March 24, 2023

Top 10 Outsourcing Myths to Debunk in 2023

Many people assume that IT service outsourcing means lower-quality work. This is not necessarily true, as many highly skilled developers work in countries such as Eastern Europe.

Some people worry that outsourcing their development work will result in data breaches or other security issues. While it is crucial to work with a company that takes security seriously, many reputable outsourcing companies have strong security protocols in place. In this blog post, we collected the most common outsourcing myths and tried to debunk them.

1. You Will Lose Control of Your Business while outsourcing IT service

You won’t lose control over your business if you outsource tasks or services to another company or individual. Outsourcing can give you more control over your business because it allows you to focus on your core competencies and strategic priorities. By delegating tasks to a third-party provider, you can free up your time and resources to focus on the areas of your business where you can make the most impact.

When outsourcing, it is crucial to select a reputable provider and establish clear communication channels to ensure that your business requirements and expectations are met. You should also establish performance metrics and regularly review the provider's performance to ensure that they are delivering the desired results.

Outsourcing can be a valuable tool for businesses to increase efficiency and focus on strategic priorities, without sacrificing control over their operations.

2. Outsourcing Is Only For Big Businesses

Outsourcing can benefit businesses of all sizes, from small startups to large corporations. Here are some reasons why:

• Cost savings: Companies who are outsourcing can help smaller businesses save on costs by reducing the need for full-time staff, office space, and other expenses associated with maintaining an in-house team. Outsourcing providers can offer services at a lower cost due to economies of scale, allowing smaller businesses to access high-quality services that they may not have been able to afford otherwise.
• Scalability: Outsourcing can help smaller businesses to scale their operations quickly and efficiently, without the need for significant investments in infrastructure and resources. Outsourcing providers can offer flexible services that can be easily scaled up or down depending on the needs of the business.
• Access to specialized expertise: Companies who are outsourcing can offer access to specialized expertise and knowledge that may not be available in-house. It can be especially beneficial for smaller businesses that may not have the resources or expertise to handle certain tasks or projects on their own.
• Focus on core competencies: Outsourcing can allow businesses to focus on their core competencies and strategic objectives while leaving non-core activities to the experts. It can help smaller businesses to improve their overall efficiency and competitiveness.

As you can see, outsourcing is not just for big businesses. Smaller businesses can also benefit from outsourcing by reducing costs, accessing specialized expertise, scaling their operations, and focusing on core competencies.

3. Your Company’s Privacy and Security Will Be At Risk

One of the most persistent myths about outsourcing is that it puts your company's privacy and security at risk. However, this isn’t true.

First of all, outsourcing can improve your company's privacy and security measures by allowing you to access the expertise and resources of specialized service providers. Many outsourcing companies have extensive experience in developing and implementing robust security protocols, including encryption, firewalls, and access controls, which can be difficult and costly for smaller companies to develop in-house.

Moreover, outsourcing firms are often subject to strict regulatory requirements and industry standards that help ensure they maintain high levels of security and privacy. For example, outsourcing firms that handle sensitive data or financial information may be required to comply with regulations such as the Payment Card Industry Data Security Standard (PCI DSS) or the Health Insurance Portability and Accountability Act (HIPAA).

Outsourcing companies typically have internal security and privacy policies that are designed to protect both their operations and their client's data. These policies may include regular security audits, employee training, and incident response plans, among other measures.

Of course, there is always some level of risk involved in outsourcing, just as there is with any business activity. However, the idea that outsourcing necessarily puts your company's privacy and security at risk is a myth.

By carefully vetting and selecting reputable outsourcing partners, and working collaboratively with them to establish clear security and privacy protocols, you can improve your company's overall security.

4. Outsourcing is Cheap Resulting To Poor Quality

The myth that outsourcing is cheap and results in poor quality aren’t true. While outsourcing can be a cost-effective way to access specialized skills and expertise, it is important to understand that the quality of the work produced is not solely dependent on the outsourcing arrangement itself, but rather on how the outsourcing is managed.

One of the main factors that determine the quality of outsourced work is the selection of the right outsourcing partner. A good outsourcing partner will have a team of skilled professionals with expertise in the required area of work, and a track record of delivering high-quality output. By selecting the right partner, you can ensure that the work delivered is of high quality.

