Leadership - Sharesource

Three Key Reasons Why You Need To Outsource In 2021

Written by Clare Anderson | Feb 19, 2021 7:37:03 AM

Global markets and improvements in technology have changed the way we work. The World Economic Forum claims that the number of permanent remote workers is set to double in 2021. In today’s volatile and disruptive environment, staying competitive means capitalizing on the world being a smaller, more tech-savvy place. Hiring an overseas workforce to outsource certain business functions can lead to lower overheads, increased growth and greater focus and service quality. Overall, these benefits lead to a healthier bottom line. This all sounds great in theory but if you’re still sitting on the fence about whether to offshore outsource, promises and benefits that sound great aren’t enough. You need evidence.  Here are three key reasons from respected sources as to why your business should outsource roles to a trusted offshore partner in 2021:-

 

1/ COST SAVINGS - Deloitte’s 2020 Global Outsourcing Survey interviewed executives across their clients, service providers and lawyers globally, both before and after the start of the COVID-19 pandemic, to get an accurate representation of how industries have responded. Deloitte is one of the most trusted sources for outsourcing statistics and market research, and their survey shows that, once again, despite the pandemic in 2020, cost reduction remains the primary objective of outsourcing. Around 70% of those surveyed said outsourcing was used as a cost-cutting tool, with “the uncertain economic environment switching the focus back to the numbers.” A further 40% said outsourcing provided organizational flexibility to deal with the changes brought about by the pandemic - remote work and fast-paced digitalisation. The outsourcing trend of embracing disruptive technologies remains. However, the fallout from COVID-19 is signalling a return to basics: shoring up value and driving down costs, with a renewed focus on risk management.

2/ TALENT GAP - The IT industry has long experienced a skills gap. According to a 2020 CIO survey conducted by KPMG, the global shortage of technology skills remains high, almost the same as during pre-COVID times. Businesses are increasingly looking for tech partners to supply the crucial talent they need and get the most out of their investment. COVID-19 has eliminated country borders and accelerated globalization and cultural diversity trends. Businesses will continue to hire top talent from around the globe in a post-crisis world. Add to this that many more people are now accustomed to remote working and will not be ready to lose their work-life balance and the need for a ‘remote-first’ operating model becomes even more apparent.

3/ LOCATION INDEPENDENCE - Gartner’s Top Strategic Technology Trends for 2021’ report examines nine strategic technology trends that will enable the flexibility that resilient businesses need in the significant COVID-19 upheaval and current economic state of the world. One of the three main themes this year’s trends fall under is location independence. The pandemic has shifted where employees, customers, suppliers and organizational ecosystems physically exist. Location independence requires a technology shift to support this new version of business. Gartner states that an ‘Anywhere Operations’ model will be vital for businesses to emerge successfully from COVID-19. This operating model means that businesses need to be accessed, delivered and enabled anywhere in the world - with customers, employers and business partners operating in physically remote environments. This model is ‘digital-first, remote-first’ and is very rapidly becoming the new normal. Clearly, this feeds into the growing trend to outsource remote teams globally. Wide adoption of digital communication and globalization means developing countries have become attractive outsourcing locations.

 

As Deloitte reports, changing business scenarios, heightened travel restrictions and increasing customer expectations are all making agility critical. Companies are accelerating outsourcing as they learn to collaborate in a world where speed, quality, flexibility and cost are more important than geography. Preparing for the post-pandemic world means the continued fluid and rapid evolution of business continuity planning. Ingraining a positive remote culture will help you access global talent from the most cost-effective locations. Clearly, outsourcing provides an essential tool for reaching strategic short-term resilience and long-term growth goals.

If you’re looking for an offshore outsourcing partner who can provide super-smart, cost-efficient and diverse tech talent, Sharesource could be the answer you’re looking for. Download our eBook, '30 Essential Questions to Ask a Provider Before You Outsource’ to ensure you're informed and have the right questions to ask when considering the next step.