Despite the popularity of IT outsourcing, there are several misconceptions surrounding its general principle of operation. While we can’t cover all the myths surrounding IT outsourcing, we try to focus on the most common ones here:
Myth 1: IT outsourcing hampers productivity
There is a widespread belief that when a customer opts for IT outsourcing, the overall productivity of the business may decrease due to various barriers in terms of culture, distance, communication, and time that exist.
Fact 1: Productivity increases when IT outsourcing is chosen
Excellent English skills and superior technical knowledge possessed by IT outsourcing company employees ensure productivity increases despite time and cultural barriers. In addition, most of the companies that offer IT outsourcing work according to the time zone of their clients, which guarantees uninterrupted IT activities. In most cases, the IT outsourcing provider appoints an on-site project manager to carry out coordination between on-site client managers and offshore team members.
Myth 2: Global customers choose IT outsourcing to cut costs
A company’s costs surely see a reduction when IT activities are offshoring. This is the only reason why clients opt for IT outsourcing.
Fact 2: Simplifying the way IT activities are carried out
Customers often seek technical experts to develop a technical product or application after freezing the requirements. Hiring internal employees and training them is time consuming and requires specialized attention that employers cannot do without.
Then, clients outsource such development activities to IT experts, who help to give their ideas a credible and workable form in the form of a software product.
Myth 3: It’s about cheap labor
Most of the time, people associate the term “cheap labor” with IT outsourcing.
Fact 3: Quality, innovation and strength of specialized skills
The main goal of IT outsourcing is to find a modestly priced vendor that specializes in delivering high-quality results, has pre-defined methodologies, and exhibits IT innovation.
Myth 4: IT outsourcing can be done with everything
This is not really possible. However, some global customers and software companies try to make this happen.
Fact 4: Study, Analyze, Decide on IT Outsourcing areas
The software company must thoroughly understand the customer’s requirements and conduct a feasibility study. If business needs cannot be met by offshoring of IT activities, then there is no point in considering IT outsourcing.
Myth 5: Job cuts, job cuts, job cuts!
IT outsourcing is considered to be the main culprit in multiple natives being out of work. However, there are several studies and research that show that this is not the case.
Fact 5: Economic growth
It is about obtaining the maximum performance, with a minimum of inputs for the country’s economy when outsourcing IT. Consequently, it is considered that constant economic growth will generate more employment opportunities for the natives.
