Due to tough competition and strewn workforce worldwide, businesses nowadays rely heavily on outsourcing their work. The major benefit of outsourcing is to increase efficiency, save cost and escalating revenues. For this purpose, entrepreneurs have to find alternative and affordable solutions that cater to their needs.
Talking about IT services such as software development, app development or AR/VR solutions, many of the companies rely on outsourcing their work. The reason is due to lack of in-house resources, low capital and depleting efficiency.
To give you an overview, let’s have a look at few of the statistics and key findings.
- In 2016, business process outsourcing contributed a much smaller proportion of the industry’s global revenue than information technology outsourcing, generating 24 billion and 52.9 billion U.S. dollars respectively.
- 59% of business leaders cited cost cutting as a driver in outsourcing processes. Other top factors included enabling focus on core business and solving capacity issues.
- The global revenue of business process outsourcing and information technology outsourcing amounted to around 88.9 billion U.S. dollars in 2017, of which more than half was generated in Europe, the Middle East and Africa
The trend of outsourcing will be outreach in the coming years, yet there are misconceptions prevailing all around. Big and small enterprises normally don’t outsource their task due to myths and misconceptions. What are those myths and misconceptions, let’s discuss it briefly.
Outsourced Teams have no Contingent Plans
No matter, for what purpose you have outsourced your project and at what phase, once you outsource the work, they are part of your plan. This does not mean that you don’t have to guide them on what your core purpose is. Those who are outsourced in midway should be guided from start and set clear objectives for what they are hired for.
Moreover, you need to ensure that in-house resources and outsourced teams are all aligned and on the same page.
Costs Higher than In-House Team
Most of the small enterprises think of outsourcing is way costly than managing in-house staff. However, the case is quite opposite to what many big and small enterprises think of. Imagine the cost of training the staff, bearing petty expenses, paying utility bills and giving rent etc. All of these expenses add up along with the paycheck that you have to give every month.
For the outsource IT personnel, you just have to pay for the time they have worked. No matter, where they live, you do not have to bear any expenses like utility bills, monthly salary etc.
Big Enterprises can Afford Outsourcing
It is normally perceived that outsourcing is meant for big companies and only they can benefit from it. However, it’s a big misconception and nearly everyone including small enterprises or even individual freelancers can benefit outsourcing.
For instance, if a company needs an app for a small e-store or an individual is looking for a personal portfolio website, outsourcing will be the ideal choice. The biggest advantage of outsourcing your work is that you can hire people owith diverse skills worldwide without bearing extra cost.
Cultural Differences can arise
Hiring an outsourcing agency from another country would lead to cultural differences, which might scare many of the companies. It can be resolved by hiring a counselor who can offer help about the culture and norms of an outsourced company. However, there might not be much issue because due to rise in outsourcing trend, everyone understands the differences and pay attention to work-related issues rather than cultural differences.
Communication Might be Disrupted
Outsourced teams are commonly managed and communicated remotely. There might be some communication gap such as the difference between the time zones can create numerous problems. Moreover, some of the organizations might think that if they outsource the project, the communication will be disrupted or job responsibilities will become thinned.
Before the project starts, it is better to discuss and decide every bit and piece of the project with team members and project owners. It will help in making everyone understand their role and be clear on their objectives to achieve.
Outsourcing projects undoubtedly can do miracles and have a positive impact on organizations in delivering efficiency, cutting down the cost and increasing revenue. It is set to grow and flourish in the future, and that is why misconceptions and myths should be waived off.
