In the last decade, the outsourcing phenomenon has gained acceptance and grown in popularity. The reason for this growth is clear. Outsourcing enables an organization to focus on core competency and critical activities and to pass on other business activities to experts and professionals who specialize in specific processes, and business functions.
In the realm of offshore technology outsourcing, an organization might decide to outsource software development, management and support, programming services, project management, business analysis, infrastructure management or any one of a number of other tasks. But, in many instances, an organization may discount or dismiss the value of outsourcing because they assume outsourcing is ineffective or that it may cause delays in projects or even cause the organization to lose its technology investment. They may fear the loss of control over projects or have concerns about protecting intellectual property or data security.
In this article we will discuss the five most common outsourcing myths. This clarification process may help your organization to better understand outsourcing opportunities, and to decide when and how to use outsourcing to accomplish goals and objectives.
The decision to outsource an activity does not mean that the organization defines that activity as unimportant. Rather, the outsourcing decision is based on the separation of tasks. The organization will begin by identifying tasks that must be completed by its own team versus tasks that can be outsourced. Tasks that contribute to or involve the core competencies of the organization are those that will be reserved for your team.
Tasks that are specialized, or outside the competency of the organization, can be outsourced. You may also choose to outsource tasks that can easily be performed by your team where these outsourced tasks will free your team to spend time on tasks more critical to the success of your organization. You may also choose to outsource tasks to leverage investment funds, using affordable outsourcing services to complete a project or provide support and investing the money you save on other critical projects or business needs.
To make an appropriate outsourcing decision it is important to separate fact from fiction. This process will help you to make an educated decision about outsourcing some or all of your IT tasks.
The five most common outsourcing myths:
1. Outsourcing is undependable and the vendor may not deliver results
Contrary to what some prospective clients believe, appropriate outsourcing of tasks, projects or technology support is a proven method of achievable goals in a timely, affordable fashion. Clients often believe that offshore outsource partners will be undependable. If a client does not directly employ the people working on a project, it may believe it cannot ensure that deliverables will meet expectations. But, proven offshore outsource providers are skilled at delivering on requirements in a timely fashion and will consistently meet budget needs.
Remember, these vendors are experienced at working with clients as an extension of the client team. They have developed proven processes and models to ensure project success across time zones and in all types of industries. Reputable offshore vendors work in cities, countries and locations that can guarantee a stable economic and political environment and adequate IT resources. This ensures affordable services and a dependable service offering. Proven offshore vendors have dependable data and network security that will ensure your information is protected and mitigate infrastructure downtime, so your organization can be confident of stable, dependable service. They can also supply flexible delivery models that will provide dependable services for those organizations that require onsite or hybrid delivery models.
2. My organization will lose control if we outsource IT tasks
A reputable outsource partner will ensure that the client retains control over critical project decisions and that the client is informed of project progress, issues that require attention and upcoming deliverables. The client will have the option to set guidelines for how much vendor interaction is expected and the types of reporting and communication it requires at various stages of the project.
3. Outsourcing is more expensive than staffing IT tasks with internal team members
Working with a proven offshore outsourcing partner ensures an ideal mix of affordable services and the skills, processes and delivery models required by global clients. Choosing an appropriate offshore partner working in a dependable offshore location allows the client to comply with budgetary requirements and, at the same time, staff the project with experienced resources.
4.Offshore vendor teams are never as dedicated or responsive as internal team members
Working with a proven offshore outsourcing partner ensures an ideal mix of affordable services and the skills, processes and delivery models required by global clients. Choosing an appropriate offshore partner working in a dependable offshore location allows the client to comply with budgetary requirements and, at the same time, staff the project with experienced resources.
Your outsource partner will also focus on soft interactive skills, leadership skills and the potential of its team members to grow and adapt. Offshore team members will work as an extension of your team with the same enthusiasm and dedication of your internal technology and business team members.
5. Offshore outsourcing has a negative impact on my job, my company and my country
Organizations often struggle to justify outsourcing projects. While the affordability and flexibility of these services may be tempting, the organization often believes that employing offshore services may result in job loss and send important investment dollars offshore.
At its inception the outsourcing concept seemed to warrant caution. With the passage of time and the advent of global business relationships, outsourcing has become a successful strategy for many companies. Employees of your organization can be more focused on critical tasks and core competencies. By focusing on these core competencies, your employees can learn the business more quickly and move up in the organization to add more value.
Outsource partners can add to the competitive advantage of your company and leverage critical financial investments and provide better ROI, allowing you to pay for other important projects without cost overruns. As local governments adjust trade and service laws and tax structures, your organization can more easily implement a global business structure that will provide flexible, affordable services without a negative impact on the local job market or on the economy. Long-term studies on the outsourcing phenomenon illustrate the proven results and the benefit to local and global economies.
As you consider your technology project or support needs, you should seriously consider the offshore outsourcing solution. In our discussion of the five common myths of outsourcing, you may have noticed our focus on reputable, dependable offshore service providers. Outsourcing projects to an offshore provider can be a very rewarding experience for your organization. However, as with any other project your organization may consider, we encourage you to plan and execute your project using the best, most experienced resources available. In this way, you will ensure a successful project and a positive outcome.
