Why is Outsourcing important in the new normal?
The COVID-19 pandemic has lingered on for almost two years and businesses have been forced to change their tactics to survive in the new normal. Companies are rethinking their business strategies and realigning their resources to overcome organizational challenges. An emerging practice in this time of uncertainty has been the adoption of outsourcing which is challenging the conventional ways of business. While outsourcing has been around as a practice, especially in IT, for a few decades, innovative technology-enabled and flexible operating models are fueling today’s surge for outsourced services. Here are some of the key benefits of outsourcing in a post-pandemic world.
Accelerating Digital Adoption
COVID-19 has fast-tracked digital transformation by as much as 6 years for global companies, according to some experts. The increased reliance on digital communication and online collaboration tools is a staple of today’s work environment. Change in customer expectations along with the challenges of the pandemic has led businesses to embrace new technologies to offer faster, modern, and more convenient experiences. Grappling with the speed of change, companies are using external support to ramp up modern tech solutions. According to a recent Forrester report, 45% of IT decision-makers are looking for flexible and as-a-service models for technology solutions during these changing times. Digital Transformation is a top priority for businesses as it provides resilience and promises business continuity in uncertain times. Outsourcing partners offer flexible and scalable services for fulfilling resource needs that cannot be fulfilled by in-house teams.
Cost Optimization
For many businesses, COVID-19 has been a big financial burden. Companies are looking for cost-saving options, now more than ever. Outsourcing IT services is a boon at a time like this as it enables companies to eliminate the cost of infrastructure, maintenance, overheads, and so on. Outsourcing companies provide businesses with the opportunity of quick onboarding of required resources without the expenses related to recruiting and onboarding. Additionally, costs related to operational expenses, training and development, employee benefits are taken care of by outsourcing partners thereby reducing the cost to the client. This helps in effective resource allocation, and in turn, results in business growth.
Risk Mitigation
Business risk is not just limited to financial risk, especially in this continuing pandemic situation. Business agility, innovation, and continuity are some of the pressing challenges of our times that hit unprepared companies the hardest. Outsourcing enables businesses to be agile while having access to the latest technologies and skilled workforce. This empowers them to adapt quickly to evolving situations and stay ahead of the game.
Driving Innovation
Innovation thrives in the company of experts having unique competencies. Outsourcing provides access to talent from around the world that has a varied set of experiences and expertise. This also enables you to hire on-demand talent for areas where you don’t need a large in-house team. Outsourcing companies provide talent that is uniquely invested in the success of your brand, which can lead to more innovation and phenomenal outcomes. Aside from being a part of innovation, outsourcing allows your in-house teams to focus on the core areas of your business. Further driving innovation and creating superior customer experience.
Final Thoughts
Be it new technology, customer expectations, work tactics, or faster time to market, outsourcing addresses specific challenges for your business. During the pandemic, outsourcing has proved that there is a lot to offer in terms of business continuity and resilience. Apart from delivering productivity and efficiency, outsourcing can help in fueling business innovation and digital transformations, which are fundamental for businesses today.