Which of the Following is True About Outsourcing? Dispelling Common Stigma

Despite all of its advantages, outsourcing still carries an underlying stigma. In this article, we gather some of the most common outsourcing stigmas (for both clients and candidates) and answer which of the following is true about outsourcing.

Outsourcing is a very common practice in today’s tech industry, especially due to the lack of specialised professionals, which makes hiring so incredibly difficult. Nearshore, a specific type of outsourcing increasingly being used in Portugal, allows companies all over Europe to increase their access to candidates, while reducing costs at the same time. Learn more about the other advantages of nearshoring in Portugal in this article.

Moreover, we have a Professional IT Services Glossary which we suggest you take a look at before reading further, so as to check out the meaning of the concepts covered here in greater detail. 

Which of the Following is True About Outsourcing? Outsourcing Myths for Tech Businesses

A Loss of Managerial Control

As a tech business owner, the idea that you might lose some managerial control if you outsource tech candidates is a common and understandable worry. In theory, candidates who work for you through outsourcing are not formally under your command, as you don’t pay their salaries and their work contract is with the outsourcing company. However, in practice, you can communicate with your outsourced employees as much as you want, and you can manage their work in a way that best suits your tech business. In addition, KWAN has a dedicated Account Manager for each client and a People Manager for each employee. This ensures that any concern you might have will be addressed with the tech employee, and any support they need along the way will be provided, so they can do their best work for you.

Outsourced Tech Workers Expect to be directly hired by the clients 

Companies working with outsourced employees assume that after a few months, or maybe after a year, these employees will want to be internalised, that is, to work directly for them. While this might be true for some outsourcing companies, this is not always the case with KWAN, as KWANers like to be a part of KWAN. Why is this? Surely, we hear you ask, candidates want to have the security of working for a tech company on a long-term basis? Do they not worry about being out of a job if their project doesn’t need them anymore?


The answer is no – because they don’t have to worry with the help of KWAN! Our KWANers know that when clients need to dismiss them from a project this doesn’t mean that they become unemployed, as we will work our best to find them another project. In this way, clients can manage their human resources without worrying about recruitment and dismissing employees. Tech professionals, on the other hand, can count on KWAN to find them a new project according to their preferences and professional experience. Everybody wins!

Outsourcing Overseas comes with Complications & Extra Costs

You might think that outsourcing your candidates from overseas will prompt running into many complications, such as time zones, work ethic, costs, payments, and visa issues. But really, when you outsource with KWAN, it is actually a lot more simple than you ever would have thought. Outsourcing for the whole tech team or for a particular position is actually more simple than if you had to recruit and hire new full-time employees. 

There are a number of costs that tech companies frequently don’t consider when looking at growing their workforce. For example, payroll taxes, payroll service fees, advertising, hiring, training, equipment and so on. Just think about salary raises, or having to let people go or downsizing your tech company – not to mention the costs that come along with new employees. When really, by outsourcing a portion of the work with KWAN, you can continue to provide for your current employees, while simultaneously saving enough money to set aside for the long-term growth of your tech company.


What’s more, if you are considering opening up business in a new country, you need to bear in mind all the bureaucracy that comes along when entering a new country of which you know little about. You may need to hire a local accountant to help you deal with local taxes; a lawyer to help you set up contracts and make sure everything is legal about the business you are opening there. If you’re considering going through this process, we wrote a guide about how to open a company in Portugal.

Outsourcing is more expensive than hiring

Whether or not outsourcing is more expensive than hiring directly depends on the situation, but oftentimes outsourcing can provide your company with a more cost-effective solution overall. For example, while it might initially seem to be less expensive to hire someone directly, let’s say for a one year period, if you consider adding up the long-term costs, the more logical and cheaper option would be to outsource instead. By hiring someone directly, they are on your payroll, which means if something goes wrong or it doesn’t work out, then it is your company’s responsibility to find someone else for the role, while giving the original hire an adequate notice period and payout. Also, there is the cost of internal recruiters to factor in when hiring directly. However, if you outsource with KWAN, the outsourced candidate does not belong to your payroll, and it is up to KWAN to guarantee you the replacement of the candidate if something doesn’t work out. KWAN is responsible for paying the candidates that are outsourced to your company, so financially speaking, it is perhaps safer to outsource than to hire directly if you are looking for someone to complete a specific task or role for a set period of time. 

Which of the Following is True About Outsourcing? Outsourcing Myths for Tech Candidates

“Am I Just a Number?”


Tech professionals working for outsourcing companies tend to think they are just a number – perhaps they believe that the consultancy firm they work for doesn’t care about them, and that they only want to please their clients. At KWAN, this is definitely not the case!

Why? Well, where to start! We offer our candidates such a solid support system, from our people managers, to our frequent social events, and to our attention for promoting mental health and a healthy working style and culture. We even offer our KWANers training sessions, so that they can continue to improve, learn, and grow alongside their day-to-day job. 

Fear of Being Out of a Job 

As we mentioned earlier in this article, our KWANers can rest assured that we will do our absolute best to find new projects for KWANers who are dismissed. Because we care so much about our employees, we invest in many resources which provide them with training and mentorship. They are too important and valuable to be let go! 

Therefore, tech professionals don’t have to worry about short-term contracts or not getting paid on a monthly basis. It is up to KWAN to make sure our KWANers will never receive a late payment!

Which of the Following is True About Outsourcing? Final Thoughts

Outsourcing with KWAN provides both tech companies and candidates with an easy, cost-effective, and hassle-free working partnership: highly motivated workers, who are provided with regular training, social encounters, and a great working environment; and pleased clients, who can count on a workforce that is dedicated and focused to do their best work!

We bridge the gap between our tech talent and our tech clients to ensure that both parts are fulfilled and satisfied with the working conditions and environment. If you identify with our values and want to start outsourcing with KWAN, take a look at our website and let us know about your team’s current needs.