Successful IT Outsourcing

Like almost all other industries and practices, IT outsourcing also has had its share of myths and misconceptions. While these myths haven’t been able to stop the flow of outsourcing, they have done some damage to small businesses that wanted to benefit from the numerous benefits of outsourcing their IT tasks. Let’s see and debunk some of the common myths running in this sector.

First of all, people think outsourcing is doing harm to the local economy. While I am not saying that jobs aren’t affected by offshore outsourcing, the hype that the practice of outsourcing is bad for the economy is a myth certainly. Ask yourself. If your business really benefits from a practice, won’t it be good for your local economy too. If you can reduce your expenses, won’t you be able to give your shareholders more profits. Then, most of the technology from fiber optic cables to internet telephony are manufactured and powered by western nations. So while offshore IT outsourcing can reduce some jobs, it brings others to cover up the gap.

Moreover, some companies hold the misconception that outsourcing to offshore staff is a shameful act. This is probably the influence of propaganda by people who are against outsourcing for their own reasons. However, many large multinational firms outsource IT tasks, not only to cut expenses but also to focus on their core competencies. In fact, the main philosophy behind business is to increase profit and to expand. By outsourcing, western companies benefit from the talent of an offshore population, which isn’t much different than hiring Indians living inside our own nation.

Some believe that outsourcing can result in higher expenses after you consider all the intangible costs associated with it. Yet some others think the savings from IT outsourcing are usually overstated. However, if you compare the hourly salaries of workers in Asian countries like India and Indonesia, you will realize that there are huge saving potentials. Moreover, you eliminate all the fixed costs associated with a larger workforce, like extra PCs, electrical devices, transport arrangements, etc. This significantly reduces risks for new and small businesses, and allows them to start with minimal investment. And with this statement, we also debunk the myth that outsourcing is feasible only for large-scale companies that have resources to monitor work in different regions.

Finally, there are some myths that actually arise because of poor work by some outsourcing providers. Managers and entrepreneurs in western countries usually don’t take the necessary measures to avoid outsourcing failures because they lack experience in this regard. For example, people think your offshore service provider will never deliver with time. This has actually more to do with good selection than offshore outsourcing. You can even find people in your own country who won’t meet deadlines.

Then, many a people face communication problems while dealing with offshore workers. You can usually solve this problem using latest technologies like VoIP, frequent emails, and so on. These problems usually arise when you select individual service providers who take more projects than they can handle. So hire dedicated staff that would work for you and only for you.