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What’s the Impact of Covid 19 on Outsourcing Industry?

The COVID-19 outbreak affected our jobs in a great way. Employees were requested to work from home and even some of them were laid off in an effort of organizations to cut costs. One of the major changes was the implementation of a remote workforce.

People were asked to work remotely and although the lockdown is over and we can get back to the office, the remote working arrangement is expected to last.

Since having a remote workforce was a solution for businesses, it also led to an increase in opportunities for outsourcing. As a result, the impact of covid 19 on outsourcing industry was noticeable since many corporations opted for this option during the pandemic.

Why Has IT Outsourcing Increased Since the Pandemic?

Before the COVID-19, organizations were moving away from outsourcing services since they faced several challenges with this solution. However, the covid impact on staff outsourcing caused businesses to consider this option again, particularly IT outsourcing.

Here we have some of the reasons why the demand for the global IT outsourcing sector increased during the pandemic.

Organizations accelerating digital adoption

Since we live in a digital world where everyone is connected, businesses have to speed up the adoption of new technologies if they want to offer a great customer service to their clients and be ahead of their competitors.

In addition, by accelerating digital adoption, corporations are able to face crisis effectively, and they can bounce back quickly after this crisis has over.

However, if the company doesn’t have enough IT experts and resources to know how to adopt digital technologies and adjust them to their needs, it’s going to be difficult to achieve the goals they have set in this matter.

For this reason, organizations considered an IT outsourcing model that allowed them to have access to IT specialists, technology, software and resources that could be implemented in their processes. This way they ensure a hassle-free solution.

Fast-tracked digital transformation

The covid impact on business process outsourcing caused organizations to consider a digital transformation for their processes. However, this had to be done quickly since more and more people were relying on digital tools to establish communications and collaborations.

In addition, the customer demands forced businesses to consider new technologies to offer a better customer experience, with modern and faster responses.

Therefore, companies opted for contacting IT outsourcing agencies that could support them in this aspect. With the help of external IT experts, companies are able to implement tech innovations in their processes and redefine strategies by using modern tech solutions.

Workplace Transformation : From Office to Work from Home (WFH)

As we mentioned before, workplaces weren’t the same because of the COVID-19 pandemic. Employees were sent home and they learned to work remotely.

Although there was skepticism towards remote teams, both employers and employees put their concerns aside and realized that this was a great solution. They were able to see that productivity wasn’t affected by having a remote work delivery. So, having an external team started to look as an excellent possibility.

Therefore, the impact of covid 19 on outsourcing industry was that employers realized that they could have fewer employees working remotely and they still get the results they expected.

So, businesses looked for IT outsourcing agencies that offered remote business support. This allowed them to access to additional benefits such as standards compliance and innovative tech solutions.

Outsourcing has helped to Reduce Cost

Another great reason why IT outsourcing demand increased during the pandemic was because it allowed corporations to save money.

Since the COVID-19 outbreak had a major impact on the economy, businesses were looking for ways to counteract the impact on revenue. Therefore, outsourcing was a viable cost-effective strategy.

By partnering with an IT service provider, the organization got access to IT specialists and developers that otherwise were too costly to source. In addition, an IT outsourcing model allows the company to access to technology and resources that are usually accessible only to large corporations.

Another cost reduction effect of outsourcing relates to decrease expenses in office space, which also cuts down associated costs like maintenance, utilities, etc.

Additionally, a contracted workforce doesn’t require the organization to invest in recruiting, onboarding, training, management, and any other HR-related cost. 

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