3 Myths About Outsourcing Debunked

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Michael Buenaventura

November 25, 2016

Outsourcing can be a sensitive topic for many people. Perhaps as a consequence, outsourcing myths rooted in fear have taken hold unfortunately. However, outsourcing is anything but the boogeyman. Outsourcing enables businesses to scale rapidly, realize efficiencies, strengthen customer satisfaction and focus on core competencies!

Let us debunk three of these myths right now so that fears can be erased and replaced with wisdom – wisdom that you can use today to help your business to thrive and master customer service! Here is TaskUs’ perspective:

Myth #1: Outsourcing = Destroys Jobs

According to the U.S. Department of Labor and the Heritage Foundation, the American workforce has gained an average of 400,000 jobs per quarter with a new increase of 8.11 million jobs as a direct result of outsourcing over the past decade. Recall: One of the reasons that businesses choose to outsource is to scale quickly. Much of those cost savings are reinvested back into the businesses that then hire additional domestic workers. One Dartmouth study found that for every outsourced job, Americans companies created two entirely new jobs.

Let’s clear one thing up right from the beginning: Outsourcing is not a synonym for offshoring. Offshoring is a type of outsourcing. Did you know that there is a kind of outsourcing that is domestic in nature? It is called onshoring! It is highly differentiated from the two other primary location-based forms of outsourcing offshoring and nearshoring. TaskUs has a fantastic blog post that explains the differences between onshore, nearshore and offshore outsourcing that readers will be sure to want to check out!

Nearshore is when the work is done in a country that is not the same as the business, but is in a near location (like Latin America for US companies).

TaskUs recently opened up an outsourcing center in San Antonio, Texas. We are pretty proud of it actually, because, at capacity, we will have helped the American labor market increase by over 1,100 jobs – jobs that would not have existed in the city before we opened up shop. We are currently looking into opening additional domestic sites to do our part to help local economies recover.

Myth #2: Outsourcing = Poses Huge Security Risks

This one is false too. TaskUs would not have a business if we did not have stringent security protocols, processes and measures in place to protect our partners’ data! In fact, we take it so seriously, that we wrote a white paper about the extensive security measures and processes we have undertaken to ensure that our partners and their users are protected.

TaskUs holds the prestigious PCI DSS (Payment Card Industry Data Security Standards) Level 1 certification from Qualified Security Assessor (QSA) Control Case and the SOC (Service Organization Control) 2 Type 1 audit certification – the highest level of security. We also hold the EU-US Privacy Shield.

The PCI DSS is designed to help organizations protect sensitive customer account data and prevent fraud and various other security issues. A consortium consisting of American Express, Discover Financial Services, JCB, MasterCard Worldwide and Visa International – all founders of the Payment Card Industry Standard Council™ – developed the standard.  

Additionally, the SOC 2 audit was performed using the American Institute of Certified Public Accountants (AICPA) Trust Services Principles and focused on the internal controls relevant to security, availability, processing integrity, confidentiality and privacy of TaskUs systems.

TaskUs uses ControlCase, one of the industry’s top entities for enforcing the security council standards, to evaluate its systems and ensure the highest level of compliance through quarterly scans of its devices, as well as more comprehensive annual site visits for renewal purposes.

TaskUs’ aligns its policies with the ISO 27001 Information Security Management System standards, as well as ITILv3 IT Service Management best practices. Other security controls measures include facial recognition access software, blind-spot free CCTV video monitors, specially modified computers and a series of policies and procedures for the employees as well that include cell phone and paper free zones, bag checks, 24/7 guarded doors and heavily restricted building access.

Myth #3: Outsourcing = Provides Poor Customer Service

At TaskUs, providing our partners with high-quality teammates who take top-tier customer service seriously is what we do on a daily basis. We believe – based on the metrics that we see each day – that this myth is categorically false at TaskUs.

TaskUs spends a significant amount of time and resources to find, recruit and match the best talent with the right partner at the right time. In fact, we have one of the most stringent candidate selection processes in the industry. We believe that doing so is worth it. Why? While the industry, on the whole, has an annual voluntary attrition rate of 80%, TaskUs has achieved an attrition rate that is 45% less! Why does this matter? Longer serving teammates help to grow institutional knowledge and depth of understanding for an assigned partner’s account and by extension its end-users.

Teammates are entrenched deeply within a partner’s culture, processes and way of doing things so that from the end user’s perspective there is no difference between the partner and TaskUs. Further, all TaskUs teammates must pass very stringent language proficiency exams so that we – and our partners – can be confident that end users receive the customer care that they expect and deserve.

However, finding the right talent only solves half the equation. Once a contract has been signed, TaskUs collaborates with its new partner to develop mutually agreed upon KPIs (Key Performance Indicators). TaskUs – and its teammates who provide our partner’s customer service – must reach or exceed these KPIs on a monthly and quarterly basis to remain in good standing. For example, many partners include a contractually mandated CSAT (Customer Satisfaction) metric as a KPI goal that our customer service teammates must – and do – achieve on a monthly and quarterly basis.

Bottom line: TaskUs is a provider of outsourcing services that does things differently. We believe that our partners and their users deserve the best!

:

1. Gupta, Salil. “The 6 Most Outdated Myths About Outsourced Customer Service.” Business 2 Community. Business 2 Community, 17 July 2016. Web. 16 Nov. 2016.
2. Trowbridge, Ben. “Crushing the 10 Outsourcing Myths.” Outsourcing Center. Ernst & Young, 11 Sept. 2014. Web. 16 Nov. 2016.
3. Mayer, Shannon. “3 Myths About Outsourcing That Are Slowing You Down.” 3 Myths About Outsourcing That Are Slowing You Down. Continuum, 8 Jan. 2016. Web. 16 Nov. 2016.
4. “10 Great Myths of Outsourcing and Offshoring Debunked.” BackOfficePro. BackOfficePro, 24 Mar. 2015. Web. 16 Nov. 2016.