January 2022

There is a very popular quote of Anna Quindlen which says, “When you really want to say no, say no. Because you can not do everything – or at least not well”.

This, exactly, is the core idea behind outsourcing. A team of some people can not do everything. Every person has his own strengths and weaknesses and a good product can only be released if the strengths of many people are combined well.

This is the reason that a lot of companies around the globe tend to focus on outsourcing than relying on weak resources.  However, at the same time, there are many myths associated with outsourcing which makes it difficult for companies to outsource. The IT industry, however, remains one of the major players in outsourcing.

In this blog, we will look into some important global outsourcing stats and what are the reasons that companies opt for outsourcing. Moreover, to get an antithetical view, we will also demystify some popular myths associated with outsourcing.

Reasons for Outsourcing

As we have already discussed how outsourcing is getting traction, globally. Therefore, it is important to understand the reasons behind it. Because evidently there are some potential benefits associated with outsourcing, so let’s jump into it.

    • Flexibility: 40% of companies outsourcing believe that it imbues flexibility for them because companies don’t need the same level of staffing all the year.
    • Reduction in Costs: Reduction in labor and operational cost is one of the major reasons for relying on outsourcing. When companies outsource tasks to outsourcing agencies, they don’t need to hire in-house resources. It allows them to reduce costs as they don’t need to provide equipment or any additional resources.
    • Focus on Important Business Processes: Companies can focus on important internal core activities as they can outsource relatively less important tasks. For example, customer service is a very critical part of any business. However, it can distract the key members from focusing on other significant tasks. So, outsourcing customer service to outsourcing agencies can help businesses focus on other important things.
    • Benefit from Top Talent: With the help of outsourcing, companies can benefit from excellent talents around the world.
    • Brand Loyalty: Brand loyalty is yet another aspect of a business. Because it is the loyal customers of a brand that keeps it alive even in pandemic-like situations. Outsourcing customer support to a highly trained staff can potentially improve and increase brand loyalty.
    • Delegate Mundane and Difficult Functions: Outsourcing offers you a chance to liberate yourself from the errand of employing resources while downsizing your faculty. You can simply separate for capacities that are hard to oversee and control while obtaining benefits.

This is not all, but these are some very important reasons due to which companies are increasingly relying on outsourcing.

Now, let’s look into some myths associated with outsourcing.

Myths of Outsourcing

As we have already discussed the reasons for the increasing trend of outsourcing and its global stats, now is the time to jump into some popular myths. In many cases, these myths play a crucial role in preventing businesses from outsourcing their projects.

Busting Outsourcing Myths

Myth #1: Outsourcing Can Compromise Your Control on the Project

Reality: When companies outsource tasks, they make sure that these tasks do not have any criticalities associated with them. These responsibilities neither influence the upper management of the company nor provide control over certain aspects of the project/company. Instead, these outsourced tasks are non-value added. So, it is just a myth that outsourcing compromises the control of the project.

Myth #2: Outsourcing Can Only Reduce the Operational Costs

Reality: People believe that outsourcing can only help in reducing operational costs but this is not the only feather in its cap. While it reduces the operational costs, at the same time it also allows the businesses to focus on other important and core tasks.

Myth #3: Outsourcing is only available and accessible to big companies

Reality: Another myth of outsourcing is that it is only available to big businesses. There is no doubt that most of the BPOs prefer working with larges scale businesses. But BPOs can be very helpful for strategic advising and other consultancy services to ensure the continuous growth of the company.

Myth #4: It is Unethical

Reality: It is widely believed that outsourcing is unethical. Because people believe that outsourcing increases the unemployment rate and outsourced resources are also not paid well. But this is not true as the resources of the Philippines are paid exceptionally well and provide a very good culture to the workforce as well.

Myth #5: It is Not a Long-Term Solution

Reality: This myth is based on the assumption that outsourcing agencies offer only non-value-added services. However, this is not completely true because outsourcing agencies can also be hired for strategic advising, supply chain services, and so on.

Myth #6:  Different Time Zones can Possess Serious Challenges

Reality: It is widely believed that different time zones can possess serious challenges in cooperation and communication. But in reality, different time zones offer great help in business. Your flow of work does not stop due to varying time zones. For instance, people working in the US and the Middle East can ensure more than 16 hour service because of different time zones.

Myth #7: Outsourcing Contributes to Exacerbating Unemployment Rate

Reality: If outsourcing is contributing to the burgeoning unemployment rate, how come the unemployment rate is lower? Instead, it helps a business to expand. And when a business expands, more jobs are created at both the national and international levels.


In a nutshell, it can be concluded that outsourcing subsumes a lot of perks in it. In this article, we have thoroughly discussed a few popular myths and have debunked them. Outsourcing has become a very important aspect of tech companies. If you are looking for any services, don’t hesitate to contact us as we have exceptional resources available for your service. 


Fahad Ali, Author

Fahad is PM at ARFASOFTECH but has a knack for writing. He enjoys writing about the latest technologies and evolving trends. Most of his writings revolve around trending technologies and their integration into operations.

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