers only work on the specific tasks given to them—no more, no less.
A business contract defines all terms and conditions of your partnership with your outsourcing provider. Hence, without your permission, your outsourcing provider cannot work on other aspects of your business apart from those specified in the contract.
Look for an outsourcing provider that values transparency and exhibits good communication skills. These qualities will enable you to see if your outsourcing projects are being handled based on your specific requirements.
Explore Opportunities Outside Your Borders
Despite the myths surrounding the outsourcing industry, more and more businesses are outsourcing their projects to boost their revenue, cut labor costs, and improve organisational productivity and efficiency.
As long as you partner with a reliable outsourcing partner, such as an offshore company in the Philippines, you can maximise the business benefits of outsourcing.
If you need help in growing your business, do not hesitate to find a reputable third-party outsourcing service provider to handle your needs. Consider working with optiBPO, a recognised outsourcing leader in the Philippines that provides outsourcing services tailored to suit any business needs. Reach out to us today to learn more about our customised business solutions!