February 16, 2024
Despite outsourcing being an established industry, some businesses still avoid hiring developers offshore due to negative notions on its safety, legality, and reliability. On the contrary, the fact that many businesses like IBM & many medium-sized enterprises outsource means that it is still an effective and efficient business solution. To finally clear things up, we list down 8 outsourcing myths and misconceptions to debunk them once and for all.
If there was one thing that businesses think of outsourcing, it’s that cheap equals poor quality. Because of poor services provided by some outsourcing firms, hiring developers offshore was not something businesses considered as a strategic advantage.
REALITY: This can happen if you work with the wrong outsourcing partner. Popular outsourcing destinations such as the Philippines, India, and Vietnam, among many others, produce thousands of IT professionals yearly. Each country’s tech workforce have continuously increased their skill sets to bring a competitive edge to the global tech industry and produce quality output.
Also, take note that time can also be a factor in producing poor outputs. As some companies outsource to meet their deadlines, quality can be compromised due to time constraints. To avoid this being your situation, look for an established offshore partner offering reasonable prices and a great track record of working with different companies.
Many believe that one of the main disadvantages of hiring developers offshore is the cultural and language barrier. Since most popular outsourcing destinations are from non-native English-speaking countries, differences in language, customs, and behaviour can cause misunderstanding and delay on both sides.
REALITY: According to the 2017 EF English Proficiency Index, the Philippines is one of the top English-proficient countries ranking 15th out of 80 countries even topping some countries from Eastern Europe. The country also ranks 3rd out of 20 countries in Asia. This comes as no surprise as the Philippines have had consistently high literacy rates. According to the UNESCO Institute for Statistics, the Philippines consistently had a literacy rate above 90% since 1995 for 15 years and older. These high English proficiency rates are among the reasons why the Philippines and other IT offshore countries are chosen as top outsourcing destinations.
Businesses stay away from outsourcing to avoid the hassle and inconvenience that comes with the time difference.
REALITY: Most offshore providers operate at the same time zone as their client, creating a hassle-free experience for both sides. You just have to find a provider the offers the best set-up based on your needs.
Famous tech brands like Google and IBM are known for outsourcing their development and back-office at a large scale. Hiring developers offshore give large companies a great advantage as they can operate on a wide scale without spending too much. Because of this demand, most outsourcing firms usually only cater to large tech firms.
REALITY: Although offshore providers mostly cater to larger companies, there are some that work with small businesses as well. In fact, the top IT outsourcing consumers are small and medium-sized enterprises (SMEs). Outsourcing companies also love to work with SMEs that have a lot of potential to grow as they are more likely to become long-term partners. No matter the size of a company, both large and small businesses can take advantage of the benefits of outsourcing.
Since operations and development happen offshore, many companies think that they won’t be able to supervise or monitor their offshore developers properly. Because of this, they see outsourcing as a risky business decision that could go out of control if not properly managed.
REALITY: Having no control over your outsourced team is an old-fashioned thinking. With the availability and accessibility of many project management tools, you can barely feel any difference working with an on-site and offshore team these days. Online project management tools and communication apps help businesses and offshore teams communicate and collaborate easily.
Since outsourcing means allowing a third party to handle your operation and data, many businesses fear that outsourcing firms will misuse their data or have weak cybersecurity measures. This is a valid concern for businesses.
REALITY: While this is a major concern, know that offshore providers comply with standard security measures depending on the client and outsourcing firm’s company and country regulations. The best offshore firms are usually equipped with the latest security software to ensure that their client’s data is safe from any threats.
In fact, according to EY’s 2016-17 Global Information Security Survey, 56% outsource their company-specific cybersecurity activities. Even with highly confidential activities such as cybersecurity and monitoring, some businesses choose to outsource these functions as it helps not only to cut costs but also to find expert cybersecurity professionals.
To further strengthen security between your business and offshore provider, it is recommended to outline the specific security regulations, measures and liabilities in your contract.
Many people believe that businesses only outsource to avoid taxes and to exploit workers from developing countries. Some also think the fact that the business is set up overseas is already sketchy.
REALITY: Whether offshoring is illegal is actually a frequently discussed misconception. Businesses outsource not to avoid taxes and exploit foreign workers but to find the right human resources for specific projects. Know that both the client and outsourcing destination’s country have legal processes to protect the safety of both sides.
To ensure that you and your outsourcing provider abide by the law, make sure you know the rules and regulations within your own country and research about your provider’s country as well. Get to know your outsourcing partner by checking their team structure, management capability, and past experience.
Related Article: Top 9 Criteria for Choosing The Right IT Outsourcing Partner
Most of the services that outsourcing offers are non-value-added tasks and consultation services. In addition, most businesses outsource just to fill in a position for short projects. Because of its services and project span, businesses think that outsourcing is only good for short-term plans.
REALITY: Long-term outsourcing is actually a good business investment. Not only can clients continuously save on an outsourced project or task, clients also gain a valuable business partner. As offshore providers are trained to come up with business solutions to your needs, the longer you work with them allows them to get to know your business goals and process so they can provide a better business solution. Your offshore partner can help you make processes more efficient and develop better products or services.
Working with an offshore provider means having a dedicated strategic business partner who’s ready to solve your IT outsourcing needs.