Business Development 3 minutes read

4 Outsourcing Myths – The Truth Behind Them

Many know about outsourcing, but many are, too, misinformed about it. People judged outsourcing based on the myths we are going to talk about. Misconceptions about this topic confuse business owners and make them question the benefits of working with remote vendors.

Here are the four most common misconceptions about outsourcing, and the truth behind them:

Myth 1 - Only Enterprise-level companies outsource

When this type of service was just beginning to ramp up in the early 90s, it is true that early models weren't particularly accessible for entrepreneurs.

Thanks in part to the explosive growth of tech startups with in-house team sizes in the double digits, smart providers saw that opening the outsourcing model so that businesses that have not yet made the Fortune 500 list was an opportunity to be a part of something exciting.

Although outsourcing companies are more attracted to bigger clients, they are not closing their doors to small businesses. Because of the cost savings the outsourcing industry chooses no size.

The truth is that smaller and midsize businesses are increasingly outsourcing, especially when it is time to scale.

Myth 2 - Outsourcing will compromise your company’s privacy and security

In business relationships, trust is the key to a successful and long-lasting relationship. If the outsourced function involves sharing proprietary company data or knowledge ( product drawings, formulas, etc.), this must be taken into account.

Evaluate the company carefully to make sure the data is protected and the contract has a penalty clause if an incident occurs.

Outsourcing vendors do their best for ensuring full security of their clients’ data. If not, they would lose the trust of their clients and would, most certainly, damage their reputation in the market.

Myth 3 - It reduces your existing workforce

Outsourcing some operations can stop the churn, control costs, and create a better quality of life for the team you've hired. Adding a remote component to an all-star team definitely doesn't have to be about job cuts.

In fact, when money can be reinvested into core competencies, many companies grow, creating even more opportunities.

For example, the company can outsource its administrative tasks, marketing, and customer support to focus on driving more sales, developing services, and improving strategies. After, they can still hire new employees to join their in-house staff.

Myth 4 - You can lose control over your project

This is a common one, it that prevents businesses from outsourcing their projects from obvious reasons. Companies would fear that outsourcing to a external entity will result in losing control over the project.

In reality, this is not the case. Service providers fully involve the businesses to the extent they want. They keep them fully updated on the progress of the project and provide them comprehensive reports. Communication and collaboration tools help businesses to interact and exercise full control over the project.


Outsourcing has been the key to success for many companies. But the myths around it have scared some businesses from adopting it. This article has, hopefully, busted some outsourcing myths to help businesses to use outsourcing and derive maximum benefits from it.

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