Outsourcing is just one more area of business; the pandemic has changed for the foreseeable future. Thanks to COVID-19, companies are also looking to develop greater business agility moving forward, and they are turning to outsourcing in growing numbers. For example, in the UK, 28% of companies are looking to outsource at least one business area following the Covid-19 crisis. Elliott Jacobs, the EMEA commerce consulting director at LiveArea, explains further.
“Although the pandemic is ongoing, we are beginning to see long term business strategies emerge, primarily the widespread shift to agility and digital. Outsourcing not only means businesses can scale if needed, but also bring in new capabilities and fresh thinking quickly and efficiently.”
But, what may be the right path for one company may not be the smartest move for another. Should you consider using specialists to amp up your competitive advantage? What are your options? Let’s review several different considerations for relying on outside specialists, particularly in the technology industry, and look at ways companies are reaping, bringing big-time benefits even in these uncertain times.
Consider your options – offshore or nearshore
This type of relationship refers to a company acquiring a team located outside the organization’s home nation. Typically, working with an offshore partner was a popular choice in the 1980s through the early 2000s by businesses looking to leverage outside experts for critical and on-going support – such as manufacturing, technical expertise, or customer support. By going offshore, many business owners experience lower costs and can improve efficiencies. For technology companies, this approach is popular because it gives businesses access to technical skills and talent in other regions, and often it reduces labor expenses.
Nearshoring, not surprisingly, means choosing a partner located in neighboring countries and regions. What are the benefits? This type of agreement is attractive because it creates an environment where communication, speed, and accuracy are paramount. Because partners are closer in proximity, nearshore arrangements are more straightforward and make communication and collaboration much simpler.
What about BPO?
Often the term BPO or Business Process Outsourcing is used interchangeably during the outsourcing discussion. While it’s similar, BPO generally focuses on seeking support for any business-related task. Examples of BPO may include farming out back-office tasks or specific projects such as improving sales leads. Consulting with specialists for administrative activities such as accounting, finance, account management, human resources, or customer service also offers a competitive advantage. Taking these steps can go a long way toward helping companies scale and stabilize in uncertain times. Organizations can achieve their goals and ensure that full-time employees spend their time and energy on what they do best.
Digital technologies make remote work second nature
Over the last six months, we’ve all changed our daily routines – from work and school to entertainment. During this time, even companies resistant to the idea of ‘remote work’ are revamping Work-from-home (WFH) policies. The growing acceptance of remote working is making it easier than ever to rely on external partners. Tools for video conferencing, collaboration suites, file sharing solutions, and centralized data storage solutions can facilitate seamless remote collaboration for all parties – whether partners are offshore, nearshore, or simply in the same city working from home. Solutions like virtual desktop infrastructure (VDI) and desktop-as-a-service (DaaS), which also give employees and contractors the ability to access desktops from anywhere and from any device, are also making it possible to get more out of business relationships.
Focus on the future
Today, outsourcing continues to be a great way to reduce risks and cut costs, but it’s also shifting into a new role. It’s allowing businesses to maintain high agility levels, giving them the stability and scalability to innovate. Regardless of the size or industry, building a partner network can help companies get back in the driver’s seat to control costs, increase efficiencies, and boost profits. Do you have questions about how outsourcing can impact your business? Call or email us! At Outsourcive, we specialize in helping companies focus on their core business to stay productive and profitable no matter what that future holds. Let’s do this together!