The global outsourcing industry saw some of its biggest numbers ever last year. While the industry was already thriving, its popularity grew further as a result of the pandemic. With organisations unable to function the way they used to, they relied on offshore service providers more than ever.
Along with helping businesses succeed during the pandemic, outsourcing has also done a lot to help develop modern businesses as we know them. Curious about the impact of outsourcing on businesses worldwide? Read on to find out about it:
1. Allows Quick Expansion
One of the biggest challenges a business faces upon expansion is finding and hiring new employees. While the market has a lot of talent out there, businesses can’t spend weeks going through resumes and interviewing candidates for months before finally hiring the right resource.
Outsourcing resolves this issue. It broadens the number of potential employees by a large factor. Instead of looking at a small number of people available locally, the organisation could now be looking at possibly hiring remote employees from all over the world.
Also, the offshoring company that the organisation is working with would constantly be hiring employees. It would have access to many promising remote workers at all times.
This would allow any organisation to immediately increase its staffing, with qualified candidates ready to help scale up its operations as soon as they join.
2. Reduces Cost of Business
Cutting costs at the right places might be the strategy that could save a business from losing money. However, cutting costs without looking at the consequences for the company might disillusion the employees and reduce the revenue right alongside the costs.
Outsourcing functions such as software development allow the company to reduce its employee costs while also restructuring the rest of the business to take full advantage of the new remote working employees.
Once the new employees have been hired, the organisation can reduce its office space, thus saving on maintenance, rent, and electricity costs. The salary costs in offshore countries are low enough that as many as three employees could be hired for the cost of one.
With the cost of business reduced but the quality of products and services still the same (or even better), the company would invest more in itself and its employees.
3. Provides Employment Opportunities
The global job market has seen many ups and downs due to the pandemic. Many employees have been let go in several organisations, while other organisations have been wanting to hire more employees but have been unable to do so.
Organisations can create more jobs by outsourcing jobs such as software programming to offshore countries. This will improve the quality of life in multiple countries while increasing cash flow worldwide.
The cost of living in a country like India is far lower than in the UK. Hence, an organisation could theoretically support two employees living in India for a smaller cost than supporting a single employee in the UK.
India is known as the IT hub of the world, with the country’s IT exports growing to tremendous heights. As talented employees such as software programmers from India start getting improved employment opportunities worldwide, it’s a win-win situation for both the employees and the organisations hiring them.
4. Increased Digitization
The distance between people during the pandemic has led to a rapid improvement in technology that helps people communicate. From the rise of Zoom to several other video chat services that became increasingly popular, the world suddenly saw a massive surge in the number of communication services available.
Remote work and IT outsourcing companies have made a significant contribution to the improved digitisation worldwide. Employees working from all around the world need better communication and documentation tools to ensure that they are getting their work done.
This has led to improved internet quality, better devices (cameras, laptops), more efficient software, and increased innovation in the tech industry. All this new digitisation means clearer and more transparent lines of communication as well, which is ultimately better for both the business and its stakeholders.
5. Encourages Competition and Growth
Due to outsourcing, organisations have many more options than before. They have more potential employees available, access to better IT outsourcing partners, and they can spend a lower amount of money to get specific tasks done.
Employees also have more options due to outsourcing. An employee working in India suddenly can be hired by companies all around the globe due to offshore software development companies, and those organisations can provide their employees with larger salaries, better benefits, and improved work conditions.
This allows companies and employees to get rid of unethical employees and managers. Those employees and organisations would have to work on themselves and improve their approach to the workplace.
Inefficient employees would have to get better training and a higher skill set, while organisations would need to improve their pay packages and their employees’ work environment.
Competition leads to growth, so overall, outsourcing will help make the market better for all, the employees and the employers. Overall, this will lead to better products and services for the customers.
Get Outsourced IT Services in the UK
If you’re looking to improve your organisation’s bottom line, then get in touch with Satya Infotech. In our 20 years of experience, we’ve worked with all types of organisations and helped them recover from their employee woes.
We’ll analyse your UK company’s needs and work with our team back in India to find and recruit the best possible employees for your needs. Take a look at all the offshore IT services we officer.
