8 Outsourcing Misconceptions with Arnold San Miguel

Ep 025 Derek Gallimore

Derek is again joined by Arnold and they will discuss the 8 common misconceptions about outsourcing and run through each briefly



  • Arnold and Derek discussed the 8 common misconceptions about outsourcing.
  • Here are the 8 common misconceptions about outsourcing;
  1. The same outsourcing project can deliver all desired objectives – It’s very difficult to get a one size fits all solution to anything and it’s the same in the Philippines.
  2. Outsourcing services are like buying commodities – People have the tendency to consider outsourcing as a one-stop shop. That’s often like a frictionless market that they can leave and move on to other areas of their business which isn’t true because there are cases wherein you would have to send some of your people to your outsourcing partner’s site overseas for the first few months to make sure that the processes are well executed.
  3. A complex and iron clad contract is a must – Make sure that your protections are there and you can have some basic KPIs and SLAs (service level agreements).
  4. Outsourcing can be done without a contract. – What’s really important nowadays is understanding the service level agreement that you have with your outsourcing partner.
  5. Vendors have a greater liability for failure than in-house employees – This is often debated.
  6. Outsourcing process meaning that it’s not your problem anymore – People often have this tendency to believe that once they have passed on or outsourced a specific function of their business then technically they can get their hands off the management responsibilities and this is entirely false because the outsourced aspect of your business is very important for you to manage.
  7. Outsourcing internationally harms domestic businesses – Derek believes that this could be a win-win for everyone involved.
  8. Your first failure should be your last attempt at outsourcing – Normally when you hire people you’re not always going to hit it right with the people you get. You just need to improve the understanding and the communication between what you want to achieve and what the vendor understood.


Key Points

  • There’s a knowledge gap in the world in terms of outsourcing and this has to be addressed to better understand outsourcing.
  • The Philippines has been in the BPO sector for nearly 20 years
  • If you fail at first attempt at outsourcing just try again and sooner, better results will start to show. It’s not an immediate process and it requires patience for it to work the way you perceive it.



  • outsourceaccelerator.com/podcast/episode25



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