The traditional outsourcing model may be weakened after the COVID-19 was announced. The pandemic is leading us to forming a “new normal” which is likely to change the way companies are linked to outsourcing. Is outsourcing capable of dealing with these changed without any impact on revenue and costs?
Everyone of us knows that COVID-19 had impact on the global economy. Furthermore, organizations that outsourced core businesses and operations have been exposed to that too. For now, we wouldn’t tell that companies have peaked but we will continue to explore the situation.
What we would learn for sure is to better foresee the risks and be prepared for them in the future in order not to affect our daily business. Firms are starting to build strategies, they engage special departments for that and make sure all responsible teams are familiar with these strategies. This will be helpful and may prevent us from big loss.
COVID-19 made us think and led to changes, which resulted in increasing our attention to specific details or generally accept new ways of working. Companies starting planning:
- Working remotely – of course not only outsourcing but all companies find a way to organize their work remotely. And we must say they succeeded in it. A lot of people got used to the remote work and they describe it as “the new normal”. It must be taken into consideration that remote working required a lot of data security measures, not only physical as in the office but also online. Except need to control the level of performance of the service provider with no physical presence. We must say for now we think companies are doing great on both topics mentioned above.
- Business continuity and disaster recovery. This means we need to have a place where work does not stop by any event. Workers and systems will be easily transferred to that place and they will be able to work as usual.
- New outsourcing strategies – one key benefit of outsourcing is cost saving when partnering with countries like Bulgaria, where personnel, tax and rental costs are lower. Companies starting exploring the possibilities of expanding their business abroad even if they did not do that in the past.
- Cloud migration – or in other words make sure that cloud storage gives you the flexibility to work from everywhere. Practically outsourcing is the best model to do that, you can also hire a team – an outsourced one – who are specialized in cloud migration to do that for you. You might have it faster and cheaper.
In the short term COVID-19 has had a significant impact on outsourced arrangements. But in the long term we expect to see strong and sustained demand for outsourced services, because a lot of companies developed a way to transform their businesses which made them “outsourcing” friendly. The points above only confirmed that outsourcing is sustainable in the long run and may be developing even in a pandemic crisis.