The Myths of Outsourcing


Quite a number of misleading notions are being disseminated when it comes to outsourcing. This article attempts to explain each of these myths and the reason why it isn’t true.

1. Outsourcing can solve all of your company’s problems.

This myth, by far, is top on the list. If you’re having problems with your business, outsourcing is not a magic solution that can make them disappear in just a snap of your fingers. For instance, there’s this company who thought of outsourcing to the Philippines because what manpower they have could not keep up the number of  customer service calls they are receiving each day.

To cost cut, they thought of offshore outsourcing instead of hiring more employees. However,  an analysis of their call logs revealed that most of the calls pertained to the poorly designed software interface of the product. In this case, outsourcing couldn’t solve the problem.

2. Outsourcing enables you to save on expenses.

Well, this isn’t completely untrue because offshore outsourcing (most especially) can enable you to save on labor costs. It’s important though to keep in mind that this will largely depend in how well you negotiated your contract with your outsourced company.