Outsourcing myths to overcome in building your business

Outsourcing Myths Smart Entrepreneurs Stopped Believing Years Ago

Outsourcing Myths Smart Entrepreneurs Stopped Believing Years Ago

People who are new to the world of business and who don’t fully understand the game yet often assume that they have to do everything themselves. They’ll often bring multiple functions in-house because then they have direct control over them and can provide the proper surveillance. 

But it turns out that there is an alternative. It’s called outsourcing. And it’s the secret sauce that turns many of the world’s best brands into success stories.

It’s amazing how little the average company actually does. When you go digging around in their core operations, you find that they regularly limit the scope of their work. 

There are good reasons for this too - one of them being the fact that they don’t want to spread their expertise too thinly. 

Unfortunately, many business leaders believe myths about outsourcing that aren’t true. Things have to change. 

Myth 1: Outsourcing Lowers Quality

Let’s say that you’re looking for official document translation services. You could either go to a third party to do it, or you could bring it in-house by hiring a full-time employee. 

On the face of it, you would think that the in-house employee would be the better option if you could afford it. But when you think about it, that’s not actually the case. Translators external to your company have to compete for your dollars in the marketplace. And that tends to ratchet up the quality. If they fail to do a good job, you can simply go to one of their rivals. You don’t have the same kind of leverage when you do things in-house. 

The same principle applies, of course, to marketing, virtual services and printing. All agencies in these areas are competing for a finite pool of money. And it’s in their interest to provide the best services that they can for the price. 

Myth 2: Outsourcing Isn’t Suitable For Small Companies

Outsourcing with your small business

On the contrary, outsourcing is probably the best option for the vast majority of small businesses. Often you don’t have time to fiddle around with all of the peripheral tasks to do with your business. You need somebody to take over the process for you. 

Myth 3: Outsourcing Is Just For Cost-Cutting

While it is true that outsourcing allows you to complete many tasks more cost-effectively, it is not necessarily a cost-cutting measure. In fact, it can quickly become a tool for improving the quality of your services. 

Companies will often use outsourcing as a stop-gap measure. Perhaps they don’t have the money to bring certain activities, like marketing, in-house. In which case, they’ll go to an agency and get them to fill the role until their business position improves. 

What they often discover, however, is that the outsourcing company can often do the job better than they can. No - the service is never perfect. But, for the money, it’s good enough. And it meets their needs better than anything that they could hope to achieve in house. 

Smart entrepreneurs no longer believe these myths and have adjusted their business models accordingly. 


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