Top Myths and Misconceptions about Outsourcing

On October 18, 2011, in Outsourcing, by Business Development Group

There will always be debate about the impact of outsourcing on workforce and the community; here are the debunked myths that’s been answered

A lot has been written on the evils and perils of outsourcing, particularly in offshore outsourcing. The debate on the impact of outsourcing is expected to continue especially with the present global economic conditions.  However, there are myths which need to be debunked as cited by the International Association of Outsourcing Professionals (IAOP).

Outsourcing always implies a loss of jobs.

Although, it may mean a loss of jobs for certain individuals and communities, it is not necessarily so when viewed in the global context.

Related article: Outsourcing Risks and How to Avoid Such

Outsourcing is always a “step back” for employees involved.

In most cases, outsourcing allows the employees to join an organization whose core business is providing the services based on skills they possess and hence, they will have a great chance for advancement and learning.

Related article: In Brief – Definition of Outsourcing and Offshoring

Businesses outsource to rid of their problems and they are better off addressing these problems themselves.

As it has been outlined through standards and discussion, companies need to take a strategic look at the functions for outsourcing and not just view it as a “fast cure” for a problem. By outsourcing, a company is inviting experts to address problems and help fix it before it gets so bad that it will have a negative impact on the entire business – thereby creating a greater issue with the workforce.

Related article: Speech Recognition Solution

Economy suffers when companies use outsourcing as the only management tool.

On the contrary, outsourcing allows companies to focus on their core businesses and at the same time engage a professional company to perform the necessary work at a higher productivity. Additionally, outsourcing has created a large industry and major industries that have built their business around outsourcing as its discipline.

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