Like nearly all other industries and practices, IT outsourcing also has had its portion of myths . While these misconceptions haven’t been able to end the flow of outsourcing, they have inflicted some damage to small commercial enterprises that sought to gain from the numerous advantages of subcontracting information technology tasks. In this article, we will view some popular myths and will learn why they are misconceptions merely.
Firstly, people believe outsourcing is doing damage to the local economic system. One can’t deny the diminishing the jobs in the information technology industry, but to state that the gross effect on the economy is damaging won’t be appropriate. If subcontracting your IT projects allows you to trim costs and enjoy more earnings, doesn’t that mean more profit for the shareholders. Then, most of the tech products from fiber optic cables to internet telephony are made up by western states. So it’s rather evident that if IT subcontracting reduces jobs in one sector, it also brings profit to other sectors.
Moreover, some firms hold the misconception that outsourcing to offshore workforce is a shameful act. This, I think, is because of constant propaganda by some media that subcontracting damages economy and is unpatriotic to do. But it’s true that numerous international companies have subcontracted their IT tasks to India and some other Asian countries, as it also allows them to cut managerial burden and target core aims. In fact, the main doctrine behind a business enterprise is to increment earnings and to flourish. IT subcontracting allows US firms to benefit from talented folks living miles apart, so we actually employ some untapped brains that certainly contribute more innovation to the entire world.
Some think that subcontracting can result in high expenses after you count all the intangible costs linked with it. Yet, if you compare the hourly wages of employees in Asian nations like Indonesia, you will realize that there are huge saving potentials. Moreover, having a larger internal workforce means you acquire all the office supplies from chairs to UPS for all of them. So by reducing fixed expenses, subcontracting permits SMEs to control their variable expenditures. So subcontracting is not just for larger corporations and can significantly help smaller businesses looking to launch with low budget.
Finally, a couple misconceptions come up due to incompetent management by firms who go for outsourcing. A lot of us fail to follow best practices when subcontracting out IT tasks and later come up with baseless justifications. Many a times, we hear managers complaining that outsourced workers overlook deadlines. This is usually the result of inappropriate selection. There are lots of providers in our own country who are always late.
Then, several managers face communication problems while dealing with overseas workers. These problems usually arise when you choose outsourcing providers who grab more projects than they can manage. So employ dedicated workers who would work only for you.
Firstly, people believe outsourcing is doing damage to the local economic system. One can’t deny the diminishing the jobs in the information technology industry, but to state that the gross effect on the economy is damaging won’t be appropriate. If subcontracting your IT projects allows you to trim costs and enjoy more earnings, doesn’t that mean more profit for the shareholders. Then, most of the tech products from fiber optic cables to internet telephony are made up by western states. So it’s rather evident that if IT subcontracting reduces jobs in one sector, it also brings profit to other sectors.
Moreover, some firms hold the misconception that outsourcing to offshore workforce is a shameful act. This, I think, is because of constant propaganda by some media that subcontracting damages economy and is unpatriotic to do. But it’s true that numerous international companies have subcontracted their IT tasks to India and some other Asian countries, as it also allows them to cut managerial burden and target core aims. In fact, the main doctrine behind a business enterprise is to increment earnings and to flourish. IT subcontracting allows US firms to benefit from talented folks living miles apart, so we actually employ some untapped brains that certainly contribute more innovation to the entire world.
Some think that subcontracting can result in high expenses after you count all the intangible costs linked with it. Yet, if you compare the hourly wages of employees in Asian nations like Indonesia, you will realize that there are huge saving potentials. Moreover, having a larger internal workforce means you acquire all the office supplies from chairs to UPS for all of them. So by reducing fixed expenses, subcontracting permits SMEs to control their variable expenditures. So subcontracting is not just for larger corporations and can significantly help smaller businesses looking to launch with low budget.
Finally, a couple misconceptions come up due to incompetent management by firms who go for outsourcing. A lot of us fail to follow best practices when subcontracting out IT tasks and later come up with baseless justifications. Many a times, we hear managers complaining that outsourced workers overlook deadlines. This is usually the result of inappropriate selection. There are lots of providers in our own country who are always late.
Then, several managers face communication problems while dealing with overseas workers. These problems usually arise when you choose outsourcing providers who grab more projects than they can manage. So employ dedicated workers who would work only for you.