The Truths and Misconceptions of Outsourcing Services

In recent years, outsourcing has continued to rise in popularity for businesses across all industries all over the world. It involves hiring personnel from outsourced companies to perform specialist services that may have been handled in-house by the company’s own staff.

Often, US companies will look for service providers from overseas due to their cost-effectiveness without sacrificing work quality. One of the top service providers that many companies engage with is Philippine outsourcing companies—both for the ease in communication and quality of services offered!

Outsourcing has received both praise and criticism, and it has many benefits and disadvantages for consideration. While many misconceptions are circulating about outsourcing, it nevertheless continues to be an effective solution to many organizations’ needs while providing a source of livelihood for the staff hired to perform the services.

To clear out the air regarding it, here are some of the truths and misconceptions of outsourcing services.

Myth 1: Outsourcing Jobs Will Weaken the Economy

With so many jobs being given to people outside the country rather than to their own citizens, outsourcing might seem like a sure way for the economy to dip. Fortunately, many economists have observed that it actually achieves the exact opposite and strengthens the economic status of a country.

Outsourcing talent and services give companies a cost advantage and an opportunity to accelerate growth by having in-house talent focus on reaching goals to help the company meet its targets. This combination results in high efficiency and productivity, leading to business success! Such companies provide better-quality goods and services to a healthier market where they can be offered at lower prices.

Healthy markets encourage more employment and investments, and their long term existence can continue to stimulate the economy for many years to come. Through outsourcing, businesses can secure more tax revenues and offer even more employment opportunities to job seekers locally.

Myth 2: Outsourcing Causes Higher Unemployment Rates

This myth comes from the idea that jobs are lost when companies choose to do offshore outsourcing. However, data shows that this may actually improve unemployment rates rather than the fear that fewer jobs will be available on the market.

Unemployment rates remain low despite outsourcing because it allows companies to cut costs and then focus on expansion, which usually means creating more jobs. It’s also important to note that onshore outsourcing exists too, where companies outsource by hiring BPOs in the United States.

Myth 3: Outsourcing is an Unethical Practice

When a company decides to do call center outsourcing in the Philippines, many people in Western countries immediately associate it with job loss. The term ‘outsourcing’ then becomes a dirty word synonymous with job loss and unethical practices.

Because outsourcing is less expensive than hiring someone in-house, many people have grown concerned over the working conditions of outsourced employees, including the low pay that they receive. The assumption is that they’re certainly not being treated well given these working conditions!

Staff in the Philippines are actually paid quite well, especially compared to other working professionals in their immediate community—and even the country as a whole! Compared to other people in similar roles, outsourced workers tend to make anywhere between 100% to 200% more.

It’s also important to note that the cost of living is very different from that of the United States, so the U.S. dollar can go a long way to provide someone with a better salary. The Philippine government is also very pro-labor with regulation and policy, with the Department of Labor and Employment going through great lengths to protect their labor force.

Myth 4: In-house is Cheaper Than Outsourcing

Building a sales team for your company is essential depending on the nature of your business, but choosing to establish an internal workforce may increase your expenses drastically as a result. Contrary to popular belief, in-house sales teams will cost much more than outsourcing similar talent. Employee costs are some of the greatest contributors to company expenses, which is why it’s essential to consider which positions are best hired directly and which ones are just fine being outsourced!

Companies can find marketing solutions through the outsourcing of labor without having to compromise the quality for a relatively affordable price. Many outsourcing companies offer marketing services supported by experience, and hiring an outsourced sales force can also make operations more efficient with a pool of resources to come up with better solutions.

Myth 5: Outsourcing Sales Will Ruin Company Branding

While it may be true to the extent that businesses know their products and services best, having a sales force with a well-rounded knowledge base can help sustain the product on the market. Well-planned marketing campaigns can benefit from historical data that outsourcing companies have access to, which can ultimately help your company form better marketing solutions.

In-house marketing teams would need more time and resources to conduct the necessary research on competitors and customers, whereas outsourcing companies have that data readily available along with their own experts!

Outsourcing: Tools for Small Businesses

Now that some of the more common myths about outsourcing have been clarified, it’s worth discussing how it can also be used as an effective tool in small businesses.

BPO’s are in a good position to help startups create viable marketing plans that match their unique circumstances and capabilities as startups. They’re designed to provide services such as marketing, allowing entrepreneurs to run the business while BPOs do the work.

With the help of outsourcing, many young companies are able to firmly establish themselves, with outsourcing companies providing an accelerated avenue for learning and application. Experts, advisers, and consultants can help in process improvement and decision-making to empower the startup to stand on its own.

Many businesses can also make use of professional accountants from accounting firms to design their accounting systems. Setting up a system that is fraud-resistant is key to protecting a business’s assets, and creating firm internal control procedures as early as possible can protect a business’ finances from theft.

The Bottom Line

Outsourcing has turned into a major contributor to the growth and development of many companies worldwide. Despite the myths and misconceptions that have grown along with it, outsourcing undoubtedly has the strengths to make a good case for its importance!

Remembering that outsourcing is a choice rather than an inevitability will allow businesses to assess the extent of its benefits, especially as outsourcing companies continue innovating to offer even better services.

Choosing the best outsourcing business can provide your business with numerous advantages. It can accelerate growth, generate jobs, and cut down your processes and costs to operate more sustainably and profitably. Whether you’re hiring a Philippine virtual assistant to take on your smaller tasks or building your sales team, outsourcing is not just a good option; sometimes, it’s truly the best and most effective way to succeed!

Here at CrewBloom, we connect top professionals with remote sales and support roles. Whether you’re in need of customer support services from the Philippines or other roles, our disruptive outsourcing provides you with access to premium talent for your requirements. Contact us to hire a CrewBloomer today!

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