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10 Myths about Software and IT Outsourcing

We all heard about IT Out Sourcing for past few years. Many of us have some understanding of it; rests of us have some idea. There are many conflicting beliefs about IT Out Sourcing about floats in people’s mind. In this article I am addressing some of facts that will help people know out sourcing better.

Myth 1: IT Outsourcing Is Only For Big Business

Most of the times contracts for outsourcing are discussed which are of millions of dollar/pounds. So, people generally think it is only affordable for big businesses. But the reality is any business can benefit from outsourcing regardless of their size.

Small and Medium Sector businesses house can get guaranteed IT support service at a far cheaper rate than trying to resolve computer issues in-house. Larger businesses too can get similar kind of savings. They can save more by spending less than by hire one dedicated member of IT staff for the same work. Also a business can get customized services only for the time needed at affordable cost from efficient service provider and can save on fixed employee overhead.

Myth 2: Outsourcing Is Not Suitable For Start-Up Organization

It is a popular belief that only mature organizations can be benefited by IT outsourcing solutions. But the reality is outsourcing can actually provide small start-ups an expert professional team extension that will help it to increase their level of competence in a cost-effective manner.

With a competent outsourcing partner, small start-up companies can skip the headache of expensive and time consuming process of recruitment, selection and training of permanent employees. With expert team of outsourced professionals companies can complete projects in few days or weeks which otherwise take months for them and also live up to the stakeholders’ expectations.

Myth 3: Outsourcing a Job Means It Will Get Out Of Your Control

There is a common confusion between responsibility and control when it comes to outsourcing. Many organizations think that they have to surrender control of their IT to the outsourcing service provider. The truth is that although IT support provider can suggest strategies and improvements, the client retains overall decision-making control regarding how business uses and implements the computer services. In short, service providers support strategy, rather than define it.

Myth 4: Quality Is Lower In Offshore IT Operations

Some people claim that the quality of work from offshore IT service providers is poor with respect to work from competent in-house team. Truth is that some offshore IT providers invested handsome money in cutting edge IT development infrastructure and quality control. You will get very high quality IT solution from good outsourcing partner.

It is a fact that more than 60% of vendors with best-in-class IT certification and capabilities are in India. Also, a recent study reveals that the quality of codes and software programs are equivalent and sometimes better with respect to developed countries.

Myth 5: Outsourcing Costs More in the Long-Term

One of the popular beliefs that outsourcing a job is cost effective in the initial phase and cost increases rapidly in the long run and eventually becomes costlier than employing an in house staff. But the reality is even employing a single employee to control IT operations in your organization will cost tens of thousands of money each year in salary, employer Insurance contributions, plus a workplace pension and training. If you have a more complicated IT system, you will need more employee which will cause even greater expenditure. Using outsourced IT support services you get all the benefits of a complete team of IT experts without the associated employment costs.

Myth 6: Communication Can Be Difficult Because Of Poor Technical Infrastructure.

It is also believed that offshore IT solution providers lack modern edge communication infrastructure and it will be difficult to maintain proper communication with the IT service provider during project lifecycle. But a superior outsourcing company always ensures that the communication lines between them and their partners are always clear and open to make sure that the right person receives the necessary information. A high-quality outsourcing technical infrastructure generally comprises of email, chat services, videoconferencing equipment, direct telephone numbers, phone and VOIP connections, online screen sharing facility.

Myth 7: Offshore IT Specialists Lack Customer Business Perception

People sometimes think that as there are possible differences in corporate cultures and business functionality, offshore specialist cannot provide solution as per clients’ business need. Though it may sound reasonable but the truth is quite opposite.

Offshore IT specialist from good outsourcing providers are true professional and follow organizational culture of international standard. There are internal training sessions of the offshore IT specialist to accustom to the clients’ organizational culture. Also, there are interaction sessions like meeting, discussion etc. where personnel from both client and outsourcing service provider know the work process and work culture in of each other. This creates synergy, close relationships and a collaborative environment that ensures employees completely understand the business and the focus of their work.

Myth 8: Outsourcing Causes Security Problems and Risks Intellectual Property Rights

There are many people who will advocate that organizations’ data is best kept in their own hand. They say that outsourcing involves disclosing company’s sensitive data to the outsourcing providers who may not handle data in a safe and secure way.

Contrary to this belief most outsource provider spent lots of money and effort in developing secure environment of data handling for their clients. The core functionality of the system is providing data protection from unauthorized access and natural disasters. Some of the measures which outsourcing companies adopt are:

  • Restrict unauthorized access removable media in work place
  • CCTV checking for employees
  • Online activity monitoring and strong firewall implementation
  • Non-Disclosure agreement for employees with provision for strict penalties
  • Strong User Access management for client’s sensitive data
  • Use of Secured layer for all data communication between client and outsourcing providers

The security tools and techniques sometimes cost more than many mid-sized companies can afford on their own.

Also, client has the freedom to go with Intellectual Property agreement with outsourcing provider at the initial stage of the contract. With this agreement all the work produced during the jobs of the contract will be property of the client and they have their sole right.

Myth 9: Output Will Be Wrong If the Task Is Not Specified Down To the Smallest Detail

Leading outsourcing providers employ their expert project management team for clients’ project. It is true that specification is necessary to analyses the requirement of the job, but it does not mean that even the minute details of the work is to be specified separately.

The outsourcing providers do their detailed requirement analysis. In this phase they discuss with the clients’ personnel to access the requirement. The domain expert of the outsourcing service providers then prepare detailed technical and functional specification of the job so that client’s needs will be fulfilled. The work flow of the project will follow this specification with occasional interaction with the client for periodic discussion, acceptance testing and project progress analysis etc.

Myth 10: Time-Zone Differences Incorporate Problems in Smooth Business Operation

It is a fact that some issues regarding time-zones are present in offshore outsourcing model especially in communication. But, leading outsourcing companies use a good mix of synchronous and asynchronous communication channels to overcome this issue.

The important communications are done through synchronous communication channel like video conferencing, voice chat, telephone call, screen sharing etc.

On the other hand normal communication needs are served through asynchronous channels like email, offline messaging system etc.

It should also be noted that in outsourcing model both parties can agree ahead of time on the frequency and the means of communication and also on the people involved for a smoother and better work experience.

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