At the moment, “COVID-19” is the trending word (unfortunately so) in the Indian subcontinent and South-East Asia. The impact of the coronavirus strain has worsened in the private and public sectors across this part of the world, just as they are decreasing in European and Far East nations.
Thus far, the pandemic has been seen to decrease the output of the offshoring and outsourcing industry, since the majority of the industry relies on badly-affected nations such as India, Indonesia, Vietnam, and the Philippines, who are under stringent lockdowns.
While most companies in these nations have moved to work-from-home (WFH) set-ups, daily service deliveries and business continuity have still taken a hit, since not everyone has the facilities and wherewithal to work from home. This has led to a mass blockage in workflows, and unintentional breaches of client contracts. Most industries are on the decline; offshore manufacturing is down, while digital and collaborative tools like Zoom and Skype cannot bridge the divide that face-to-face communication does so effectively within the digital service industry.
How Offshore Outsourcing Is Set To Increase
But despite the breaking down of all types of industry, companies and their business leaders are recognizing the need for a diversified medium of business processes, through the constant pressure in this crisis mode. They can see that the overdependence on in-house workers who are unaccustomed to remote working is detrimental to business continuity; the move to providing software, laptops, and facilities for remote workers will certainly aid companies to think on their feet as we move forward.
Some experts suggest the move to full-time WFH set-ups might become a reality, due to productivity-tracking tools, cut-downs on travel costs, and the ubiquity of digital services. A post-COVID-19 economy will be built on business processes that run the gamut—in-house, onshore, nearshore, and offshore.
De-globalizing supply and service chains won’t become a reality because our reliance on a larger pool of talent, specialized third-party vendors, and cheaper labour is not easily resisted. The offshore outsourcing industry is valuable exactly for its flexible and cost-efficient methods. The IT outsourcing subset is accustomed to WFH mode, so the possibilities remain, that other industries could acclimate to it too.
Remote Working Is The Way of the Future
People are relying more on remote working for 3 simple reasons: time-saving, digital services, and travel costs. Business continuity is kept up with the minimum effort since time and money isn’t wasted travelling to and from the office, and online collaborative tools and APIs have revolutionized the way we do work.
While offshore teams are tougher to maintain over long distances, tracking productivity and keeping up deadlines are still enforceable to a reasonable extent for technical, administrative, and accounting services that are done digitally.
What is required to expand this for the future? Better free source software, Wi-Fi and data pack provisions, and cheaper digital devices. Companies are looking into investing in these aspects for the foreseeable future. Most of the services industry is ripe for remote working applications.
Offshoring & Outsourcing Will Continue to Expand
The industry will continue to expand since the benefits of outsourcing outweigh the cons. Here are the four pillars on which it stands:
1. Access to Greater Range of Talent
The medium of outsourcing and offshoring is popular for opening horizons to a vast, international ocean of talent. Whenever a certain local region is undergoing a shortage of specialized talents, the digital outsourcing environment has solved the problem by creating access to specialists and commissions.
With the recent increase in lay-offs and the shutting down of many small and medium businesses (SMBs), legions of well-qualified, proven specialists, including rare ones (e.g., web developers, SEO specialists, data scientists) are now looking for new job offers. The coronavirus phenomenon has closed many doors, but it will only ensure more doors open for the future. Hiring will pick up.
2. Greater Focus On Core Areas & Superior Control Over Workers
Offshoring and outsourcing allow businesses to focus on core areas, instead of splitting resources and time for specialized tasks. Offshoring (as opposed to outsourcing) often requires in-house employees in foreign nations, being directed to focus on certain tasks, at a lower price. As such, control over the business and marketing objectives aren’t lost. Offshore operations can be run from the home nation, by domestic administrators.
3. Cost-efficiency & Time-efficiency
In hiring specialized, overseas teams to undertake tasks, businesses don’t need to pay out of their own pocket to train and provide office equipment to the in-house employees. Labour costs are also significantly lower in offshore regions, which aid companies to get more instances of high-quality work.
Underlying all these advantages, businesses will also save time and resources on the hiring and recruitment process. There’s no need to vet and interview hundreds of new prospects, when there are already trained and established specialists available for hire online, and efforts are not lost on HR resources.