5 Common Myths About IT Outsourcing – Debunked!

As an IT outsourcing company, we interact daily with people from different countries from around the world. With over 10 years of experience in the industry, we have heard many misconceptions about it, and we find it important to debunk those to make sure people understand the value outsourcing can bring to a business. So, we prepared a list of 5 of the most common myths about IT outsourcing, and we will go through each one of them, debunk them, and offer examples to support our points.

Let's start our list with the first common myth!

Myth 1: “Outsourcing Means Lower Quality Work”

Most common myths come from bad experiences from collaborations that went wrong. The first misconception we want to discuss is that outsourcing results in lower-quality work. Yes, there is always a chance that something can go wrong, usually because of choosing the wrong software provider or lack of clear communication.

It's easy to debunk the idea that outsourcing means lower-quality work. Sometimes more than in-house teams, reputable outsourcing companies pay close attention to their customers' needs and expectations.

Most outsourcing companies are known for their meticulous quality assurance processes. With the help of project management tools, you, as a client can track the project's progress and communicate with your outsourcing team.

They invest in continuous learning and adhere to international quality standards while training in the latest tech and methodologies. The right outsourcing company will deliver high-quality work and results.

If you're considering outsourcing a software development project, you can ensure quality work by doing detailed research on companies and looking at their portfolios with past projects. Reviews and recommendations from past clients can also offer you insights into the team's communication style and collaboration, in addition to their work experience.

Let's move on to myth nr. 2!

Myth 2: "Outsourcing Is Only for Large Corporations"

Another common misconception about IT outsourcing is that it's a strategy only for large corporations with big budgets. In reality, outsourcing is useful for small businesses as well.

Think about it. Why couldn't small to medium-sized businesses outsource IT projects just like larger corporations? You might be thinking, that small companies or start-ups don't have the financial capabilities to do so, while, in reality, they can benefit from cost savings when they choose to outsource. So, why do companies outsource?

Outsourcing offers you a great deal of flexibility and scalability and helps in managing your team size according to your needs without the hassle of traditional hiring processes that require multiple steps.        
You have options to choose from when collaborating with an outsourcing team: you can opt for a project-based model, hire a dedicated team, or go with staff augmentation. Regardless of your company's size, you can find an engagement model that suits your needs best.

On another note, collaborating with an outsourcing company from a country with lower labor costs can help you save money while maintaining high-quality work.

Myth 3: "Outsourcing Leads to a Loss of Control"

You might think that when you hand over a project to an external team, you will lose control over it. If you ever find yourself worrying about this aspect, you should know that there are ways to maintain full control over the project at all times. And, it depends on you, just as it does on your outsourcing team, how transparent and collaborative the project will be.

If you prioritize being involved at every step, this is fine and you can definitely do that. Some companies prefer to be less involved, it all depends on preferences.

Luckily, in 2024, with remote work thriving, we have all the tools we need for live collaboration, from multiple communication channels to different project management systems like Jira, Trello, and Asana, so we can stay updated at every stage.

In your contract with the outsourcing team, you should outline all the important details about the project, including the scope, expectations, and responsibilities of both parties. This way, there is less chance for misunderstandings.

When done right, outsourcing can be a pleasant experience and the outsourcing team becomes like an extension of your in-house team, rather than a separate/external entity.

Myth 4: "Outsourcing Is Only About Cost-Cutting"

One of the first things that comes to people's minds when thinking about outsourcing is saving money. While in most cases, this is true, and we know how important saving money is for businesses in today's economy, outsourcing offers much more than just cost savings. But the benefits of IT outsourcing go beyond cost savings. 

For your company, outsourcing can also mean gaining access to specific expertise that you don't have available in-house. By outsourcing different projects and tasks, you free up time to focus on improving your strategies and other important business areas.

Let's say you have a retail company, for example. You decided to outsource your IT support, and now, you can use the freed-up time to focus on brainstorming and creating a new product. Your IT support is in good hands, and at the same time, you get to work on new products and strategies.

So, while reducing expenses is an awesome advantage outsourcing can offer, it is not the only one.

Myth 5: "Outsourcing Poses Too Many Security Risks"

Security risks exist in any type of business collaboration, not just outsourcing. It is a valid concern, though, so, security needs to be taken seriously.

Reputable outsourcing companies take strict steps to keep private information safe. These businesses care a lot about keeping your data safe. It's a good idea to ask potential outsourcing partners about the steps they take to keep private data safe during the first meetings or interviews.

One of the most reassuring things to look for is compliance with well-known international standards like ISO 27001 or GDPR. These certifications show that the company is dedicated to creating a secure environment and follows top industry practices and regulations.

Contracts and non-disclosure agreements (NDAs) help too. These agreements (NDAs) can outline your expectations and provide a legal framework for data security. This can offer extra security and peace of mind.

Remember, choosing a serious and reputable outsourcing company will reduce the chances of security issues in the future.

Tips on Choosing the Right Outsourcing Partner

These are the top five outsourcing software myths. Here are some recommendations for choosing the best outsourcing partner. 

Research: To get started, you should do detailed research on potential companies that offer the services you need. You can check out their website, case studies, and client testimonials, which will give you a picture of the company's working style, values, and clients. But don't just stop there—explore other independent platforms for reviews and feedback about the company to gain an unfiltered perspective on them. 

Prioritize Communication: You can learn a lot about a company's communication style from your first interactions with them. Communication should be a priority, as it can determine the success of the entire collaboration, so be sure not to overlook it. Does the company take long to respond? That's probably a red flag. Look for a company that is transparent, responsive, and overall matches your working style. 

Check The Outsourcing Team's Security Practices: The company you choose for your project should have strong rules in place to protect your data. If you want to know if they follow industry standards like ISO 27001 or GDPR, you should ask about their security certifications and processes. A good company will be happy to show you how they keep your data safe.

Test the Waters: Maybe you've already found a company you like and want to work on your software project with them. Before you give them the whole project, give them a smaller one, or a task, to see if they have the skills and experience to finish it.  

Look for Cultural Compatibility: This may not seem like a big deal but, working with a team that knows your business culture and shares your work values will make working together easier and more productive. So, when choosing an outsourcing partner, keep this aspect in mind.

Conclusion

No matter what size of business you have, outsourcing can help you! People may be hesitant to outsource IT projects because they think they will lose control or worry about security, among other myths. Once we clear up these, outsourcing can be a smart choice that leads to growth and new ideas.

With the right partner by your side, outsourcing can be a successful journey. Try to find companies that share your values, show good communication skills, and have a solid history in security and technical know-how. Start with research, keep the lines of communication open and clear, and think about a trial project to see how well you fit together.

When you tackle these common myths and take on outsourcing with a good plan, you can open up a whole new world of possibilities that help your business flourish and expand.