Busting the Myths of IT Outsourcing

Dec 24, 2015 12:15:29 PM

Some enterprises are deeply dependent on outsourcing. But there are other enterprises, which thrive by limiting their outsourcing to a minor part of their overall IT operations, and they manage their core activities themselves. Then there are those enterprises, which don’t outsource at all, they achieve cost effectiveness and efficiency by doing everything in-house.

Different kinds of outsourcing models work for different businesses. What kind of outsourcing will be beneficial for your business will depend on the exact needs of your business. Many entrepreneurs are unwilling to make outsourcing a part of their business strategy because of the myths and misconceptions that are associated with outsourcing.

Myth #1. Outsourced Activities Are Out Of Your Control

In outsourcing you have to work with people who are stationed at remote locations and don’t get to meet you personally, but this does not mean that you are not in control of the project. The truth is that your IT partner’s business model revolves around doing a good job for you. If he fails to deliver, you will not renew the contract. In order to succeed in his business, he has to do a perfect job for you. You may not get to meet your outsourcing partner on a regular basis, but he will do his best to deliver the best quality product or service because it is in his self-interest to do so.

Myth #2. Outsourcing Stands For Low Prices And Low Quality

Why do companies outsource? Obviously to save cost. Does this mean that the outsourcing partner is charging lower rates and is delivering bad quality? Not at all. An outsourcing partner that delivers lower quality will not be able to survive in the competitive marketplace. A successful IT partner is one that charges lower rates and still delivers better quality. They are able to do this because they use better technology for doing the work and at times their development centers are located in places like India, where the cost of very well trained professionals is lower.

Myth #3. Outsourcing Works For Big Players Only

Many small and middle range businesses don’t go for outsourcing because they think that they are too small to take advantage of the outsourced model. In this model, the size of the business does not matter. After all, a business only outsources a small aspect of their entire business model. For instance, if you want to have an app developed, you will outsource the making of the app to any app development company.

Myth #4. Outsourcing Drags Time And Causes Overpays

If you and your partner are clear about what kind of work has to be done and the contract has been negotiated carefully, there is hardly any scope for delays or cost overruns. The partnerships between mobile startups and software development companies is fairly common. Many of the partnerships go beyond one project. The companies that take up the outsourced projects try their best to complete the project on time because they value their own reputation.

Myth #5. Outsourcing Stands For Cultural And Language Barriers

This myth gets automatically busted if you take into account the fact that English is now an universal language and cultural barriers have melted away under the scorching light of global TV and Internet. The companies that take outsourced projects are employing professionals who are well versed in the language and culture of the country from where they get their projects.

Myth #6. Outsourcing Can Steal Your Intellectual Property

There is an easy solution for this fear—have a watertight NDA with your  IT outsourcing partner. Once the NDA is in place, there is no reason for you to fear about any loss of your intellectual property.

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Myth #7. You Spend Less Time On Communication

Once you have outsourced the project, you should still keep in touch with the development company. You should keep tabs on how the project is progressing, or if there is any scope for further improvement in the project. Such coordination will ensure that the project outcome is better than your expectations.

Myth #8. You Don't Know What You'll Get

When you are clear about what kind of final product you need and the partner has understood the project, then there is hardly any scope for a mismatch in the final product. Before initiating the project, you should ask the development company to show you a rough template of what the final product will be like. This will ensure that there is more clarity about the work that the development company is expected to do and there are no last minute surprises.

Team Daffodil

Written by Team Daffodil

We equip smart companies with smarter solutions. Our all-round expertise in Web, Mobile and Cloud solutions has brought about a change in some of the top businesses, setting global milestones as we go.