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Debunking Common Outsourcing Myths .pdf



Original filename: Debunking Common Outsourcing Myths.pdf
Author: Dhupam D. Nagamaheswari

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Debunking Common
Outsourcing Myths
What is Outsourcing
Outsourcing has long been a strategic business practice and is a way of reorganizing or relocating
a part of a company’s functions to a 3rd party, to boost productivity and improve business
functions.
Despite the numerous benefits that outsourcing can bring to the table, many first-timers or
companies remain oblivious to the obvious and prefer handling all functions in-house due to the
many myths and misconceptions associated with outsourcing.

Myth #1

Fact #1

The Main Incentive For Companies
To Outsource Are Reduced Costs

Companies Outsource For
Other Reasons Than reducing
Costs

Reduced costs may be ‘one’ of the incentives to outsource a function but definitely not the main
reason anymore. Rather, the quality of the services provided and the quick access to specialist
service providers who can complete a job in a much more efficient manner than an in-house
employee, have become some of the major impetuses to outsource.

Myth #2

Fact #2

There Will Be Cultural &
Language Disparities

Outsourcing Companies Are
Trained To Handle Cross-Cultural
Exchange

Apart from being just a myth, cultural and language disparities are also some of the greatest fears
for first-time outsourcers. Most outsourcing companies hire qualified professionals that are
experienced in cross-cultural exchange and are proficient with multiple languages, including
English. Virtual Assistants India, Russia and Philippines are at the top of the league when it comes
to deploying professional customer support teams who are both, fluent and familiar with
multiple cultures and the English language.

Myth #3

Fact #3

Clients Have No Control Once
The Job Is Outsourced

You Have As Much Control As
You Would With An In-House
Team!

This is one of the most prevalent outsourcing myths and is not as difficult to manage as most
companies or people would like to believe.
Frequent information-exchange and communication is a necessity and the more you exert
control over an outsourcing company, the better your results and your virtual personal assistants’
efficiency. By providing feedback, you will not only be encouraging your virtual PA to do better,
but you will also be establishing a great working relationship.

Myth #4

Fact #4

Outsourcing Is For The Big
Companies

Small Business Enterprises Have
Benefited More With Outsourcing In
The Recent Past

No one can take away the fact that large enterprises have made the best use of outsourcing in
the past, but let’s not forget the scale on which these big companies outsourced.
More small businesses are taking to outsourcing today to add value, know-how and experience
to their business functions. It is all the more important for small businesses to focus on their core

functions and grow their business rather than spend all their valuable time on laborious jobs that
can be handled by professionals.

Myth #5

Fact #5

Outsourcing Is Risky

Your Thinking Is Risky

Outsourcing companies on the other hand, have only grown and made their security policies
more stringent. Experienced outsourcing providers and virtual assistant companies have always
understood the importance of data security and these practices have always been treated with
the highest priority.

Myth #6

Fact #6

Outsourcing And Offshoring
Are The Same

No, They Are NOT!

You may have noticed that ‘outsourcing’ and ‘offshoring’ are interchangeably used, but they
are definitely not the same. Outsourcing involves paying a 3rd party or a company providing
virtual assistance services to complete your work for you. Offshoring on the other hand, means
relocating or moving your business efforts wholly to another country, instead of just hiring a
company to handle key components of your business.

Thank you


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