By Fernando Florez on 06|05|12
If I was a conspiracy theorist, I’d say there were dark forces plotting against outsourcing and the totally professional businesses that operate it. What I do know for sure is that a whole tangle of mistruths and misunderstandings has sprung up around the subject. So here’s my guide to six myths you can’t afford to believe.
Myth #1: If I Outsource, I’ll Lose Control
Not true. Establish a good relationship and clear communications with your outsourcing vendor and you’ll stay in control. In fact, collaborative outsourcing can actually boost the command you have over the production process:
- Automated, rules-driven workflows will ensure the standardized rules and procedures you apply are strictly followed.
- Clear service-level agreements with your vendor give you a level of rigor and control that may beat that offered by your business’s own internal processes.
- Today’s internet communications allow you to be a real-time part of the outsourcing process.
Myth #2: Outsourcing Reduces Productivity
Many people are afraid of productivity damage when Outsourcing, due to communication barriers and cultural differences. But outsource to a country like Argentina and its bilingual workforce and compatible customs mean this isn’t a problem. Plus if your business’s IT personnel aren’t over-burdened with maintaining additional in-house infrastructure, they’re free to focus on supporting key, revenue-enhancing activities. So in practice, your productivity does increase.
Myth #3: Outsourcing Will Risk My Security And Confidentiality
Outsourcing vendors know any data breach can put them out of business, so they’ll make your security a top priority. To guarantee your peace of mind, you can:
- Build suitable protections into your vendor contracts covering confidentiality, permitted data use, data security, audit rights, insurance and remedies.
- Consider legal protections, like non-disclosure and non-competition agreements, patents and safeguards.
Myth #4: Outsourcing Comes with Expensive Intangibles
In fact, outsourcing enables you to shrink your outgoings. Wages in outsourcing locations are just 50-70% of those in the US. And you also get rid of all the fixed expenses that come with a larger workforce, like extra computers, electrical devices and conveyance agreements. So if you’re a new business, outsourcing can help you launch with minimum investment and maximum confidence. Ensure the vendor you choose is right for your business or project and it will actually save you time and money.
Myth #5: Cheap Labor Means Low Quality
You might think that the more you pay for a product or service, the higher its quality. But outsourcing turns this assumption on its head. Because the wages paid in outsourcing locations are lower than in the US, you can achieve the same quality but at a fraction of the price. It’s crucial to remember that the people working for you abroad are not being underpaid – they’re getting the market rate for their skills in their own countries.
Myth #6: Lower Costs Are The Only Reason You Should Outsource
Hire a well qualified, outsourcing vendor to take over a project, and you also:
- Boost your capabilities without wasting time and resources training in-house teams.
- Get to delegate all those mundane, time-consuming tasks, so you can focus on your core operations.
- Free up internal resources which you can redirect more productively.
Outsourcing can also move the point of production or delivery service closer to your end user. Enabling you to expand and gain access to new markets.
Outsourcing can seem a tough challenge. And for sure, it’s one surrounded by myths and half truths. But relocating parts of your operation to another country could transform your performance and profitability - provided you have the right guide to show you the way. For more reasons on why Making Sense could be that partner, visit these pages again.
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