Increased efficiency, accelerated project development, reduced costs – these are only a fraction of the benefits that IT talent outsourcing offers companies.
With the increasing digitization around the world and the popularization of remote working, the culture of outsourcing has seen a great rise. Even industry giants like Google, WhatsApp, and Slack are outsourcing, making it an effective and proven business model for others to follow.
However, regardless of the benefits and popularity, some companies are still unsure whether this business practice is worth considering. Such confusion is caused by the myths and misconceptions surrounding the practice of outsourcing, and that is exactly what we will be debunking today.
Myth # 1: Outsourcing companies provide poor service
One of the most popular criticisms against the practice of outsourcing is that it can harm the quality of your product or service.
This stigma is mainly due to the fact that outsourcing is cheaper. And although in some cases, a lower price may mean lower quality, it is not entirely true.
In the case of outsourcing, the most famous destinations are developing countries due to the lower cost of living. Workers in these countries earn lower wages due to lower prices for housing, food, etc. compared to developed countries.
This means that an equally talented and experienced worker can be outsourced cheaper from developing countries than hiring an employee locally in a developed country.
So don’t worry about the fact that you are paying less as it has nothing to do with the actual quality of service.
The quality of the outsourcing service is more related to the skills of the staff. Therefore just as hiring an employee requires an in-depth examination and interview, so does outsourcing to a company.
Since you are delegating a significant part of your project to an external team, it is crucial to do your research and make sure that the team is truly capable of helping your company. Find out the 5 most important things to consider before outsourcing a team.
Myth # 2: Outsourcing is not safe
Another concern with outsourcing is data security and privacy. This is a legitimate concern, as data security is vital to the success of a business. Ensuring that customer data is stored securely is not an advantage, but rather a strict requirement regulated by law.
It makes sense that working with a third party can lead to security concerns, however if you are doing business with a trusted and experienced outsourcing company then you need not worry.
In fact, ensuring the security of their customers’ data is a top priority for reputable and experienced outsourcing companies. This is the exact reason why these companies are proactive in the drafting of confidentiality agreements (NDAs), as well as in the implementation of various security measures such as:
- Establishing strong passwords and requiring multi-factor authentications;
- Using antivirus software and virtual private network (VPN);
- Ensuring an up-to-date operating system;
- Educating employees about data security;
So if an outsourcing company is professional and takes security, there is no need to worry. However, be sure to ask what safety measures the company has in place.
Ensuring such protective measures and establishing trust is the main reason that outsourcing companies get new clients and continue being a reliable partner.
Myth # 3: You lose control of your projects.
Concern about losing control of projects is another reason that prevents companies from outsourcing their projects. Companies fear they will not be able to see and follow the project development process.
The reality is that reputable outsourcing companies are extremely good and highly experienced in project management and reporting.
Having worked with many clients and many projects, outsourcing companies know that clients need to be aware of the development process.
That is why, in addition to email and telephone communications, outsourcing companies effectively use project management tools such as Jira, Asana, Trello, etc. so that their clients can see in more detail the status of each individual task and who is assigned to it as well as deadlines, advanced reports and much more.
Myth # 4: Cultural and linguistic barriers
The difference in culture and norms, as well as the language barrier, is also a factor of concern for companies when considering outsourcing.
The truth is that successful outsourcing companies have clients from all over the world. For this reason, these companies ensure that their employees have a good command of the English language so that the communication process with customers is as fluid as possible.
Also, if the outsourcing company has worked with numerous international clients, it is aware of cultural differences and makes sure to meet the communication style preferences that clients have.
Myth # 5: Time zone difference is a problem
Companies also tend to avoid outsourcing because they believe that time differences can create a collaboration problem.
However, there are always overlapping hours between teams, which can be used to exchange information and inquiries. Some outsourcing companies that have clients with different time zones offer night shifts to make sure teams overlap during their work.
The agile methodology is another way that companies overcome time differences. Companies find it helpful to increase the frequency of communication during the initial stage and decrease it in the development and design stage. Plus, with many collaborative tools like Google Docs and Slack, the communication process is easier and faster.
Outsourcing gives companies the opportunity to quickly gain access to skills and resources and fill the talent gap. With the help of outsourcing, companies can achieve greater efficiency at lower costs.
Just like every business practice, outsourcing also comes with risks. However, when partnering with an experienced and reputable company, outsourcing can be a very effective method of enhancing your projects and gaining a competitive advantage.
If you are looking for a reputable outsourcing company to boost your projects, make sure to get in touch with us. MaxinAI is a team of 60+ Ph.D. level experts previously employed in companies such as General Electric, Trip Advisor, Zalando, etc.
Schedule a free consultation call with our experts and let us show you how our talents can uplift your business!