Covid-19 affected nearly every field, and outsourcing is no exception. The global pandemic brought to light all of the traditional outsourcing model’s weaknesses and ignited the need for change.
Hence, in this article, we will look at how outsourcing is changing due to the pandemic.
Key changes in outsourcing
If we had to summarize the changes in one phrase, that phrase would be remote work.
Many companies implemented their work-from-home policies this past year, and most plan to continue this shift. According to Gartner’s survey, more than 80% of companies are considering permitting remote work after the pandemic.
As so many companies will remain remote or partly remote, the outsourcing sector will be inevitably affected.
- More and more services will be outsourced. Even though many outsourced services (such as accounting services or virtual bookkeeping services) were quite common even before the pandemic, their role will only increase. As the companies will be focusing their resources on essential working positions, they will outsource the so-called non-core functions. This will be most applicable to small or medium-sized companies. For instance, outsourcing small business accounting is likely to be one of the most commonly outsourced services.
- Tech-friendliness will be indispensable. If before Covid-19, technologies were necessary, now they are essential. Companies will be collaborating with outsourcing companies that offer remote employees apt to adapt to technological advancement. For instance, a financial expert who could provide an online payroll service using the latest software will be irreplaceable and highly desired by companies.
- Co-sourcing will become more common. Co-sourcing is a one-to-one business collaboration with the long-term in mind. In practice, co-sourcing could mean working on the same project (or product) both within the company and outside. For example, a startup could work on releasing the latest mobile payment app and outsource a financial expert for collaboration.
- Value networks will continue increasing. In the outsourcing context, value networks refer to the connections between different outsourcing providers. In the aftermath of the pandemic, we are likely to see outsourcing companies working together to provide higher-quality services to their clients and adapt to technological changes both faster and more efficiently.
- Outsourcing will continue to ensure efficiency for businesses. Efficiency will be even more essential after the pandemic, and outsourcing will help to achieve it. Outsourcing bookkeeping services or hiring virtual assistants will enable companies to achieve maximum productivity by focusing on high-value work positions and employees.
- Outsourcing will continue to aid in business development. More and more companies get comfortable using outsourcing services as they allow them to reduce expenses and eliminate the need for new non-core staff. By outsourcing finance professionals or HRs, businesses save on training and office space and invest that money in business development.