5 Myths of IT Outsourcing

5 Myths of IT Outsourcing

Despite the popularity of IT Outsourcing, there are several misconceptions that surround its general principle of working. Though, we cannot cover all the myths that surround IT Outsourcing, we try to focus on the most common ones here:

Myth 1: IT Outsourcing hampers productivity

There is a general belief that when a client opts for IT Outsourcing, the overall productivity of the concern may go down because of several barriers in terms of culture, distance, communication and time that exist.

Fact 1: Productivity is increased when IT Outsourcing is opted for

Excellent English skills and superior technical knowledge possessed by the employees of IT Outsourcing companies ensure that the productivity sees an upsurge despite time and cultural barriers. Also, most companies offering IT Outsourcing work as per their client’s time zone thus ensuring uninterrupted IT activities. In most cases, an on site project manager is appointed by the IT Outsourcing vendor in order to carry out coordination amongst the on site client managers and offshore team members.

Myth 2: Global clients opt for IT Outsourcing to cut costs

The costs of a company sure see a reduction when offshoring of IT activities is done. This is the only reason for clients to opt for IT Outsourcing.

Fact 2: Simplifying the way IT activities are carried out

Often, clients look for technical experts to develop a technical product or application after the requirements are frozen. Recruiting in-house employees and training them is time-consuming and needs specialized attention that the business people cannot spare.

So, the clients offshore such development activities to the experts in the area of Information Technology,who help give their ideas a credible and feasible shape in form of a software product.

Myth 3: It’s about cheap labor

More often than not, people associate the term ‘cheap labor’ to IT Outsourcing.

Fact 3: Quality, Innovation and Specialized skill force

The foremost aim of IT Outsourcing is to find a modestly priced provider, who specializes in offering high-quality output, has predefined methodologies and shows innovation in the field of IT.Affordable labor is just a side benefit, not the only deciding factor.

Myth 4: IT Outsourcing can be done with everything

This is really not possible. However, some global clients and software companies try to make it happen.

Fact 4: Study, Analyze, Decide on IT Outsourcing areas

The software company needs to understand client requirements thoroughly and perform feasibility study. If the business needs cannot be covered by offshoring the IT activities, then there is no point in considering IT Outsourcing.

Myth 5: Job cuts, job cuts, job cuts!

IT Outsourcing is seen as the main culprit behind several natives going jobless. However there are several studies and researches show that it is not so.

Fact 5: Economic growth

It’s about gaining maximum output, with minimum input for the country’s economy when IT Outsourcing is done. Consequently a steady economic growth is seen leading to more employment opportunities for the natives.

Source: EzineArticles

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