The Top 4 Outsourcing Myths

Countless businesses of varying sizes have decided to venture into the world of outsourcing. Each have their own purpose and goals, but they all believe in one thing: outsourcing works. The evidences of such belief is undeniable, which probably explains the fast and steady growth of the said industry. However, many entrepreneurs still fail to grasp the true meaning and potential of outsourcing.

Yes, there are risk — a lot of them,  in fact. But with the right knowledge and a carefully crafted strategy, the most common pitfalls can be easily avoided. The usual fears that business owners feel whenever they hear the word “outsourcing” is due to misconceptions regarding this practice. Today, I have gathered the top 4 common myths about outsourcing.

1. The language and cultural barriers are impenetrable

Surprisingly, many entrepreneurs that I talked to still worry about this so-called “issue”. The business industry is becoming more and more global. As we speak, more businesses are starting their outsourcing campaigns and I assure you that if you do proper research, language and culture will not — in any way — hinder the success of your business. Countries like the Philippines have a strong relationship with America and other western countries. The western culture is understood by most Filipinos. Moreover, because of their educational system, English has become the Filipinos’ second language.

2. Only the biggest companies have the capability to outsource

The belief that only large corporations have the resources to begin outsourcing is already obsolete. Back in the early to mid 90’s, perhaps this would be true due to the technical limitations at the time. Fortunately, our technology has progressed far enough to allow us to seamlessly communicate with someone from the other side of the world. Aside from that, the number of outsourcing companies have greatly increased over the span of several years.To attract businesses, owners of such companies lowered the price of their services.

3. The quality will suffer

One reason why business owners outsource is to lower the costs. Outsourcing gives entrepreneurs access to world-class talent for lesser costs. However, because of low-cost labor, they believe that the quality of their products and/or services will be at risk. Let me clarify this: lower labor costs will not sacrifice the output quality — unless you let it. Let’s say you decide to outsource your customer service to the Philippines. The labor cost of hiring Filipino workers will be much lower when compared to hiring American workers. This is because the cost of living in the Philippines is cheaper compared to the U.S. This does not make you an unethical boss who underpays their workers. In fact, BPO employees in the Philippines receive higher salaries compared to employees working for a local company under the same position.

4. Outsourcing is a magic bullet

The final and most bothersome outsourcing myth is that people believe outsourcing can solve everything. You may hear several entrepreneurs give motivational speeches about how outsourcing saved their business. While a this practice definitely deserves all the credit it gets, it cannot work miracles. Just because you began your outsourcing campaign yesterday does not mean that your business’ success will be 100% guaranteed. Growth and stability does not happen overnight. As a business owner, you still have to do your work by concentrating on improving your core competencies while your outsourced workers handle the rest.

The decision to outsource should be done carefully. Entrepreneurs must make an honest assessment of their business and its current standing before choosing to outsource any process. Choosing the right offshore outsourcing company will make this decision a lot easier.