Debunking 5 Common Myths about Outsourcing Services

As familiar as most people are about outsourcing, many do not know what it is or have various misconceptions about it. Seeing that a wide range of the public may have already misjudged it because of what they’ve heard from others, sadly, these myths are what’s giving outsourcing a poor reputation.

If you wonder whether all those myths about outsourcing are accurate, you are in the right place. In this article, you’ll find out what outsourcing services mean and what it involves. We’ll also debunk the most common myths about it that you might have encountered so that you’ll be well-informed.

What Outsourcing Means

Investopedia defines outsourcing as “the business practice of hiring a third-party company or professional to do services or produce goods that traditionally were done in-house.” Additionally, they say this practice is usually done as a “cost-cutting measure.” However, is that all there is to it? Is outsourcing just a means to save money?
The truth is that outsourcing has been an integral element of business economics since its practice became popular in the 1990s. This plays an even bigger role now that many experienced freelancers are offering virtual assistant services and because most companies have shifted to a remote working setup, especially amid the changes happening worldwide.
While many companies decide to outsource to cut operational expenses, there are other business heads who do it because they want to focus on more crucial aspects of the business. When they don’t have to worry about less critical tasks, they can focus more on important aspects of growing their business.
The central role of business process outsourcing (BPO) is not to provide cheaper services but to provide talents who can offer skills that would take certain companies months or even years to master. Imagine that you need a team of 20 people to handle customer service. How long will it take to find the right candidates for the job? Even after finding them, how much time will you have to dedicate to training them to a level where you’ll be confident that they can represent your business?
This is where BPO companies can solve this problem for you. They have people who already have the skills to do the job so they can start taking care of your customers sooner. Which will you choose, then?
Indeed there are times when having an in-house team makes more sense, especially when they’re central roles that you need to oversee yourself. But for other non-essential functions, outsourcing may be a better and more practical solution! Outsourcing is not perfect, but it’s also not as bad as what other people make it to be.
Most myths surrounding outsourcing are so far-fetched and should not be the basis for your business decision. Here are five of the most common outsourcing myths that we will debunk:

Myth #1: Outsourcing Will Lead to Losing Control of the Company

When you hire third-party contractors, they only handle specific tasks for you. For example, if you outsource appointment setting to a virtual assistant, that particular task is the only job they’ll do for you—nothing more, nothing less. It’s also up to you what resources you give them access to.
So, no, you won’t lose control of your business. On the contrary, outsourcing will give you more time to focus on your business’s long-term goals, all without losing control.

Myth #2: Outsourcing Means Paying People with No Service or Product Knowledge

Some people may have drawn this conclusion from the instances when they had to speak to a call center agent, and they didn’t get their concerns addressed as expected. However, you cannot judge the whole industry based on a few negative experiences.
Outsourcing companies invest a lot in their employee’s training. They conduct regular language and product training to ensure that the workers representing their client’s brands are well-versed in their business. Yet, every third-party outsourcing agency’s quality of the service is not of the same level. They do have some variations, which is why business leaders should be careful in choosing the BPO company to hire.

Myth #3: Outsourcing Will Put Your Company’s Security and Privacy at Risk

You’ll encounter some articles talking about a privacy breach and how it’s expected when you are outsourcing. It’s easy to assume that BPO companies have access to the business’s data. While it’s true that companies have to disclose some financial information with their chosen outsourcing service, it’s wrong to assume that the BPO company will break the trust given by their client.
This is because an outsourcing company’s success is heavily dependent on its reputation as well. No other business will trust them if they break a previous client’s trust and commit a privacy breach in contract. For this reason, this is not something to be worried about as long as you choose a reputable BPO company with a positive track record.

Myth #4: Outsourcing Produces Low-Quality Outputs

This is yet another baseless misconception about outsourcing. The truth is the point of outsourcing certain services is to ensure that you maintain the quality and integrity of the output minus the high overhead cost of in-house staff.
An excellent example of this is when you outsource payroll management. With a team of professional accountants, they will pay employees on time, file taxes, and handle bookkeeping tasks correctly. If the cost of outsourcing these tasks is a fraction of the cost of having an in-house team, and you get the assurance of dependable service, then outsourcing will be your best option!

Myth #5: Outsourcing Is Only for Big Companies

Many outsourcing companies cater to more prominent clients, but that doesn’t mean there aren’t any reliable ones that offer quality service to small and medium-sized entities. Most SMEs outsource because of the benefits they can get – especially the savings they can enjoy.
Many BPO companies prefer small and medium-sized enterprises because they want to be a big part of their growth and become long-term providers. In fact, in a 2016 survey by Deloitte, 27% of companies that outsourced had less than five billion annual revenues. Moreover, 23% of businesses that outsourced earned 25 million in a year. What it tells us is that both big and small companies enjoy the perks of outsourcing services!


Outsourcing is far from perfect, and even BPO companies will tell you that there are still improvements that they need to work on. Yet, there’s no denying that many companies benefit from these services. Whether it’s for HR functions, marketing, PR, consulting, or customer service, outsourcing is a smart business decision to make!
The myths that surround outsourcing are just that – myths. And like with any other business and industry, you cannot and should not pass judgment on the entire industry because of a few isolated cases. This is why choosing the right one for your company is the key to your success in outsourcing.
CrewBloom offers reliable business outsourcing services to companies of all sizes. Whether you are a budding startup or an established corporation, we can provide you with highly trained sales and support talent to boost your business. Contact us today to find out the many ways we can help your company!

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