Debunking 5 Myths About International Outsourcing

Recruitment Process Outsourcing

The practice of outsourcing has been a strategic move for many businesses. Many corporate leaders and decision-makers use this method to tap into experienced individuals living outside the country with particular skill sets to accomplish certain job functions efficiently. 

This practice could increase operational efficiency and cost-effectiveness and drive business development for the better. With all its benefits and gains, this strategic use of outsourcing is no longer a secret for many enterprises.

With more businesses shifting online and exploring new ways to improve their operations, this business method has been gaining momentum recently as many join in with the outsourcing industry trends.   

However, being the talk of the town means that there will always be a rampant circulation of myths and misconceptions surrounding it. Although we already live in a technological and digital world, not many corporate leaders and business owners are ready and aware of such possibilities and how outsourcing can significantly benefit their companies. 

Many businesses continue to believe in outdated outsourcing myths. As a result, they have little to no idea about the potential gains and various advantages outsourcing can deliver. They are stifling innovation, restricting their development potential, and jeopardizing their competitive edge, which could hinder a company’s success. 

Are you curious to learn more about outsourcing and see if the things you know about it are common misconceptions? This article will highlight some business outsourcing myths and debunk them with facts. Hopefully, you’ll have a better understanding of this business method through this article. 

Myths of Global Outsourcing and Their Realities 

Here are the five common myths of outsourcing and their realities to further gauge your business decisions of whether you will jump on the trend train or not: 

Myth #1: Cost-effectiveness is the only reason why companies outsource.

It is indeed true that venturing into global outsourcing can save businesses training costs and overhead costs, among other expenses. However, this is only just one of the reasons why you should hire people outside of your country. Cost-effectiveness is not the sole reason many companies outsource, nor is it the only motive for continuing outsourcing trends. 

Although this may have been true before, the world and business schemes have changed with the age of digitalization. In addition to cost-cutting, the need to focus on core business functions, solve capacity issues, and develop new products are also primary drivers for outsourcing practice. Working with an outsourcing partner to take over one business aspect allows owners to focus on more critical responsibilities. 

Global outsourcing also provides companies an avenue to scout more talented and skilled company workers with different work experiences and backgrounds. They could give a business essential expertise and information input that could positively change the course of a business. 

Myth #2: Outsourcing is cheap, so the services may not be worth it. 

Reiterating what was discussed above, one of the many benefits of outsourcing is its cost-effectiveness. However, despite its low price, outsourcing workers are trained and experienced to effectively handle their tasks, considering cultural differences. 

In reality, most outsourcing companies engage professionals in many industries who seek to improve their abilities to give the quality services that your company requires. Cost may be an essential consideration when selecting to outsource, but this will also result in a devoted and well-trained team in most situations. Moreover, outsourcing tasks to skilled workers instead of doing the legwork from recruitment to training makes it a sound business move. 

In some cases, this misconception holds water. But that’s if companies looking to outsource fail to do proper research and scouting before trying this business method. The key to finding a reliable outsourcing partner is thorough research and asking others for recommendations. 

Myth #3: Language, time zone, and cultural barriers may be difficult to overcome. 

Global outsourcing involves hiring workers from different parts and corners of the world. This would mean that your team may become more diverse than ever, as team members may have different cultural backgrounds. In addition, people of different nationalities and various countries would mean there can be language barriers and different work time zones. 

These challenges might pose a serious problem ten years ago. But in today’s digital era, companies can work around and address gaps to solve this issue using online tools. Businesses may hold virtual at-home meetings to address time-zone disparities. 

To build mutual trust and understanding between team members, seminars that tackle different cultures can help team members adjust their attitudes and work approaches accordingly. 

Corporations may also look for global sourcing companies for cultural-exchange assistance. Reputable international sourcing and procurement firms are prepared to handle cross-cultural exchanges. Such firms also hire multilingual experts fluent in many languages, including English and Chinese, for better communication.

