Providing news, views and unrivaled content for the global sourcing community

 

 

5 Common Outsourcing Misconceptions

Posted: 04/28/2018 - 00:08
Five common misunderstandings for companies as they set out on their journey for the first time.

Outsourcing or nearshoring IT experts can be commonplace for some companies. These companies will likely understand both the business and technical benefits that outsourcing teams can bring to a project or organisation. As more businesses become driven by technology, demand for skilled IT workers will continue to grow in 2018, driving more companies to turn to outsourcing IT roles. 

For those companies that are only beginning to outsource, or are unfamiliar with what it entails, misconceptions can occur which hinder what should be a mutually beneficial relationship. 

Here are five common misunderstandings for companies as they set out on their journey for the first time. 

No strategic plan 

Outsourcing teams might be enlisted at the beginning of a project or midway through the project. Whether they are there from the start, or brought in to help fix an ongoing problem, they are part of the project’s strategy. 

Both the organisation and the outsourcing team will have a strategy and need to align these strategies at the beginning of the partnership to ensure that they work together and optimise their offerings. 

Company communication breakdown 

If an organisation is outsourcing a team of experts for the first time, they might believe that the communication within the company or project will be disrupted or that job roles will become diluted. This doesn’t have to be the case. 

By discussing and deciding the chain of command for project owners and team members before the project begins, there won’t be a loss of communication within the organisation, as each team member will understand their individual and team role. A good outsourcing company will set up an optimal communication model for working which ensures adequate face time and collaboration through all aspects of the project. 

Company culture is disrupted 

Similar to the communications concern, some organisations might be concerned that their company culture will be interrupted if an outsourcing team is brought in. Company culture is important in any organisation, so it’s crucial that it doesn’t change if new individuals or teams are introduced to the company or project. 

Although disrupted company culture is a concern for some organisations, outsourcing teams can adapt and even add to the company culture. If diluting the team dynamics is an issue, organisations should choose to nearshore instead of outsource. By working with a nearshoring team from a neighbouring country or location, it is likely that the two teams will have a similar understanding, in addition to a shared language and time zone. 

There will be a conflict of interests 

A concern for some organisations is that the company which is running the project will have a conflict of interest with the outsourcing team. However, outsourcing teams aren’t there to take over. The role of an outsourced or nearshored team is to offer and share their knowledge and expertise with the company, rather than make decisions and create conflict with the client. The decision making and reporting process should be clearly outlined at the beginning of any joint collaboration. 

Only big businesses need outsourcing 

Surely only big organisations have the requirement and budget for outsourcing...right? That’s incorrect. Both big and small companies can reap the benefits of outsourcing and nearshoring. For example, small businesses can benefit from improved efficiency and flexibility in their organisation. Outsourcing can have a direct impact on businesses in various sizes...it is not solely for larger organisations. 

Whether it’s for smart city development or a machine learning project, outsourcing IT experts can positively impact organisations around the world. Outsourcing is set to grow and flourish in coming years, so it’s important for outsourcing myths and misconceptions to be busted and for organisations to understand the technical, business and financial benefits outsourcing and nearshoring teams can bring.

Region: 

About The Author

Jaroslaw Czaja's picture

Jarosław Czaja is Founder and CEO of Future Processing, a high-quality Polish software development outsourcer. As an Ernst & Young Entrepreneur of the Year Award Finalist, Jaroslaw is responsible for the day-to-day running of the company, as well as its growth strategy.