Another important factor that impacts the quality of outsourced work is the communication and collaboration between the outsourcing partner and the client. Effective communication and collaboration are crucial to ensuring that the outsourced work meets the desired quality standards. Regular communication and feedback can help the outsourcing partner to understand the client's expectations and make necessary adjustments to improve the quality of the work.

It is essential to clearly understand the outsourcing contract, including the scope of work, timelines, and quality standards. By setting clear expectations and ensuring that the outsourcing partner understands the requirements, you can reduce the risk of poor-quality work.

Outsourcing can be a cost-effective way to access specialized skills and expertise, but it's important to manage the outsourcing arrangement effectively to ensure that the quality of the work is not compromised. By selecting the right outsourcing partner, maintaining open communication and collaboration, and setting clear expectations, you can ensure that the outsourced work meets the desired quality standards.

5. It Reduces Your Existing Workforce

The idea that outsourcing reduces your existing workforce is a common myth that has been circulating for years. However, there are several reasons why this is not necessarily the case:

• It can lead to job creation: When a company outsources certain tasks or functions to a third-party provider, it can free up internal resources to focus on core business activities. This can lead to increased productivity and growth, which may ultimately result in the creation of new jobs within the company.
• Outsourcing can enable companies to scale quickly: If a company experiences a sudden increase in demand for its products or services, it may not have the resources to scale up its operations quickly. By outsourcing certain tasks, the company can quickly ramp up production without having to hire additional employees.
• Outsourcing can lead to cost savings: By outsourcing certain tasks to a third-party provider, companies can often achieve cost savings through economies of scale and reduced overhead costs. This can free up resources that can be reinvested in other areas of the business, potentially leading to job creation.
• It can help companies stay competitive: In today's global marketplace, companies need to be agile and adaptable to stay competitive. By outsourcing certain tasks, companies can access specialized expertise and technology that may not be available internally, allowing them to stay ahead of the curve and maintain their competitive edge.

Outsourcing can enable companies to scale up quickly, achieve cost savings, and stay competitive, potentially leading to job creation and growth within the company. However, it's important to approach outsourcing strategically and carefully to ensure that it aligns with your overall business objectives and goals.

6. Time Zones Make It Impossible to Cooperate Productively

It's a common misconception that time zones make it impossible to cooperate productively, but this simply isn't true. While time zone differences can present some challenges, there are many ways to work around them and collaborate effectively across different regions and time zones. With modern technology, it's easier than ever to work remotely. This means that you can schedule meetings and communicate with the team at times that work for everyone, regardless of where they're located. Many companies are embracing flexible scheduling to accommodate employees in different time zones and allow for more collaboration.

When working with an outsourced team in different time zones, it's important to plan and communicate clearly about schedules and deadlines. It will help to ensure that everyone is on the same page and knows what's expected of them. It's also important to be proactive about communication, using tools like email and instant messaging to stay in touch and share information as needed.

There are many tools and technologies available that can help facilitate collaboration across time zones, such as video conferencing, online project management tools, and shared calendars. These tools make it easy to communicate and share information regardless of where you are in the world.

7. Outsourcing is not a long-term solution

Outsourcing can be a sustainable and effective long-term solution for companies. One of the primary reasons that companies outsource is to save money. By outsourcing tasks to third-party providers, businesses can often reduce their labor costs, office space requirements, and overhead expenses. This can free up resources that can be reinvested in other areas of the business, allowing it to grow and expand over the long term.

Outsourcing can give businesses access to a broader range of talent than they might find locally. By outsourcing to global providers, businesses can tap into a pool of skilled professionals who are experienced in their respective fields. This can lead to higher quality work, faster turnaround times, and better overall performance. Also. it can help businesses scale up or down more easily in response to changing market conditions. When a company outsources, it can quickly add or subtract resources as needed, without the long-term commitments that come with hiring full-time employees. This can be particularly beneficial for small and medium-sized businesses that need to be agile and adaptable to survive in today's fast-changing business environment.

