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Myths are ubiquitous and sometimes their authenticity may not be vividly proven. While some myths have an iota of truth, some are mere misconceptions. Likewise, in outsourcing services, there are several unfounded myths. These misconceptions may stem from people with limited knowledge about the benefits of outsourcing practice. This article will serve to expose these misconceptions about outsourcing practice and help you better appreciate the benefits derivable therefrom. to give your business a paradigm shift.
According to Throgmorton.co.uk “All businesses will naturally incur a certain amount of overhead costs to meet statutory demands (for example legal, tax, HR, health & safety, payroll, and bookkeeping expenses), and this is one area where an outsourced solution is often cost-effective.”
Outsourcing delivers significant cost savings in comparison to the cost of in-house services as explained below:
All businesses will naturally incur a certain amount of overhead costs to meet statutory demands (for example legal, tax, HR, health & safety, payroll, and bookkeeping expenses), and this is one area where an outsourced solution is often cost-effective. Throgmorton.co.uk
This is an utter fallacy! In fact, over the years, the practice of outsourcing is seen more as a growth strategy, which indirectly strengthens the economy. By outsourcing non-core functions companies are able to focus on core activities, thereby increasing productivity. Companies are able to provide better goods and services which leads to consumer satisfaction, high ROIs and job creation. All these explicitly describes a healthy economy.
Outsourcing and offshoring are not exactly the same. Outsourcing is a business practice of engaging a third party to perform certain services or job functions, mostly in the country . However, offshoring or offshore outsourcing simply involves engaging a third party from another country to carry out certain functions or services on a contract basis.
This is far from the truth because outsourcing supports company structure and culture. It provides companies with several options to spread their tentacles, share risks, and achieve goals and objectives. At Phillips, we understand that organizations have different cultures and structures and we build these into our sourcing processes and induction/onboarding programs ensuring that staff that we deploy to our client organisations are best fit.. This distinct attribute has made us preferred partners over the years.
Although, outsourcing tends to attract big business players because they understand the importance and benefits of outsourcing, all organisations, irrespective of size, can infact use and enjoy the benefits of outsourcing. Infact, SMEs can leverage outsourcing services to proffer solutions to the start up challenges of growth, sustainability, brand identity, customer loyalty, mismanagement Are you an SME owner? Don’t hesitate to reach out to us.
One of the major concerns of companies is cybersecurity. Businesses face breach of privacy and data compromise. While it is understandable that this myth may have arisen due to experiences, it is not appropriate to make it generic. Outsourcing companies like Phillips understand the importance of cybersecurity and data protection because private information is being shared. We have trusted methodologies and the technology that protects client’s information and data. Integrity is our core value and we comply to policies with respect to data protections.
Contrary to this myth, outsourcing has contributed immensely to considerable rise in job creation. Outsourcing helps companies to cut costs, expand their capacities, and create job opportunities as a result.
Companies outsource to competent vendors because they want high-quality products and services. Due to up-to-date expertise, manpower and technology, outsourcing firms like Phillips Outsourcing have a proven track record of good quality deliverables. So, you can be sure to bank on us.
This is yet another misconception. The goal of outsourcing is to delegate non-core activities to a third party. These activities are not core-functions so they don’t have a significant control over the company. Since your company still retains control over the core activities, you entirely are in charge of your business.
This is a myth in which many businesses fall prey to. Creating in-house teams by recruiting people to handle functions is more expensive than outsourcing those functions. Take into consideration, the cost of recruitment, the cost of training, cost of payrolling, the risks involved whether or not these employees will be productive and deliver quality products. All these expenses can be cut and risk properly managed by outsourcing.
We hope this article has provided some clarification on some of the misconceptions you may have had about outsourcing. Talk to us today and let us guide you on the best outsourcing solution that best suits your needs. Send us a mail at email@example.com.
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