Another tip is knowing which countries to focus on is crucial when outsourcing. For example, you may look for outsourcing partners from countries like the Philippines. English is a language used as the primary mode of instruction in most Philippine schools and is their second language, addressing your issues of language disparities instantly. 

Additionally, the Philippines’ culture is based on a network of social values of being people-oriented and resilient, resulting in a hardworking, model workforce. You may also look for countries whose education system is known for developing and honing highly trained professionals in their respective fields. 

Myth #4: You may lose control over your business. 

Outsourcing may involve hiring individuals you don’t see or meet in person, given the international physical distances. So, understandably, it can be daunting to pass over job tasks and company functions to someone you may not have seen face-to-face. Giving over control of critical areas of your business to a third party is bound to cause anxiety. 

However, contrary to popular opinion, outsourcing may give more control—it just changes the flow of information. A good outsourcing partner will be open and maintain the reins firmly in your hands. If you collaborate with outsourcing firms that adhere to the same criteria as you do, your business will be in control and safe. 

It is just critical to remember to talk about your standards before signing a contract with an outsourcing agency. This way, these partners can work with your documents as you expect and adhere to your protocol and established quality of work. 

It’s becoming more common for teams to work overseas or halfway around the world in this new era of business. Choosing an outsourcing partner committed to a culture of openness and accountability and who communicates regularly will alleviate the anxiety of losing control over your business. 

Proper communication and scouting of partners and workers will give you the same traditional working environment. You will have the same level of monitoring as if they were in the next office as if they are just one wall away. 

Myth #5: Data and security breaches can be rampant. 

Data security and the protection of financial information are widespread and justified concerns. There is, of course, an increased danger of data mishandling when it comes to outsourcing. After all, businesses grant third-party access to some of their most sensitive company data assets to people in the other part of the world. 

However, it is not just unique to outsourcing itself. Many prominent on-shore and traditional corporations have suffered similar corporate challenges. It is a general problem in every business, not just in outsourcing. 

The security of your data should be one of your top considerations, both for your outsourcing firm and yourself. By establishing the proper security standards and ensuring that the outsourcing agency has protocols to avoid such incidents and address them if they happen, you can assure that they prioritize data protection as if they’re a part of your company. 

There are a lot of security measures you can do to avoid security and data breaches. You may run a risk assessment to assess any predicted situations before applying effective risk management measures to prevent these occurrences.

You may also conduct a detailed examination of a potential partner’s current security processes. A third-party firm that has access to your sensitive data should be safe and secured. Thus, you must find an outsourcing business with at least three levels of protection and defined protocols for dealing with sensitive information just to be safe. 

Also, assess if your third-party comply with corporate data rules and guidelines. If you go through with a collaboration, you must constantly check how your outsourcing partner handles your data. Routine check-ups allow you to determine whether they fit your company’s security requirements. 

Find Your Trusted Outsourcing Partner

Many firms have long considered global outsourcing, or outsourcing in general, to be a strategic business decision. Many company executives and decision-makers utilize this strategy to find experienced employees residing outside their country with certain skill sets to perform specific job duties successfully. 

With all its benefits and rewards, this deliberate use of outsourcing is no longer a secret for many businesses. It has recently been the talk of the business streets, as many people are following the outsourcing sector trends. 

Being the talk of the town, on the other hand, implies that falsehoods and misconceptions will constantly circulate freely. 

Was this article able to debunk your misconceptions about outsourcing? Are you still not convinced and still mulling over your business decisions? Perhaps the best way to see if working with an outsourcing agency is the best choice for your business is to talk to one.  

There are a lot of outsourcing firms that can just be your long-lost business partner. Outsourcing firms with solid security measures can assist you in dispelling these myths through creative presentations and transparent transactions to aid you in your outsourcing journey.

Trevor Michael

Trevor Michael is a Customer Contact Industry Specialist of Select VoiceCom, an inbound call center with telemarketing and IT support services. He has operated successfully within this niche industry for over ten years across Australia, New Zealand, and Southeast Asia. He enjoys writing, golf, and going to social events.


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