14 Common Misconceptions about Outsourcing

Outsourcing is more common nowadays as most businesses and fast-growing startups seek access to quality services. It helps businesses cut down on routine costs such as office space, Transportation, Electricity, Internet, Food. Also it enabled them to access quality outputs and become more efficient. However, there are many misconceptions attached to hiring online. In this article, you’ll get to learn about the common misconceptions people have towards hiring or working as a freelancer. 

1. Small businesses cannot afford to outsource

Most people think that hiring freelancers is expensive for small businesses. Also they think since the business is small it always require traditional in-house staff to help grow the business as opposed to hiring online or outsourcing staff who are merely completing your assigned tasks and do not have a bond the your organization.  However, companies now have packages for them, making up the highest number of their clients.

2. Outsourcing can expose the company data to security breaches

Most companies hiring work-from-home professionals know the value of trust and integrity to keep a good reputation. Also nowadays there are many software tools and work platforms which take care of security breaches, which imposed serious consequences on workers that  could make or break their Freelancing careers.

3. Company culture will suffer

It is a fact that motivated staff will produce better outputs in a company. Many believe that freelance workers will disrupt the team culture in a company. Even when it is a work-from-home job, the management will take more care of their permanent staff.

Also regular outsourcing or engaging freelancers could bring in fresh insights into company culture. This could even help spot any mundane or lethargic cultural issues in the organization which internal staff may have not spotted before.

4. Business process outsourcing (BPO) is expensive

On the contrary, BPOs ensure that you cut down on costs such as training, advertising for new positions, and improving a company’s productivity. Also companies offering BPO services work on multiple clients in parallel which enables them to achieve economies of scale which in turn enable them to provide better prices to each of their clients, in contrast to internal teams where no economies of scale exists.

5. Offshoring is not the same as freelancing

When hiring BPOs, you only give them authority to manage a part of the business to help you save on costs and concentrate on your core expertise. The pricing available will determine the location of where to outsource. Technically both offshoring and freelancing means assigning part of your internal tasks to outside workers. Offshoring mostly involves handing over a part of your business operation to an outside company which is generally long term whereas Freelancing is mostly task oriented where you assign an outsider to complete a specific set of tasks on your behalf.

6. Outsourcing is the same as buying a commodity

Hiring online staff for a company entails getting quality work and not engaging the cheapest service provider like you do when buying regular commodities. Gigs or predefined services with specific price points could make Gig economy similar to a commodities market but there are a lot of customizations and personalizing to do before a Gig is completed which clearly differentiates it from standard commodities markets.

7. Maintaining full-time staff is cheaper

Working with permanent employees is more expensive because of the costs of maintaining them. On the contrary, hiring work from home staff is cheaper and ensures fast completion of projects.

8. Freelance workers ruin a company’s brand

Contrary to this misconception, outsourcing helps a company as most firms use all their resources to solve your challenges; this includes learning about your products and ethics. Also outsourced staff is more motivated than internal staff and they always strive to build a long-term relationship with your organization. Ruining your brand is the last thing they would do.

9. Hiring freelancers reduces costs

Hiring from freelance websites is a significant factor in cutting costs. BPOs will help a company focus on its primary expertise, helping to improve the quality of its work.

10. Hiring freelance firms produce sub-standard work.

By choosing a firm with solid online work experience, you can be assured of getting the best solutions. You also get to minimize the risks of getting low-quality services.

11. Freelancers do not affect a company’s growth 

Getting better solutions for your business or company will accelerate its growth. Hiring an online marketing specialist could mean more sales for your product, causing more revenue generation. Also you can always gain access to the latest technologies and techniques which help you stake abreast in your industry.

12. Through outsourcing, you lose control of your company

BPOs cannot negate from their agreements and control decision-making in an organization. You may monitor their services and ensure that you get the best results without any friction.

13. It leads to more unemployment

There is a growth of a company when they hire freelancers due to costs reduction. There is an increase in employment opportunities as the company expands.

14. Hiring online-only offer short-term solutions

Long-term working relationships ensure firms work on solutions that will help businesses expand their portfolio, as they will incorporate their goals and visions.

Conclusion

Freelancers enable businesses, companies, and fast-growing startups to get the best solutions for their success. The new trend is changing companies globally each day. Consider reviewing the misconceptions discussed in this article and the actual truth if you are hesitant to outsource for your business.