Outsourcing has been around for quite some time now and has already become a norm in doing business. In fact, as of 2019, the global outsourcing revenue has already amounted to 92.5 billion US dollars. Moreover, more and more business is using this method for a lot of reasons, like saving money and using it more efficiently. However, despite its benefits, there are still many people who are skeptical about it. Mostly due to the lack of information or unfamiliarity with the industry and subject.
Here are some common misconceptions about outsourcing.
You Lose Control of Your Business
One of the most common misconceptions about outsourcing is losing control of one’s business. This belief is not true, in fact, it can help an entrepreneur have better control of its business by transferring non-core and repetitive tasks to a firm. In effect, it gives the business owner more resources and time to work on strategic tasks to expand the company and produce more revenue.
The Only Benefit of Outsourcing is Cost-Cutting
While it is true that outsourcing helps a company cut its operational costs, it is not the only benefit or reason for outsourcing. Other benefits of outsourcing include the following:
a. streamlining the process
b. increase productivity and efficiency
c. helps a company focus on its core tasks
d. makes new or expensive technology accessible.
Those are just some of the benefits one can get from outsourcing. Depending on the company’s needs, there are more ways to benefit from this business method.
It Is Only for Big Companies
Since businesses have to pay another firm or people to do some tasks, many think outsourcing is costly. Thus the misconception that it is only for big companies. However, recent technological advancement has changed that. Also, there are different types of outsourcing. For example, offshoring, onshoring, or nearshoring, that businesses can choose from. Aside from offering a cheaper alternative, it also offers more choices on the processes you need to outsource.