What is Outsourcing?
The business world is always in a state of flux, with new technologies and strategies constantly emerging. The outsourcing approach is not some tot stuck at the kids’ table. At this point, it is a full-blown grown-up that makes his own rules. Outsourcing is no longer a novel concept; it is a staple in businesses all over the world.
Outsourcing is the practice of hiring a third party to perform a specific task or function that would otherwise be performed by employees within a company.The practice has been around for a long time, but it has only recently become popularized as a way to cut costs and improve efficiency.
What does this mean for your business?
By Outsourcing certain functions of your business, you can focus on what you do best and leave the rest to the experts. This can help you save time and money, and it can even help your business grow. By shifting the focus of your hiring to remote staff, you’re able to find the right people for specific needs from anywhere in the world.
Why has Outsourcing is becoming more popular?
- Cost Savings: Outsourcing Development allows businesses to save money by contracting with a third-party provider. This provider will often have lower overhead costs than the business itself, which allows them to offer lower rates. This also allows you to focus your finances on the work itself rather than worrying about outside costs that have a less direct impact on your business goals.
- Increased Efficiency: Outsourcing development can help businesses become more efficient by allowing them to focus on their core competencies. By shifting the work load in non-core activities, businesses can streamline their operations and improve their overall productivity.
- Expertise: Outsourcing allows businesses to tap into the expertise of a third-party provider. This provider will have years of experience in the industry and will be able to provide valuable insights that can help businesses grow. Professionals in any industry exist even far outside the reaches of our immediate community, tapping into those resources can be essential for your business to grow.
- Flexibility: Outsourcing provides businesses with flexibility and scalability. This means that businesses can increase or decrease their requirements as needed, which allows them to adapt to changes in the market.
The Outsourcing Boom
In the last two years, Outsourcing companies have seen unprecedented growth. This growth is due to a variety of factors, including the COVID-19 pandemic.
The pandemic did very little good but, playing devil’s advocate, the whole worldwide COVID-19 situation did strengthen the trust between Western companies and Out-staffing agencies. “Thanks” to the virus’ efforts, in-office businesses have suffered a considerable blow. Some were forced to downsize. Some have halted operation due to lockdown restrictions. And some had to close for good. Without the resources that so-called big business has, SMEs (small- and medium-sized enterprises) have had a difficult time surviving the quarantine.
Outsourcing companies, on the other hand, have been thriving. Sure, there were some worries about automation, but they’re nothing new. And, as the pandemic had put these worries to rest, the already growing industry has picked up even more momentum. Using third-party vendors’ services, many Western businesses have been able to stay afloat, cutting costs and hiring experienced talent when it was needed most. Using different techniques like remote staffing, businesses are able to direct their resources where it matters most. Some have even eliminated the need for offices all together.
The Remote Mode
His detestable majesty COVID the 19th giveth less than he taketh away. That being said, from most workers’ perspective, the quarantine has had its bright side (or two).
To start with, because most countries went into lockdown modes (some more, some less), remote work has put the pedal to the metal. And, as much as managers may disagree, most employees love remote work more than they do its in-office counterpart. And, unlike middle management, the high-level executives should be happy about it. According to the Enterprise Technology Research findings, most companies see a sizable increase in productivity from remote workers.
Of course, some tasks and responsibilities cannot be done remotely. But, in IT, those are the minority that have nothing on the majority’s authority. More often than not, you can let the employee work from home and their productivity will grow (or stay the same). And, needless to say, you’ll also be able to cut costs as you’ll be spending less money on rent, hardware, and energy bills.
The remote work advantages are apparent and manifold. Nevertheless, despite telework’s breakthrough, some industries remain stubborn, encouraging or downright forcing employees to come back to the office with lifted restrictions. Some people are stubborn like that. But, try as they might, the McKinsey & Company analysis tells us that the shift to remote work is not some fad and is, in fact, here to stay.
According to a survey by the Pew Research center only 20% of individuals surveyed said they had worked from home before the COVID-19 outbreak. This is in contrast to the 71% of the same group who now work remotely. Over half of the participants at a whopping 54% said they would want to continue working from home after the pandemic is over. With a range of 77%-87% of the participants having access to perform the core functions of their job in a remote setting. This isn’t to say that “all” jobs can be performed remotely, but the opportunity for outsourcing work in a remote way has proven itself to work over the past two years.
The Future Of Outsourcing
This is all exciting but what does the future of this system look like? Outsourcing is evolving rapidly to keep up with the ever-changing needs of businesses. The industry is expected to continue to grow in the years to come. Outsourcing offers businesses many benefits, and businesses are beginning to realize this.
In the past two years, the practice of IT-Outsourcing has seen a dramatic growth.There are more IT companies that outsource certain services or entire projects than there are those who don’t. The industry is at LEAST $100 billion large, and should reach considerable $400 billion in less than five years.
The pandemic should end soon (fingers crossed) but one thing is certain – Outsourcing has become a new norm, and the industry will not stop growing anytime soon.