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3 Regular Misconceptions about Outsourcing, Which Should Be Tackled

3 Regular Misconceptions about Outsourcing, Which Should Be Tackled

Jan 8th, 2018

Over the decades, outsourcing has fast gained more support and there have been changes in how it’s being dealt with. Many businesses now consider outsourcing non-core competencies, a norm, so that they can focus more on increasing profits and gaining market position.

However, there have also been instances, where a business has been disappointed because their huge beliefs on smooth operations and increased efficiency were not achieved as expected. This is why you need to be aware of all the myths concerning outsourcing and keep all impractical assumptions away.

Let’s take a look at some of the myths related to Outsourcing and how they are being addressed:

  • Outsourcing one of your non- core competency will ensure smooth and efficiently run business operations: Businesses could be considering cut down of expenses, enhanced efficient services as well as the capability to increase or decrease outputs as dependent on the success of outsourcing a project. Even if it is a very valid reason to outsource a project, one should not really expect to gain all these benefits by just outsourcing one of the non-core competency projects.

    For example, those looking to streamline their operations may outsource more than one service or projects, which could be the cause to incur additional expenses, thus being detrimental to the objective of cutting costs. However, outsourcing the main non-core competency based on your objective should be beneficial to the business.

  • Outsourcing partners are more liable to fail than in-house staff: One of the most common myths about outsourcing is that the service provider and the business are equally responsible for the data and that larger blame should fall on the shoulders of the outsourcing partner, in case of any failure or risk rather than the in-house employee, in such a scenario.

    So, without beating around the bush on strong or complex contracts, so that one can find a scapegoat in case of any failure, best option would be to identify the cause for potential failures. It would be best if you could jointly consider, the acceptable rate of data errors and how best to manage it. Spend time to acknowledge and rectify issues, if any.

  • Strong contract is a must for Outsourcing: It has been seen that many businesses try to come up with robust and complex contracts, which can protect their interest in case of any failure. However, one should never forget that it near impossible to take into consideration all the exigencies, and insisting on adding certain clauses could be detrimental to a smooth relationship between a service provider and the company.

    At the same time, one should also not enter into a partnership without at least some contract, as it helps to make the goals and expectations are clear to both sides. A proper contract will make clear to both the parties their expectations and responsibilities, while also allowing leeway for modifications at later stages, if required.


One can thus assume that Outsourcing is a very viable strategy for all types of businesses, medium, small or large, who are aiming to leverage their expectations from smoothly run operations, both core and non-core. You should also take into consideration, while outsourcing a service that you need to be able to identify all your specific business requirements that can cater to your goals.