Myths About Information Technology Outsourcing

Like almost all other industries and practices, IT subcontracting also has had its share of myths. While these misconceptions haven’t been able to stop the flow of subcontracting, they have done some damage to small commercial enterprises that wanted to benefit from the numerous benefits of outsourcing information technology tasks. Let’s see and expose some of the common misconceptions running in this sector.

First of all, people think subcontracting is doing damage to the local economy. One can’t deny the diminishing the jobs in the IT sector, but to say that the overall result on the economic system is damaging won’t be appropriate. If you can reduce your costs, won’t you be able to pass your stockholders more profits. Then, nearly all of the technology from fiber optic cables to internet telephony are manufactured by western nations. So it’s quite evident that if IT outsourcing reduces jobs in one sphere, it also brings in profit to other sectors.

Secondly, outsourcing now seems to be a stigma to some masses in the corporate sector. This is likely the influence of propaganda by individuals who are against outsourcing for their individual reasons. But it’s true that numerous multinational firms have outsourced their IT tasks to India and some other Asian nations, as it also permits them to cut management burden and target major aims. In fact, the fundamental doctrine behind a business is to increase earnings and to expand. By subcontracting, western companies gain from the talent of a foreign population, which isn’t very much different than hiring Indians residing inside our own nation.

Some think that outsourcing can result in high expenses after you look at all the intangible costs associated with it. A concise comparison of salaries in Asia and USA is enough to demonstrate that expenses do get reduced. Moreover, maintaining a larger in-house workforce means you acquire all the office equipments from chairs to UPS for all of them. This significantly reduces risks for small firms, and allows them to start with minimum investment. So outsourcing is not merely for bigger corporations and can greatly help smaller firms that want to to launch with minimal budget.

Lastly, a couple myths come up due to poor management by those who choose to outsource. Many of us do not abide by best practices when subcontracting out IT jobs and later come up with excuses. Many a times, we hear people complaining that service providers neglect deadlines. This is basically the outcome of inappropriate selection. You may also come across employees in your own country who won’t meet deadlines.

Then, many a people face communication issues while dealing with overseas workers. Above all, employing dedicated staff who don’t work simultaneously for other customers can solve a multitude of problems that we commonly come across.

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