The COVID-19 pandemic has changed several aspects of our lives. The shift to remote work and the associated challenges have significantly influenced our private and professional spheres. The global pandemic has also strongly affected the perception of outsourcing work in business circles. A thorough understanding of business tactics based on delegating certain tasks outside the company may have been one way to survive during this difficult time. How has the COVID-19 pandemic affected outsourcing? How can outsourcing help organizations? Read on.
Outsourcing work during the pandemic – table of contents:
Impact of the Covid-19 pandemic on outsourcing work
Even before the COVID-19 pandemic, the global outsourcing market was valued at $221.5 billion according to a 2019 report by Grand View Research. The nationwide lockdowns have forced businesses to quickly shift all possible tasks to remote working mode. This trend has, therefore, created a demand for finding and developing new business models for organizations, including outsourcing.
One of the main reasons which encouraged business owners to use outsourcing services was the desire to cut costs and optimize time. The 2020 Global Managed Services report shows that businesses around the world were looking for remote support to deal with a pandemic crisis. Almost 80% of them resorted to outsourcing. The trend for using outsourced services in the era of the coronavirus pandemic was growing steadily since companies had to become more flexible and open to new solutions.
Many businesses have realized that they need to undergo a digital transformation in a very short period of time to reduce the impact of the pandemic on their operations. The crisis has also forced organizations to rely more and more on the tools and solutions necessary to work remotely. Organizations choosing to delegate some tasks to freelancers needed to have the right software solutions to manage freelance employees. Particularly, FMS systems have played a key role here.
The future of outsourcing work
The previously mentioned report by Global Managed Services shows that 45% of surveyed organizations plan to outsource more services. This is partly because companies have overcome concerns about remote work and its resulting limitations. The popularity of outsourced services to date (e.g. accounting), will continue to grow. The reason for this is the increasing focus of companies on key internal activities, which builds a competitive advantage over other organizations in the industry.
Companies that use outsourcing services, reduce internal expenses and gain access to skilled professionals. This is a perfect cost-cutting strategy that encourages more and more companies to use this business model.
Outsourcing work – summary
The activity of many companies during the pandemic was severely limited. One of the solutions for their survival and growth was the use of outsourcing services. As the pandemic crisis subsides, companies may return to investing in their internal resources. This may force outsourcing companies to improve the services they offer or to reduce the price they charge for providing them. However, the cooperation between the two parties should still be developed in order to be fully prepared for similar global crises in the future.