Debunking Myths About Outsourcing and Offshoring: Myth or Fact?

In today’s civilized world, outsourcing and offshoring are becoming more and more popular strategies of task delegation that spread like wildfire not only for startup businesses but also for those big-time business owners who outsource talents with unique expertise in certain fields.

Therefore, if you’re considering outsourcing tech solutions and customer support services, the Philippines presents a wealth of advantages to explore because Filipinos have so much more to offer beyond karaoke battles!


We are here to debunk all the unfolded myths and misconceptions


 

1. Outsourcing and Offshoring is just the same

In the simplest terms possible, when it comes to workload and work scope, these two differ which makes it a MYTH.

Here’s a FACT:

 Outsourcing involves engaging a third-party provider to handle tasks and services on behalf of a company. These external providers, often referred to as “outsourced” personnel, actively participate in client projects, assigning requisite tasks to a skilled workforce equipped with the necessary resources and labor capabilities. This delegation of functions to a third-party vendor commonly entails assigning non-core work or specific portions of a project, which may or may not be situated in the same location as the client’s operations.

Offshoring is the process of sourcing the best remote team members to provide qualified and highly skilled professionals who will fit the business and contribute to its growth. It entails more demanding roles, such as those in online and app development or complicated technical research, which are handled by the offshore workforce. It also involves moving jobs or operations to another country, relocating complete business processes, having better availability of skilled people, and getting work done faster through a global talent pool or person. 

2. Loss of control of the business

In companies that engage in offshore outsourcing, it’s common to worry about communication and coordination challenges due to operations being set up overseas. Many believe that without the business owner present, staying in touch 24/7 or coordinating effectively might seem daunting or even impossible–MYTH!

The FACT here is that you have the right as the business owner and the opportunity to remain involved in each process and retain authority over your business. 

Indeed, there are everyday tasks that need minimal supervision, and as a business owner, it’s crucial to establish clear communication channels and set expectations from the outset. Implement regular check-ins, provide detailed instructions or guidelines, and request progress reports or updates. 

Utilize project management tools or software to track tasks and monitor performance. 

Additionally, consider offering training or support to ensure that outsourced personnel understand the requirements and standards of your business. 

3. Loss of control of the business

It is indeed true that outsourcing/offshoring entails risk, and it is a common misconception that because of improper and infrequent monitoring, the services will be highly compromised, but no.

The FACT is your business functions will be handled by professionals and experts so that you can guarantee outputs. Take SOPHI as an example.

Agents and experts at SOPHI undergo extensive training and best practices to deliver exceptional service that aligns with client expectations and SOPHI’s standards to ensure your remote team is performing well. SOPHI ensures the competitiveness of its agents through their commitment to quality work, leveraging their Filipino expertise.

4. Outsourcing only focuses on and is accessible to big businesses.

MYTH! Outsourcing or any BPO company chooses no size. You may think why, and it’s because they aim to establish themselves as the preferred service providers for these expanding companies over the long run.

Another FACT is that, according to Science Direct, Companies have often taken their first outsourcing initiatives in the area of information management; some have carried the concept into almost every facet of the business.”

As per Deloitte’s 2016 survey findings, 23% of outsourcing companies reported annual revenues of $25 million or more. This statistic underscores the significant involvement of both large enterprises and small to medium-sized businesses in the outsourcing sector. (See Figure 1 below)

4. Outsourcing is not a long-term solution

For some individuals, they believe that outsourcing is only suitable for the short term because they focus on tasks that are outsourced and perceive them as lacking in value addition, but in reality, it’s just MYTH

The FACT is, corroborating the point in item number 4, BPO Companies prioritize long-term clients just as much being, irrespective of their business size, because long-term clients secure a long-term source of revenue and cash flow. 

Additionally, BPO companies want long-term clients as well because they aim to establish exceptional service and build a reputation in terms of outstanding customer service and in various fields being the leading service provider. 

Forging a lasting collaboration with BPOs has the potential to elevate the caliber of outsourced services, resulting in mutual benefits for both entities involved.

Outsourcing, when executed effectively, is a strategic maneuver capable of delivering significant advantages to businesses regardless of their scale.

 

Through the debunking of these myths, we aim to provide a clear and accurate portrayal of the true potential of outsourcing.

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Figure 1. Infographic from Deloitte’s 2016 Global Outsourcing Survey