Misconceptions About Outsourcing In Emerging Markets

Author: 
Rilind Elezaj

There are people who have made it their business to use misconceptions and unfounded myths to scare businesses from outsourcing in emerging markets. They will tell you how unhealthy and unaffordable outsourcing is, but they will never tell you how outsourcing can help you to expand your startup in China, among other emerging markets. The truth is that outsourcing in emerging markets is among the smartest business decision any company can make. It gives you access to sophisticated infrastructure, production resources, and experts that belong to a third party, and that you probably cannot afford to buy, maintain, or both.

According to reliable statistics, over 72 percent of businesses across the world and across industries outsource their IT solutions. Half of these outsource to emerging markets because of their affordability and top-notch quality. Almost half of all companies outsource their HR, customer service teams, and financial management services to third-party companies, with about 40 percent outsourcing to emerging markets. All these stats point to one thing: That the myths about outsourcing to emerging markets are mere rhetoric and misconceptions.

Misconceptions thrive in an environment in which they are least challenged. That is why we choose to challenge them in this post by explaining several of the main myths that you should never allow to bar you from outsourcing when and whenever you wish to.

1. In-house is more economically viable than outsourced services.

Well, hiring an in-house team to handle your IT, office work, deliveries, and SEO, among other services, will not cost you a dime. Outsourcing to the same services requires an initial fee so up to that point, in-house teams are more economically viable. But the rubber meets the road later on when you start making monthly payments, buying technology equipment, and training your personnel. When that time comes, you realize that apart from paying your monthly fee, outsourced services do not require any extra funding. In-house services, on the other hand, require regular refresher courses, occasional repairs, and hefty compensations. Besides, outsourcing means that you don’t suffer downtime because of employee absenteeism, missed opportunities because of inexperience on the part of your employees, and no unnecessary expenditure in terms of rented space.

2. Outsourcing is a preserve of big companies.

On the contrary, small and medium-sized companies need outsourced services more than their big brothers. Why so? Because it is very cheap to maintain outsourced services. A small business doesn’t have the finances to buy new tech equipment every time tech advancements come sweeping across the industry, and neither does it have the funds to maintain and repair the equipment. Besides, hiring employees could be a daunting task for a startup because in most cases, the founder doubles up as the CEO, director, CFO, and any other role you can think of. A one-man panel may not get the best talents that would take the company to the next stage. With outsourced services, you get services from the best in the industry, people with immense knowledge and experience, but you don’t go through the hustles of finding them.

3. Trusting a third party with your business is unwise.

No, it is not. It will never be. According to Outsource2EU, more than two-thirds of business owners who outsource services have reported great satisfaction levels with their outsourced partners. The dissatisfied one-third have just been unlucky to encounter quacks and rogue service providers, just like is the case with all other sectors. You can always avoid such providers by doing your due diligence before hiring a provider. Read online reviews, ask close friends or workmates about the company, and use word of mouth comments to know the caliber and stature of the company you wish to contract. A trustworthy provider will ensure that your data is safe from cybercriminals and other malicious parties.

4. Outsourced staff lacks the zeal and knowledge to represent a brand well.

If you outsource customer care services, for example, it is understandable to become a little skeptical about the outsourced staff’s ability to handle customer questions with the required zeal and understanding of the products or services. But that is not to mean that you cannot trust them to do a clean job. Outsourced service providers are professionals who invest their time and resources to understand everything about your company’s daily operations, goals, weaknesses, strengths, and short as well as long term aspirations. This is the knowledge that they use when serving the people you do business with.

Rilind Elezaj is an experienced digital marketing specialist at SEO for X. In his methodological approach, Rilind integrates web development and other digital marketing solutions to create hybrid strategies that bring the best results.