Why Companies Prefer Offshore IT Services During COVID-19
COVID-19 is a global humanitarian challenge of a massive scale that has tormented communities, societies, and businesses. Not one but many organizations are scrambling to protect their employees, clients, and most importantly, their revenue. In challenging times like these, most companies are offshoring their IT services to leverage from the extensive currency gaps.
In this blog post, we will explore why companies prefer offshore IT services during COVID-19 and will these organizations ever consider domestic hiring again.
Outsourcing IT Services – Is it a Deal Maker or a Breaker?
Outsourcing IT services can help businesses build immunities against unprecedented situations such as natural disasters, but how will it affect an organization’s performance due to time differences and other factors?
1. Timely Delivery
Geographic dispersion is the most effective risk management strategy. However, time is of the essence for every organization.
Outsourcing IT services might seem like a bad idea if you think your partner IT organization will be sleeping during your business hours, but that’s not quite true. Since the other side of the world follows the same business ethics as yours, they will be available during your business hours regardless of what time they have on their side.
Most companies that accept work from foreign nations abide by their time and schedule multiple work shifts for workload management.
2. Promote Growth
A company’s IT operations tend to expand in times of rapid growth and shrink after losing business. This becomes an obstacle in growth because the lack of business forces every organization to reduce head-count. Instead of trimming down your staff and losing your workforce, offshore IT services can help.
The decreased expense due to currency difference helps businesses sustain their normal functions and even develop growth plans.
3. Focus on Core Business
Every organization harbors a set of skills that help them become the best in its niche. However, with time, responsibilities increase, and new functioning departments emerge. Managing multiple departments means losing focus on the core business activities. Outsourcing most functions, including IT, can prove fruitful in the long run as decreased responsibilities allow more time to invest in core functions.
4. Easy Access to Latest Technology
Companies need to speed up their digital transformation to be flexible during a crisis like COVID-19. Massachusetts Institute of Technology revealed that companies that have digitally matured are 26% more profitable than those that aren’t.
Outsourcing your IT can give you easy access to the latest technology your partner company has. For example, the provider might have the latest web and mobile development tool or harbor more creative ideas than your existing staff. The opportunities are endless, and you won’t know until you explore them yourself.
5. Cost Optimization
One of the top reasons organizations preferred outsourcing during COVID-19 was cost optimization. Aside from your operational expense, you also have to worry about your employee’s salaries. Moreover, plenty of services can be performed at better rates in foreign countries. Web and mobile development is the finest example that costs a fortune in some countries yet dimes in others.
Will Companies Ever Prefer Domestic Employees?
Regardless of how much you outsource your business, there is always a need for someone to oversee your business by being physically present. Offshore companies are exquisite in IT, but other business roles haven’t matured enough to be outsourced yet.
The Bottom Line
Outsourcing IT services might seem like a golden opportunity; however, finding the right partner can be challenging. Besides cost optimization, your partner IT organization needs to be responsible, professional, and time-efficient. Teqnovos is a trust-worthy web and mobile development company where you can outsource your IT functions. Their long list of satisfied international clients proves their worthiness, and their portfolio is solid with exceptional work. If you are looking to grow your business and develop international ties, Teqnovos is a good place to start.