Misconceptions about outsourcing in Australia

Outsourcing has grown in popularity, resulting in a wide range of outsourcing agreements, from out-tasking and managed services to business process outsourcing and transformational outsourcing. In truth, outsourcing is an umbrella phrase that encompasses a variety of external sourcing possibilities. The current study is focused on understanding these possibilities, their distinguishing characteristics and how they assist in accomplishing various business objectives. This article presents a framework for clearing misconceptions regarding outsourcing and understanding its dynamics through a thorough synthesis of current evidence.

Offshore hiring has been around for more than thirty years, is frequently employed by large organisations and is expected to be valued at more than $200 billion by 2023. Moreover, outsourcing today may offer several benefits, including lower labour costs. It’s also becoming more comparable to ordinary local work than anything else; the only difference is that employees are based in a foreign nation.

However, in order to identify the benefits of outsourcing, it is necessary to first dispel some of the most popular myths:

Myth #1: Outsourcing causes you to lose control of your firm.

Companies, large and small, delegate certain business duties to third-party service providers – this is how outsourcing works. A firm, for example, may choose to outsource accountants for payroll or accounts receivables. When a company outsources accounting, the personnel only work on the particular outsourced activities – nothing more and nothing less.

They are not granted substantial authority over topics other than the designated job. The main emphasis here is no relevance. There are two questions that must be addressed.

Do they have substantial influence over specific elements of the business?

Do they have tremendous power over senior management?

If they had substantial control and influence, they might not be BPOs at all. Companies engage BPOs to decrease the quantity of non-value-added workload. Non-value-added operations are those that do not raise or improve the quality of a company’s products or services.

Myth #2: Outsourcing produces lower-quality work.

It is undeniable that outsourcing can help you save costs. However, if businesses solely consider cost when selecting a supplier and consistently choose the cheapest alternative, the conclusion is obvious: they will receive low-quality services.

When companies contemplate outsourcing, one of the most essential aspects is “quality.” When an outsourcing company offers low-cost services, it is typically because their employees are not fully qualified to complete the task. Firms that work with such vendors must either train their employees from the ground up or have their in-house team spend more time assessing the job. This is all a waste of time and money.

However, before engaging into an outsourcing arrangement, companies must do their due diligence to ensure that the supplier’s competence level matches the output required. Years in operation, number of workers, testimonies and accreditations are all important factors to consider.

Myth #3: Outsourcing is limited to large corporations

Cost (70%), flexibility (40%), speed to market (20%), access to tools and processes (15%), and agility (15%) are the main reasons why businesses are choosing outsourcing solutions. These goals are shared by all enterprises, regardless of size. The COVID-19 epidemic and lockdown damaged many firms’ procedures, and small and medium-sized enterprises (SMEs) suffered the most. Cooperation with outsourcing partners appears to be even more viable for SMEs in this scenario. The number of adopters rises as more business owners recognize the benefits of outsourcing. For the time being, one-third of small businesses (37%) rely on outsourcing to boost operational efficiency. Employers and workers have become accustomed to distant operations, thus outsourcing provides an infinite talent pool for a wide range of services, from human resources to accounting to marketing to software development. By the end of 2023, the proportion of SME owners seeking outside contractors is expected to exceed 50%.

Myth #4: Outsourcing jeopardises your company's privacy and security.

There is a misconception that BPOs may deteriorate a company’s genuine image. Most businesses believe that outsourcing violates their privacy because of this fear. Trust is essential in business partnerships for them to be effective and long-lasting. BPOs function by gaining their clients’ confidence, which may be gained via honesty and integrity. 

However, it is the BPOs’ obligation to look out for the best interests of the customer. BPOs prioritise the protection and safety of company data. Since privacy protection is of utmost importance to businesses, it is important for you to ask BPO providers the practices they ue to protect your data.

Communication breakdown is one of the most significant risks associated with outsourcing work. In the past, completing all of your business tasks on your own meant never having to communicate with anyone or report back. Having ineffective communication with your assistant will result in dissatisfaction for both of you. It will save you a lot of headaches down the road if you establish ground rules and make communication strategies clear.

