Outsourcing might seem like a relatively new concept, but third party vendors go back hundreds of years. A winemaker doesn’t go out and pick his own grapes, he buys them from a third party. Essentially, outsourcing works on the same theory. It’s the idea of entrusting certain areas of your business to those in the same field or with more experience.
Unfortunately, there is a lot of incorrect information about outsourcing, which leads to skepticism, more so if you are the owner of a small or medium-sized business.
Our aim today is to help ease your mind about outsourcing firms and let’s start by looking at why companies use it.
- Around 72% of IT projects and tasks are outsourced
- This compares to 47% in HR outsourcing and 42% of financial services being outsourced
- 40% of banking help desk positions are filled by outsourced staff
- 54% of customer service jobs are outsourced
So what are the biggest misconceptions regarding outsourcing?
- Outsourcing is only for large companies
It’s one of the most common misconceptions people make when they think about outsourcing. There are plenty of statistics to prove the myth wrong.
60% of SMEs in the UK had used outsourced IT services and that was back in 2014. A further 65% of small and medium-sized businesses had used outsourced staff in order to fill skilled labour positions.
Outsourcing is suitable for any sized company, the only differences you will find are the number of people needed or the size of the project.
- You can’t trust outsourcing partners
No matter what industry you are in, there will be people with negative experiences. That being said, 78% of business owners are positive about their experiences with outsourcing partners. The level of quality within the outsourcing industry has dramatically changed for the better. It is more likely that you can develop long-lasting relationships with reliable outsourcers.
Don’t just choose the first partners you come across. Do a little research beforehand to ensure you are about to use a reputable service.
- It’s an expensive and lengthy process
Quite the contrary! Recruiting is an expensive and lengthy process. Choosing to outsource reduces operating costs and frees up your time to focus on core activities, expansion, and development, as 59% of business owners found out.
Time equals money when you are running a business. Outsourcing partners are already set up with solutions for your needs and this can normally be put into place within a month.
- It’s harder to train workers that have been outsourced
It’s true that outsourcing companies are spread across the world and you may find it difficult to train staff that is further away. On the other hand, you can search for local outsourcing partners who can provide staff that can travel to you for a training period.
Remember that outsourcing staff will be highly qualified in their field and will need very little product training. They may just need a short time to adjust to your company’s ethics and methods, depending on the type of work.
- I can do it myself
As a business owner, it is normal to want to do everything yourself as only you know how exactly how you want it done. In reality, there are a number of tasks that can be handled out of house, especially when the business starts to expand and things become more complex. Also, as you try to handle everything yourself, you will stretch yourself thin and tasks will not be completed to the necessary standard.
47% of businesses decide to let outsourcing partners solve certain issues. 57% use them so that they can pay more of their attention to core business. Help from other parties gives a business the chance to build long-term relationships as well as reducing costs.
- It’s impossible to work out cultural differences
Some countries will have noticeable cultural differences and there are now advisors who can guide outsourcing partners through these differences. The easiest way to overcome this problem is to choose an outsourcing partner that is closer to home.
Nowadays, as technology brings the world closer together, it is less likely for you to notice such differences. Many Eastern European countries like Romania have very successful partnerships with companies in the US and UK.
- I won’t be able to control the process
If you read over number 5 again, you will notice that we are reinforcing the fact that you don’t need to be in control of everything. Outsourcing gives you the chance to contract out the jobs that others can do.
Agreed, you may not have direct contact with all of the staff, but this doesn’t mean you can’t follow the process of your tasks and projects. Your outsourcing partners are working towards your goals, not against them, regardless of whether you are watching over them.
Summary
Outsourcing has come a long way in recent years and there is no need for the myths and misconceptions that may have been around in the past. The numbers here will enable you to make your own decision!
