Truth vs. Fiction
Outsourcing services has always been wrapped in myths and it is high time to separate the truth from fiction. There are just plenty of misleading concepts about an industry that is evolving on its own, becoming a catalyst of change in the way the world works. Like the real workforce, there’s plenty of room for success… and failure. Many of these myths have evolved out of misconceptions and deals that didn’t simply work. If you’re new to outsourcing, you are in for a treat as we demystify these myths.
7 Most Common Myths in Outsourcing
Myth # 1: Outsourcing is Costly
On the contrary, outsourcing can save you money in the long run – if you have chosen the right people to work on your project. Outsourcing your project means paying only for the work done, which can save you a lot from all of those required health insurances, paid leaves, pensions, and unemployment benefits that you have to pay when hiring in-house staff. You can also save from the high overhead costs of running a traditional office setup.
Myth # 2: Outsourcing is Too Risky
Every business has its own risks, whether you are doing it real-time or online. This is why it is important to build trust, collaboration, and good communication among your team. If you are outsourcing a project with sensitive data, you can always have your service providers sign a Non-Disclosure Agreement.
Myth # 3: Outsourcing Drives Wages Down
Just because a provider from India charges lower than someone in the U.S. doesn’t mean that outsourcing is a top endorser of slave labor rates. One must include the cost of living and the ratio of quality per rate when judging an outsourced worker’s income.
Myth # 4: Offshoring Services Means Lower Quality
This is one bad myth that must be debunked. Just because a service provider lives in the third world or a developing nation doesn’t mean that quality of work is sub par. It is a racist attitude based on language differences which sparked this controversy in the first place.
Myth # 5: Outsourcing is the Answer to All of Your Problems
Problems, in life or in the workplace, don’t simply vanish into thin air. If you’re having this illusion that outsourcing will solve every problem your business has, think again. You need to know the root cause of the issue before you decide whether to hire outsourced workers or not. If you’re just moving problems without targeting the cause, you’re just going to waste time and money.
Myth # 6: Outsourced Projects are Difficult to Manage
True.. if you don’t know how to effectively communicate clear goals and assign tasks to your virtual team. Just because your workers live a thousand miles away in a different culture and time zone doesn’t mean an excuse for you to skip outsourcing for good. There are ways to setup meetings on a common time and date through instant messaging or video conferencing services on the web.
Myth # 7: Outsourcing is Bad for America
The most timeworn debate of all times come to whether outsourcing makes more people lose jobs in the U.S. or not. Outsourcing may send jobs overseas and you may get personal with the issue, if you’re looking at one side of the coin. Outsourcing helps many small businesses and startups in the U.S. to survive in a tough economy as well.
Keep in mind that doing business, traditional or virtual, comes with pros and cons. Your outsourcing needs can turn into a success story if you have made a careful plan in the first place. Outsourcing is a powerful weapon in achieving a win-win deal, and it can also be a weapon of destruction. The Options are Limitless!
Common Mistakes in Offshoring Your Business
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