Outsourcing: Save your budget during a crisis caused by COVID-19
COVID-19 came as a black swan creating mayhem not only in the IT-sphere but also in businesses of all kinds. From slumping sales to transition to remote work worldwide, CEOs and managers are struggling with a wide variety of problems. Old methods are powerless. To protect yourself from the global economic collapse, it is imperative to search for alternative business solutions. Today we will tell how outsourcing could serve as a key for saving your budget during a crisis caused by a coronavirus.
How does COVID-19 rewrite the future of business?
The world has just stopped. Every day we observe a massive shift towards downfall in the economic world and usual order of things. The quarantine takes away millions and billions of dollars, and every day these figures become even bigger. These economic consequences will be felt throughout 2020, and possibly longer.
Contrary to other fields, the IT industry remains to be less vulnerable, so it continues to operate on the market. But, this doesn’t mean it doesn’t affect it at all. Coronavirus pandemic affects the degree of business activity, and here are some fundamental changes:
- The productivity and implementation of projects will decrease because it is not easy to switch from office to remote work. Do not forget that children and family members can distract colleagues at home.
- The loss of projects. Especially those that are aimed at offline business, because this area will now be in crisis.
- Everything will go online. Companies are expected to be more flexible. During quarantine, the majority of them transferred to online life. It is quite logical to conclude that there is a demand for all procedures that are carried out online: online training, online stores, software products, games, and many other services.
- Flexibility will be the number one condition for success. A business that does not change is doomed to decay. Remote work will become strategic.
All this suggests only one thing – the one who remains flexible and online will survive. And when it comes to flexibility and effective organization of remote work, outsourcing can be a great way out of the COVID-19 crisis.
How does outsourcing help to overcome the COVID-19 crisis?
In a situation of instability, an uninterrupted back-office is required more than ever. Outsourcing practice helps companies solve functioning and development problems by reducing costs, increasing adaptability to environmental conditions, improving the quality of products and services, and reducing risks.
There are several benefits you can reap from outsourcing:
- Continuity of Services. With outsourcing, you can be sure that a certain amount of tasks will be performed. Schematically: QA testing engineer never goes on vacation, and the PM manager does not quit amid an extraordinary bug detection before release.
- More time for strategic planning. This is a win-win situation: an outsourcer fully meets the needs of non-profitable business units, and the owner has time for strategic planning, business development, and creativity.
- An absolute understanding of what you pay for. Outsourcing involves a fixed price for one operation. As a rule, outsourcing specialists have lower salaries, but at the same time offer a balanced ratio with high-level services. Besides, outsourcing reduces costs on recruitment, training, and infrastructural development.
- No difficulties with remote work. The situation with the virus forces the organizers not only to cancel significant events but also makes us think about transferring employees to a remote mode, which they are not used to. But working at a distance is a simple process for outsourcers: their absence in the offices does not affect the efficiency and performance of tasks.
To sum all the points mentioned above up, outsourcing is a great way to increase the efficiency and profitability of the enterprise during an unstable situation.
Tips for choosing a competent outsourcing company
It could be wrong to say that every outsourcing company will provide you impeccable results. For making a proper decision, there are several points for you to keep in mind.
- Understand what tasks you can delegate. There are routine tasks, and there are those that involve strategic thinking and the skill of making the right decisions. Outsourcing will show great results for routine tasks, simple projects, or those that have an hourly scope. Delegating such tasks, you won’t risk and accurately get the expected result.
- Take care of data security and privacy. Legal support is the question number one to clarify before the collaboration with an independent vendor. For example, QATestLab (an independent provider of quality assurance and software testing services) signs several documents: NDА (Non-Disclosure Agreement) to guarantee the protection of provided commercial and confidential information; Professional services agreement that specifies the scope of services.
- Choose the most appropriate partnership model. Since the scope of tasks can be various (a continuous, regular, defined range of tasks), there should be corresponding pricing models. If an outsourcing provider offers you one price for the full range of services – this, of course, is a questionable decision.
Cooperation with the independent provider might strengthen your internal team and assists in achieving the set goals.
Final word
It is too soon to tally up the total costs of the COVID-19 crisis, ’cause it is still ongoing. After all, nobody knows how long it is going to last and what consequences we will face later. The economy and life may be reshaped, and the time ahead may be the hardest for everyone. We are all in this together. Right now, there is no other way than help each other as best you can and lean on those you trust. Stick together and choose trustworthy business colleagues.
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