In the realm of offshore technology outsourcing, an organization might decide to outsource software development, management and support, programming services, project management, business analysis, infrastructure management or any one of a number of other tasks. But, in many instances, an organization may discount or dismiss the value of outsourcing because they assume outsourcing is ineffective or that it may cause delays in projects or even cause the organization to lose its technology investment. They may fear the loss of control over projects or have concerns about protecting intellectual property or data security.
In this article we will discuss the five most common outsourcing myths. This clarification process may help your organization to better understand outsourcing opportunities, and to decide when and how to use outsourcing to accomplish goals and objectives.
The decision to outsource an activity does not mean that the organization defines that activity as unimportant. Rather, the outsourcing decision is based on the separation of tasks. The organization will begin by identifying tasks that must be completed by its own team versus tasks that can be outsourced. Tasks that contribute to or involve the core competencies of the organization are those that will be reserved for your team.
Tasks that are specialized, or outside the competency of the organization, can be outsourced. You may also choose to outsource tasks that can easily be performed by your team where these outsourced tasks will free your team to spend time on tasks more critical to the success of your organization. You may also choose to outsource tasks to leverage investment funds, using affordable outsourcing services to complete a project or provide support and investing the money you save on other critical projects or business needs.
To make an appropriate outsourcing decision it is important to separate fact from fiction. This process will help you to make an educated decision about outsourcing some or all of your IT tasks.
The five most common outsourcing myths:
1. Outsourcing is undependable and the vendor may not deliver results
Contrary to what some prospective clients believe, appropriate outsourcing of tasks, projects or technology support is a proven method of achievable goals in a timely, affordable fashion. Clients often believe that offshore outsource partners will be undependable. If a client does not directly employ the people working on a project, it may believe it cannot ensure that deliverables will meet expectations. But, proven offshore outsource providers are skilled at delivering on requirements in a timely fashion and will consistently meet budget needs.
Remember, these vendors are experienced at working with clients as an extension of the client team. They have developed proven processes and models to ensure project success across time zones and in all types of industries. Reputable offshore vendors work in cities, countries and locations that can guarantee a stable economic and political environment and adequate IT resources. This ensures affordable services and a dependable service offering. Proven offshore vendors have dependable data and network security that will ensure your information is protected and mitigate infrastructure downtime, so your organization can be confident of stable, dependable service. They can also supply flexible delivery models that will provide dependable services for those organizations that require onsite or hybrid delivery models.
2. My organization will lose control if we outsource IT tasks
A reputable outsource partner will ensure that the client retains control over critical project decisions and that the client is informed of project progress, issues that require attention and upcoming deliverables. The client will have the option to set guidelines for how much vendor interaction is expected and the types of reporting and communication it requires at various stages of the project.
3. Outsourcing is more expensive than staffing IT tasks with internal team members
Working with a proven offshore outsourcing partner ensures an ideal mix of affordable services and the skills, processes and delivery models required by global clients. Choosing an appropriate offshore partner working in a dependable offshore location allows the client to comply with budgetary requirements and, at the same time, staff the project with experienced resources.
4.Offshore vendor teams are never as dedicated or responsive as internal team members
Working with a proven offshore outsourcing partner ensures an ideal mix of affordable services and the skills, processes and delivery models required by global clients. Choosing an appropriate offshore partner working in a dependable offshore location allows the client to comply with budgetary requirements and, at the same time, staff the project with experienced resources.
Your outsource partner will also focus on soft interactive skills, leadership skills and the potential of its team members to grow and adapt. Offshore team members will work as an extension of your team with the same enthusiasm and dedication of your internal technology and business team members.
5. Offshore outsourcing has a negative impact on my job, my company and my country
Organizations often struggle to justify outsourcing projects. While the affordability and flexibility of these services may be tempting, the organization often believes that employing offshore services may result in job loss and send important investment dollars offshore.
At its inception the outsourcing concept seemed to warrant caution. With the passage of time and the advent of global business relationships, outsourcing has become a successful strategy for many companies. Employees of your organization can be more focused on critical tasks and core competencies. By focusing on these core competencies, your employees can learn the business more quickly and move up in the organization to add more value.
Outsource partners can add to the competitive advantage of your company and leverage critical financial investments and provide better ROI, allowing you to pay for other important projects without cost overruns. As local governments adjust trade and service laws and tax structures, your organization can more easily implement a global business structure that will provide flexible, affordable services without a negative impact on the local job market or on the economy. Long-term studies on the outsourcing phenomenon illustrate the proven results and the benefit to local and global economies.
As you consider your technology project or support needs, you should seriously consider the offshore outsourcing solution. In our discussion of the five common myths of outsourcing, you may have noticed our focus on reputable, dependable offshore service providers. Outsourcing projects to an offshore provider can be a very rewarding experience for your organization. However, as with any other project your organization may consider, we encourage you to plan and execute your project using the best, most experienced resources available. In this way, you will ensure a successful project and a positive outcome.