Debunking Eight Common Outsourcing Myths
Janis Narvas and Ednalyn Ortega • August 2, 2023

Outsourcing — the mere mention of this word can ignite a host of mixed emotions, from exhilaration at the potential cost savings to apprehension regarding quality control. The public discourse around outsourcing is often filled with misconceptions and myths. 


In this article, we aim to debunk eight of these commonly held misconceptions, shedding light on the true potential of outsourcing.


Myth 1: Outsourcing leads to poor quality work


The first and most pervasive myth about outsourcing is that it invariably results in subpar work quality. This notion arises from a misunderstanding that outsourcing necessarily means compromising on quality.


While it is possible to encounter some poor service providers, this is not exclusive to outsourcing. The key to ensuring high-quality outcomes is careful selection and due diligence when choosing an outsourcing partner


While it’s easy to find outsourcing companies online, not everyone can be a trusted partner. Not everyone will be able to understand your requirements and deliver the level of service you need. So, make sure to look into the skills, knowledge, and qualifications of the team members.


Reality: You can find a reliable outsourcing partner by conducting thorough research, examining the provider's reputation, reviewing their past performance, and assessing their expertise.

 

At Remotely Philippines, we hire dedicated professionals who embody accuracy, integrity, and a passion for excellence. Our rigorous hiring process, continuous learning and development efforts, and quality control mechanisms help us ensure consistent and high-quality outputs.


Myth 2: Outsourcing takes jobs away from local markets


The myth that outsourcing takes away jobs from local markets is another widespread belief. The idea here is that outsourcing leads to unemployment in the country where the parent company is based.


Reality: Outsourcing does not diminish local job opportunities. Instead, it allows companies to focus on core competencies, opening up opportunities for more specialized local jobs. In a globally interconnected world, outsourcing can actually contribute to overall economic growth.


Myth 3: Outsourcing means dealing with language barrier


Another myth that raises concerns about outsourcing is the presumed language barrier. It's often assumed that outsourced workers may not be proficient in English, leading to communication breakdowns.


Reality: Language is no barrier in a company like Remotely Philippines, which has a multilingual team with a strong command of English. This helps us communicate effortlessly between cross-cultural teams.


Myth 4: Outsourcing is only about cutting costs


Many believe that outsourcing is purely a cost-saving strategy. While it's true that outsourcing can help reduce costs, this is far from the truth.


Reality: Outsourcing provides companies access to specialized expertise, improves scalability, enhances efficiency, and allows companies to concentrate on their core business functions. 

 

Outsourcing is also about efficiency. When you outsource with Remotely Philippines, you can save about 40% to 50% in overhead costs. However, more than being a cost-cutting solution, we are a solutions provider: we give our clients access to top-tier accounting professionals who will add value to their organization.

We've gone beyond just being a cheaper alternative. With access to a wide network of young, highly skilled Filipino professionals, we’ve been able to support our clients with world-class accounting service at par with bigger firms. 


Myth 5: Outsourcing means losing control over operations


The fear of losing control over operations is another outsourcing myth. Business owners often worry that they might lose their grip on projects outsourced to external teams. 


While it’s true that when you outsource certain functions or tasks to external providers, you are entrusting them with a certain degree of responsibility, it doesn’t mean that you’ll lose control of your operations. 


In fact, outsourcing can allow you to focus on core business activities and strategic decision-making while leveraging the expertise and specialized knowledge of external providers.


To maintain control, it’s important that you:

  • establish clear expectations and set quality benchmarks
  • communicate and be a part of the process, and 
  • find the right outsourcing partner whose values align with yours.


Reality: With the right outsourcing partner, like Remotely Philippines, you get to enjoy complete transparency and control over your projects. Detailed reporting, regular communication, and collaborative tools ensure you stay in command at all times.


Myth 6: Outsourcing is only ideal for large enterprises


While larger companies may have more resources to engage in outsourcing, SMEs can also benefit from it. In fact, outsourcing can be particularly beneficial for SMEs, as it allows them to access professional services without incurring substantial overhead costs.

 

Reality: There are outsourcing options available for businesses of all sizes. Smaller companies can leverage outsourcing for functions such as accounting, IT support, customer service, sales, or marketing, among others. 


Some outsourcing providers cater specifically to the needs of SMEs, offering cost-effective solutions that help them remain competitive and focus on their core competencies.


Myth 7: Outsourcing might compromise your company’s privacy and security


Another commonly held belief is that outsourcing could be a privacy and security risk. Nothing can be further from the truth.


Reality: Of course, not all outsourcing firms are created equal. So when selecting an outsourcing partner, you have to conduct due diligence and assess your provider's security protocols, data protection measures, and compliance with relevant regulations.

 

Myth 8: You should only trust large outsourcing companies


When it comes to outsourcing, the size of the company should not be the sole determinant of trustworthiness. While it’s true that larger outsourcing companies may have established reputations, smaller firms can also offer exceptional services and meet your specific requirements.

 

Reality: While large outsourcing companies may have extensive experience, there’s the possibility that they’ll treat SMEs as just another client in their portfolio. They might offer standardized solutions that don’t fully address your specific needs, or worse, you might receive less attention compared to their larger clients.

 

Since they have many clients, large companies typically rely on restrictive Service Level Agreements (SLAs) that limit their services to contractual tasks. This is done to manage their workload. However, it can lead to hidden costs if functions fall outside the agreed scope.

 

Smaller outsourcing companies, on the other hand, are more likely to provide dedicated teams that prioritize your business and give it the attention and level of commitment it deserves. 

 

At Remotely Philippines, we treat our clients’ companies like our own. We value building long-term partnerships, so we take extra care to understand and meet each of our client’s specific needs.

 

We know that business is personal, so we make it our personal business to make sure that your requirements – whether it’s accounting, assurance, marketing, IT, or customer service – are well taken care of.     



Time to set the record straight


It's time to move beyond the myths and recognize the tangible benefits outsourcing can provide.


Outsourcing, when done right, can lead to increased efficiency, access to global talent, and substantial cost savings. It's not about replacing your local team; it's about enhancing your capabilities and reaching new heights.


Are you ready to explore the power of outsourcing? Contact Remotely Philippines today, and let us debunk these myths together. We are here to be your outsourcing partner to success.


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