8 Tech Sales Outsourcing Myths To Leave Behind in 2024

International expansion is a complex process, especially when it comes to different cultural geographies, which is why partnering up with the right professionals is one key asset to take into consideration. During the past decade or so, a lot has changed in the way outsourcing services work. With the increased absorption of technology in emerging markets, a new generation of competitive service providers has emerged. 

These providers are generally competitively priced and have a lot of experience working with international markets, as well as national and regional expertise. The second one is pretty intuitive, and it comes as a natural development of their professional journeys, while international / global expertise is generally the result of having had to work with bigger companies or target international markets in order to stay relevant, as the digital services have become less dependent on local providers.  

So here are a few of the myths surrounding these professionals, as well as the reasons to leave them behind if you’re looking for a flexible partner to help you with your international expansion:

1. Outsourcing Diminishes Quality Control

A predominant myth is that outsourcing leads to a loss of quality control. However, with advancements in technology and communication tools, maintaining high standards across borders is more manageable than ever, especially in the context of the aforementioned experience with global service providers. 

Establishing clear guidelines, regular check-ins, and leveraging project management tools can ensure outsourced services meet your expectations. Many outsourcing firms specialize in their fields, offering superior quality and innovation compared to in-house teams constrained by resource limitations. This means that you can get a more senior team with access to better tools for a competitive price compared to building an extensive in-house department. 

2. It's Primarily a Cost-Cutting Measure

While outsourcing can lead to significant cost savings, viewing it merely as a budgetary maneuver underestimates its value. 

Outsourcing enables access to global talent, advanced technologies, and innovative business practices. It’s a strategic move to enhance capabilities, not just cut corners financially. For tech companies expanding internationally, outsourcing can be the key to tapping into local market expertise and technological advancements. 

What this means for your business is that outsourcing might be a solid idea outside of cost arguments as well, due to the highly trained professionals in most of the emerging markets.

3. Outsourcing Leads to Job Losses

The concern that outsourcing equates to job losses domestically is a sensitive issue. However, it opens up opportunities for businesses to reallocate resources towards core competencies and innovation. 

This strategic shift can lead to job creation in higher-value areas within the company, fostering growth and new opportunities. On top of this, you should have an in-house department, but it’s good to have the option of also having an external team of consultants for flexibility purposes. Plus, the more you focus on creating a growth mindset with your partners and collaborators, the more your business will be able to increase the department size in the long run without it affecting your immediate goals.

4. Only Large Corporations Benefit from Outsourcing

This myth couldn’t be further from the truth. Small and medium-sized enterprises (SMEs) stand to gain significantly from outsourcing by leveling the playing field. 

Outsourcing grants SMEs access to the same quality of services and expertise that large corporations enjoy, without the overhead of building extensive in-house teams. Operationally speaking, if you’re an SME, salary costs will be a large chunk of your monthly expenses, which can be easily negotiated with an outsourcing partner.

5. Outsourced Services Lack Flexibility

Some argue that outsourcing firms are too rigid, offering little to no customization. On the contrary, many service providers are highly adaptable, working closely with clients to tailor services to specific business needs. 

This flexibility is crucial for tech companies aiming to innovate and adapt quickly to changing market demands. Of course, you should be doing your due diligence and researching the best rates and results of your potential partners, but that’s just a regular part of the process. On a smaller scale, you’re already doing this when you’re holding interviews for new hires.

6. Communication Barriers and Cultural Differences Impede Success

While communication and cultural differences pose challenges, they are not insurmountable. Once again, being careful is important here. One key aspect to make sure of is that you get to know the team you’ll be working with before signing. Other than this, outsourcing partners often have experience working with international clients and can bridge cultural gaps effectively. But generally businesses can leverage this diversity as a strength, gaining insights into new markets and fostering a global company culture.

7. Outsourcing Compromises Data Security

Data security is a legitimate concern for any business, but outsourcing does not inherently increase risk. Reputable outsourcing firms adhere to strict security protocols and compliance standards. This being said, you should investigate the type of partnership you’re entering.

By choosing partners with robust security measures and transparent practices, businesses can ensure their data remains protected. 

8. Once You Outsource, You Lose Control Over That Aspect of Your Business

Outsourcing doesn’t mean relinquishing control. Through regular communication, setting clear objectives, and employing project management tools, businesses can maintain oversight while benefiting from the expertise of their outsourcing partners. Especially if you have an internal department that can oversee the outsourcing of this activity and you’re following a mutually agreed framework, there shouldn’t be any issues on this side. On the contrary, teams that you’ve been working with for a long time tend to get to know your business and be proactive. 

Only by understanding the realities of outsourcing can your company make informed decisions that align with their growth objectives and operational needs. As we move forward into 2024, leaving these misconceptions behind is essential for leveraging the full potential of service outsourcing.