Like nearly all other industries and practices, IT subcontracting also has had its portion of myths . Despite all these myths, IT subcontracting still expands with nice pace, but these misconceptions have surely shifted the minds of some managers who could have gained from subcontracting. In this article, we will see some common myths and will learn why
they are myths only.

First Off, people suppose outsourcing is doing damage to the local economic system. While I am not stating that jobs aren’t affected by overseas subcontracting, the hype that the practice of subcontracting is bad for the economy is a myth certainly. If outsourcing your IT projects allows you to reduce costs and enjoy more earnings, doesn’t that mean more profits for the shareholders. And not to forget that most of the scientific products used in nations where we subcontract work are actually manufactured by western businesses like IBM. So it’s quite apparent that if IT outsourcing cuts jobs in one sector, it also brings earnings to other sectors.

Secondly, outsourcing now seems to be a stigma to some masses in the corporate world. This is probably the influence of propaganda by people who are against subcontracting for their individual reasons. But it’s a fact that numerous international companies have subcontracted their IT jobs to India and numerous other Asian nations, as it also permits them to trim managerial burden and target major objectives. In fact, the main philosophy behind a business is to increment profits and to flourish. By subcontracting, western firms benefit from the talent of an offshore population, which isn’t very much different than employing Indians residing within our own country.

Another popular myth is that we discount many invisible costs related with IT subcontracting, and if all these expenses are considered, then outsourcing doesn’t contract costs. Still, if you compare the hourly wages of employees in Asian nations like Indonesia, you will recognize that there are big saving potentials. In addition, keeping a larger internal workforce means you acquire all the office supplies from desks to UPS for all of them. This significantly shrinks risks for small businesses, and permits them to start with very low investment. And with this statement, we also set straight the myth that subcontracting is good only for large-scale firms that have the ability to monitor workers in various places.

Lastly, there are a couple misconceptions that usually arise due to low quality work by some subcontracting providers. Managers in western countries usually don’t take the essential steps to avoid outsourcing failures because they don’t have experience in this regard. For instance, people think overseas service providers will never deliver on time. This has actually more to do with appropriate selection than offshore subcontracting. You may even find people in the USA  who seldom meet deadlines.

Furthermore, several managers face communication issues while dealing with overseas staff. These matters mostly arise when you select outsourcing providers who grab more projects than they can handle. So hire dedicated workers who would work only on your projects.