Decide how you will communicate with those you outsource work to. You should choose a format and stick with it. Slack, email, Discord, Microsoft teams, or your chosen project management software are all options. Choose a method of communication that works for you, but make sure everyone is on the same page. There is a higher chance that you will miss something if you receive messages from multiple different sources. Find a BPO company that values the importance of communication.

A good BPO is looking to establish a long-term relationship with their clients. If you see that a company is only willing to work with you for a few weeks, it should be a red flag. Typically, these companies are looking to be put on as many projects just to generate income. The quality of output will be lower and you will be disappointed in the work.

Make sure the BPO you are considering provides solutions that are aligned with your company goals, strategies, and vision. In the end, the results will be more accurate and you will receive the quality of work you deserve.

Businesses who seek to outsource tasks to offshore locations are sometimes concerned about linguistic and cultural difficulties.

Language and cultural barriers are overcome when a company outsources a project to a place where individuals understand and speak English fluently.  For example, software development outsourcing service providers in India are fluent in English and have extensive experience working with organisations in the United States, United Kingdom and Australia. In fact, India is expected to become a technology leader by 2030, with more corporations planning to recruit remote engineers or outsource projects to India.

Time zone variations should be used to your benefit. When individuals in the United States stop working, workers in India begin their shifts. This enables for a continuous 24-hour productivity cycle, resulting in speedier project delivery.

When both the firm that has outsourced its project and the outsourcing service provider are present to collaborate online, the difficulty of collaboration can be overcome by utilising overlapping hours. For the American team, these overlapping hours mark the start of their shift and the end of their shift for the Indian team. In addition to working night shifts, an alternative means of addressing the time-difference problem is to work day shifts. As a result, the Indian team works at night and the US team at daytime.

Businesses nowadays seek to speed up the process of finding exceptional staff while without breaking the bank. They are also looking for team leaders and junior or entry-level employees. Outsourcing is the most effective approach to fulfil all of these goals.

The right outsourcing strategy can help organisations quickly onboard junior workers, as well as team leads who will oversee their day-to-day activities. When you choose an agency strategy, you get vetted and tested employees at a predetermined and predictable fee who can expand as quickly as you need to meet your objectives. Business continuity may be ensured by replacing people with other remote workers if there is a problem with quality of work or a cultural clash.

Another prevalent misunderstanding regarding outsourcing is that it simply helps to reduce operating expenses. This is not correct. Outsourcing can help you save money on personnel and salaries in addition to operating expenditures. Outsourcing allows you to save money on personnel training and recruiting. That component will be handled by your outsourcing partner.

Think of it this way. You are certain of obtaining superior talent at a fraction of the cost. However, this does not mean that your outsourced worker is being underpaid by the BPO. When done correctly, outsourcing can provide several advantages.

It’s a prevalent fallacy that outsourcing impacts the morale of your current workforce. It’s been said that when you outsource tasks, your employees may start to feel alienated or grow concerned that their job is at risk.

However, more times than not, outsourcing has the opposite effect. In reality, outsourcing may allow your employees to focus on more important tasks while simultaneously cutting costs. Furthermore, if your staff are forced to perform repeat, low-level activities, they are more prone to burn out. By outsourcing the repeat tasks, your workers will become more motivated to work on growing other areas of the business.


Outsourcing has become a crucial role in the growth and development of most firms throughout the world, yet it has been plagued by myths and misunderstandings. While outsourcing has advantages and disadvantages, there are far more benefits that can lead to organisational growth. 

Take a look at your bottom line to determine what tasks can and should be outsourced. Look to build a strong, long-term relationship with a BPO company that you can trust. Think about what work can be completed during off-peak work hours that can give relief to your existing employees to avoid burnout. Outsourcing can be a great strategy for most businesses. If you are seeking accounting outsourcing in Australia, then contact our professional specialists at Brisca.