While outsourcing may not be the right solution for every business, it can be a sustainable and effective long-term strategy for many. By reducing costs, providing access to talent, promoting scalability, and enabling businesses to focus on their core competencies, outsourcing can help businesses stay competitive and thrive over the long term.

8. Outsourcing product development is much slower than in-house

Outsourcing can often be faster and more efficient than in-house development:

• Outsourcing can provide access to specialized expertise that might not be available in-house. For example, if you need to develop a mobile app, you might not have mobile app development expertise on your team. By outsourcing to a company that specializes in mobile app development, you can tap into their expertise and complete the project more quickly and efficiently.
• It can provide scalability that might not be possible in-house. If you need to ramp up development quickly, it can be faster to outsource to a company that can handle a larger workload, rather than hiring and training new employees in-house.
• Outsourcing can help reduce overhead costs such as office space, equipment, and benefits. By outsourcing to a company that already has these costs accounted for, you can save time and money on setup and administrative tasks.
• Outsourcing to a company in a different time zone can speed up development. When your team is done for the day, the outsourcing company can continue working on the project, essentially providing 24/7 development.

By outsourcing tasks that are not within your team's expertise, you can avoid delays and improve overall project efficiency.

9. Outsourcing Comes with Language and Cultural Barriers

The myth that outsourcing comes with language and cultural barriers is not entirely accurate. While there may be some language and cultural differences when working with an outsourced team, these barriers can be overcome with proper communication and collaboration strategies.

Firstly, it's important to note that many outsourcing providers have a strong command of the English language, which is often the language of business. Additionally, many providers have employees who are fluent in multiple languages and can communicate with clients in their native language.

To address cultural differences, it's important to establish a shared understanding of each other's cultural norms and values. This can be achieved through cultural sensitivity training, cross-cultural communication coaching, and regular communication between team members.

When facilitating effective communication, it's crucial to establish clear and consistent communication channels, such as video conferences, email, instant messaging, and project management tools.

Moreover, by leveraging the expertise and resources of a diverse team, businesses can increase their competitiveness and achieve their goals more efficiently.

10. Outsourcing Only Cuts Operational Costs

The myth that outsourcing only cuts operational costs is not entirely accurate. While it is true that outsourcing can help reduce operational costs, there are other benefits that outsourcing can provide, such as:

1. Access to specialized expertise: Outsourcing can provide companies with access to specialized expertise that may not be available in-house. For example, a company may outsource its IT service to a provider with specialized skills in that area, which can lead to better quality work and faster problem resolution.
2. Flexibility and scalability: Outsourcing can provide companies with greater flexibility and scalability. For instance, if a company experiences a sudden increase in workload, it can easily ramp up outsourcing services to meet the demand, and then scale back down when the workload returns to normal.
3. Reduced risk: Outsourcing can help mitigate risk for a company by transferring certain risks to the service provider. For example, if a company outsources its accounting functions, it reduces the risk of accounting errors and fraud.

Why Outsourcing with Stfalcon Makes Sense?

Working with us, you gain access to a team of experienced devs who can bring a range of technical skills and knowledge to your project. This can help you save time and money on hiring and training in-house staff, and ensure that your project is completed on time and to a high standard.

Outsourcing software development with Stfalcon can be a cost-effective solution compared to hiring an in-house development team. Stfalcon has the infrastructure and resources necessary to manage a team of developers, so you don't have to worry about overhead costs such as office space, hardware, and software licenses.

Outsourcing IT services with Stfalcon can be a scalable solution, as you can easily adjust the size of your development team depending on your needs. It will help you save money by avoiding the need to hire and train new staff members as your business needs change.

We have a quality assurance process in place to ensure that your software is thoroughly tested and of high quality. This can help you avoid costly bugs and errors in the software, and ensure that your product meets the needs of your users.

Bottom Line

When outsourcing development work, some people worry that they will lose control over the project and won’t be able to ensure that it meets their standards. However, by working with an experienced outsourcing company and maintaining open lines of communication, clients can stay involved and provide feedback throughout the development process.

IT service outsourcing with Stfalcon can be a smart decision if you want to save time and money, and ensure that your software is of high quality.

For ensuring, contact us, a free consultation is available. It's important to carefully evaluate your options and choose a vendor that aligns with your specific needs and goals.