It would be an understatement if we said that the year 2020 has been unkind to the world. The global occurrences caused by the pandemic of COVID19 have changed our daily lives, and have affected every single aspect of society, interactions, communication, and business. The impact of Corona virus was massive, and it has caused all sorts of troubles for the economy worldwide. As for hiring, it was no exception to the rule, and it changed rapidly once the consequences of the virus have started to show. Many companies have paused their recruitment and hiring processes, mainly due to the uncertainty of the realization of their projects, and the income they would typically be receiving. It seems like countless organizations have put their goals on hold. However, numerous businesses have started to explore outsourcing and have found this practice useful, efficient, and budget-friendly.
The Benefits of Outsourcing
Outsourcing is the practice of selecting a party outside of the business to complete particular tasks, deliver services, or build products. The outsourcing company handles the duties that were previously performed in-house by the company’s employees. It implies shifting assignments, operations, functions, or processes to an external workforce. Even though the fundamental idea many business owners have when choosing to outsource specific services is to cut costs, more and more companies are recognizing the true perks of collaboration with third-party organizations and teams.
Choosing a suitable outsourcing partner can have several advantages.
Outsourcing inevitably increases productivity and performance
It produces a changeable level of output and eases the path towards the positive outcome
Outsourced teams enable in-house employees to focus on the core business and develop new strategies
Collaborating with an outsourcing company introduces an organization to new useful skills, knowledge, expertise, or resources
It increases flexibility and helps enhance adaptability when it comes to meeting changes and newly found circumstances
Outsourcing saves time and leads to a quicker and more trouble-free result
Outsourcing, when done right, points to innovative thinking, discovering new methods, and promotes authentic and healthy leadership
Outsourcing During the COVID-19 Pandemic
The Covid-19 pandemic brought difficulties and tremendous alterings to the business landscape across the globe. Its impact on the global market is going to be huge and lasting. Things haven’t exactly been smooth sailing for the outsourcing companies either. The virus did disrupt many collaborations, for sure. However, outsourcing still feels like a safe choice for countless employers, and it brings along some much-needed assistance to their partners.
According to Statista, the global outsourcing market was estimated to be worth $92.5 million during 2019. The recent data shows that the market size of the outsourcing industry in the US in 2020 is $132.9 billion, and the experts are predicting its growth. Statistics suggest that outsourcing in the US will rise by 1.6% the same year.
As for the UK, almost a third (28%) of businesses are contemplating outsourcing at least one business area due to the Covid-19 crisis.
The Advantages of Outsourcing During a Time of Crisis
Staying competitive in today’s swiftly growing and evolving business environment, for all companies, despite their size or niche, means to continuously be on the lookout. Organizations are always searching for adequate ways to control their costs, to boost efficiency, and heighten profits. Having the impact of COVID-19 pandemic on businesses in mind, we can all now fully understand the struggle.
Outsourcing certain tasks, such as HR functions, sales, or customer support, serves organizations to achieve their aims. Outsourcing decreases many costs and ensures that in-house staff is investing their time, potential, and strength on core capacities.
By outsourcing some of the essential yet time-consuming tasks, the organization can direct its attention and energy towards its goals.
Pros of Outsourcing in 2020
Outsourcing brings substantial gains to businesses, especially during the era of inconsistency and questionable aftermath.
Outsourcing unlocks a broad and diverse talent pool and brings skillful individuals and teams onboard;
The quality of the service or the product will ultimately increase thanks to the expertise of outsourced professionals
Their onboarding process (as well as the entire collaboration) can be conducted accordingly to health regulations and recommendations; The majority of outsourcing companies encourage work from home and are fully equipped to fulfill all given responsibility, meet the deadlines and expectations, and reach milestones
Internal staff needs to remain focused more than ever; Many aspects of the business as they once knew it has quickly devolved or were altered due to the global crisis. Changes require a swift reaction. A knowledgeable outsourced team will help in-house staff save time, energy, resources, and aim their efforts toward overcoming problems or impediments they might face.
Companies should consider several aspects while choosing the right outsourcing partner, negotiating with them, and managing relations.
Choosing an Outsourcing Partner
Before a company chooses a potential outsourcing partner, there are some things they should keep in mind. Business owners need to provide a transparent and accessible idea of their business goals, short-term and long-term. Collaboration with an outsourcing company starts with having a strategy that manages to produce the aspired outcome.
Skills and expertise unquestionably represent some of the most deciding factors while choosing an outsourcing partner. Familiarity with a particular market, its requirements, customers or users and their needs, and the motivation to keep up with all the changes make an outsourcing company a desirable partner. Hiring a competent third-party development team, or a successful customer support team have that in common – the results they’ll drive originate from their mastery.
And let’s not forget another crucial trail that leads to building a thriving team. The outsourced service provider needs to share the company’s culture and values.
Outsourcing is Cost-Effective
Cost-cutting isn’t the single aim organizations strive to accomplish when looking for an outsourcing company to rely on. Still, it does represent an influential factor. Which makes a strong case at this point. The odds are in favor of hiring a third-party team for all those large and small businesses affected by the pandemic.
Outsourcing can help business owners obtain more flexible budgeting and variable costs and direct their investments towards the areas that need them the most. Outsourcing lowers hiring, training, and overall labor costs significantly. Since the entire world is facing the recession, calculating costs carefully and attempting to eliminate some of them is in order.
Staying Safe & Working Remotely
The safety precautions companies are taking include remote work. We’re all doing our best to agree with the rules of a newly developed social convention, labeled as “social distancing.” Nevertheless, many teams are remaining sociable, productive, motivated, and well organized. Their success, while working remotely, can be attributed to two major perks. Their first ally is every industrial revolution, starting with the second one, especially, which has moved numerous services and businesses into digital space and the universe of online communication. Slack, Hangouts, and Zoom enable long-distance colleagues to stay in touch and in the loop.
The second, and the more important factor of working remotely and feeling good about it, is proper management.
Finding an outsourcing company that feels reliable, prepared, punctual, and organized makes remote work trouble-free, pleasant, constructive, and profitable.