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Successful Offshoring to The Philippines

Outsourcing Myths You Need To Stop Believing

by | Outsourcing

The trend of business outsourcing has seen a great rise in the past few decades. Businesses have realized the importance and benefits of opening up business units in other parts of the world. There have been a lot of success stories from businesses that were at a halt in their home country but saw great success when they took their businesses outsource. Even though there have been so many success stories, people tend to focus on several myths surrounding outsourcing, thinking and absorbing it as the truth instead of as they are — myths.

Common Myths about Outsourcing


Outsourcing Isn’t As Cost Effective As Believed

The critics believe that business outsourcing isn’t as cost-effective as it is believed to be. This is a completely baseless myth. Of the mere reasons companies outsource is to take advantage of a more favourable financial situation.

Keep in mind that financial and tax laws vary from one country to another, creating a more sustainable environment for business owners who want to take advantage of such an opportunity. Aside from directly saving costs, it increases a business’s margin of profit or spending allowance that can be allocated to greater sales activities that can boost the company’s sales activities.


Jobs Search Outsourcing Myths


It Takes Away Jobs From The Home Country

Another common myth associated with outsourcing is that it takes away important jobs from your home country. This opens very heated debates between pro-outsourcing businesses to establishments faithful to the local markets.

Outsourcing actually creates job and greater opportunities, especially for SMEs. Many start-ups and micro-businesses struggle to expand the company, not because of the lack of try but because local employment costs tend to be expensive. Note that SMEs don’t have a lot of spending money on everything they need to sustain within the company. Employing outsource talents help them build up their businesses which later gives them the capability to hire local talents to help them manage the business better.

How about big companies? There are only as many jobs these businesses can outsource before they return to hiring local companies. Remember, no talents across the globe don’t have as much knowledge of your home country as your local talents. Businesses only succeed when they have the right team to help the business function properly.

Outsourcing is not a short-term solution, it’s a long-term solution that will help local business create more local jobs and in return, help stabilise the economy of your country.


Outsourcing Is Limited To Specific Sectors

Many people believe that outsourcing is only for IT-related companies. They do believe in the benefits of outsourcing but they feel that these benefits can only be enjoyed by IT-related companies.

This myth cannot be more wrong. As proven by countries like the Philippines, outsourcing is available to all industries and sectors willing to put in an effort to build the processes that will later benefit their company. Industries like Medical, Engineering, Accounting, end even Marketing are enjoying the harvest of their labour as they continually reap great benefits from their outsource accounts.

If you’re a company looking to expand, it’s not a question of “is my industry fit for outsourcing?” it’s more of “how can I make outsourcing work for my company?”


Cultural Diversity Outsourcing Myths


Cultural Barriers Are Unavoidable

Some people take the difference in culture as an opportunity to learn more about others while there are many that take it as a barrier. Having a diverse culture is a great opportunity to learn about each other’s history that will enrich both parties’ knowledge. The key to breaking cultural barriers are respect and openmindedness.

Companies should be creating a culture where all employees with diverse backgrounds can celebrate and freely express themselves without getting criticised for their uniqueness and individuality.

The greatest example of a growing business fostering a diverse culture is a BPO company. BPOs yielded great results for welcoming applicants from all walks of life and success wouldn’t be possible if they let cultural barriers hinder their goals.


Communication Isn’t Good

Miscommunication is a problem in any company, be it a large corporation or a start-up business with two employees. The biggest miscommunication there is in a diverse community is having different lingos and terms used in conversations as languages differ from one country to another.

Many critics believe that difference in language can affect the productivity and performance of the business which is why smooth communication is achieved by several trials and errors between workers.

It’s important to build the right foundation of a company to minimise the causes of unproductivity like a miscommunication between the staff of the company. Having established the right company culture breaks all types of barrier, giving way to creating a builder and greater culture and harmonious relationship between employees from different backgrounds.

There are countless myths circling outsourcing and outsourcing. There are those who believe these myths while others take courage and pursue outsourcing. There is no denying that outsourcing and outsourcing work! These outsourcing myths can easily be debunked by various successful outsourcing stories that continue to thrive in this competitive industry. Are there other outsourcing or outsourcing myths you believed in?

Talk with with us, and we will help you in your offshoring in the Philippines journey.

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