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IT Outsourcing Misconceptions Debunked

by: Sarah Joson

Thursday, October 3, 2013 | Outsourcing News |

After all these years, a lot of business owners and IT executives are still unconvinced about the benefits of IT outsourcing, and what its true meaning is. Some are discouraged by hearsays, while others just do not believe that through a proper process, it can be really advantageous to an organization.  

An article at Business2Community.com shares seven IT outsourcing myths:

1. Only big businesses can outsource.
IT outsourcing is often talked about in large sums of money whether it’s in the news or business forums, which is why numerous small and medium-sized business owners started to believe that only large and established organizations can make use of outsourcing. This is not true - any size and type of business can incorporate outsourcing to their day-to-day operations.

There would still be cost savings for small businesses when they outsource, because apart from having skilled professionals to work on the issues, service providers are equipped with the necessary tools as well.

2. Outsourcing is for bulk operations.
When one says IT outsourcing, some people think that it involves the entire IT setup of a company. This is not the case. Most IT service providers accept outsourcing contracts that only require them to work on a portion of the company’s IT operation.

3. Outsourcing service providers are always slacking off.
Service providers operate externally. A lot of people think that since there’s nobody to monitor these providers closely, they are slacking off and that they only go about their tasks during important events such as reporting time and scheduled meetings.

A good service provider makes sure that they communicate with their clients properly. Clients can also ask their outsourcing partners to give them regular updates about the operations.

4. There is confusion on who’s in control.

Majority of those who want to outsource think that once a contract is signed with a service provider, the keys to the IT ship will be handed over as well. In reality, clients remain as the key decision makers of an operation and service providers are only there to perform tasks and make suggestions.

5. Clients will be stuck in the contract.

Another misconception about IT outsourcing is when a contract is inked, clients can no longer turn back or make changes. IT contracts nowadays are more flexible, providing more control to the clients.

6. Outsourcing is more expensive than having an internal IT team.
No matter how people put it, outsourcing is still more economical, even in the long run, than having a team that will work full-time. It is mandated that in-house employees should have the proper benefits and pension, along with the right salaries and work stations that would have to be maintained by the employer. Imagine how much it would cost for a large company to do that.

7. Outsourced operations always happen offshore.

People always think that outsourcing always involves a third party service provider in a far flung location where labor and operational costs are much lower. Outsourcing can also be done in the same country where the client is based. Processes can likewise be outsourced to a neighboring country.

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