As the global pandemic hit the world with a disruptive wave, we’re quite sure that almost everyone is too stressed about their jobs. There might be infinite questions bothering your minds in this fickle scenario like what changes have occurred in the outsourcing industry, whether it is wise to outsource this year or not, are the prevalent outsourcing practices sufficient and what not. If you are being in the IT industry or belong to some organization that requires outsourcing IT services, then these questions must be a pain in the brain. Surely this pandemic has brought everything to a steady standstill, so here we are with an answer to all the nagging questions in your mind.
More Emphasis is Being Paid On Building Relationship Networks
Building value networks has become the utmost priority for many industries in 2020, and by the end of this year, there would definitely be a shift from the traditional value chain to a more flexible value chain. By the way, what is a value chain in the outsourcing industry?
Value chains or networks can be defined as the connections you build in order to create value for both your company and its processes. In the outsourcing industry, it means building a network of meaningful contracts and relationships with outsourcing companies in one’s own country, India, Ukraine, or China to add value to the outsourced services.
Different types of relationship networks one could expect to see are –
- Purchasing Network – where two or more firms come together in order to leverage the outsourced services and save costs.
- Service Provider Network – where different outsourcing service providers come together in order to meet the intricate challenges and demands.
There might as well be single enterprises who look towards hiring remote developers from different service providers so as to improve their outcome.
Outcome-based contracting will not only reduce the risks for the outsourcing buyers but also encourage the service providers by sharing rewards. As per a report provided by the GSA, 92% of companies that outsource development to India or any other evolving economies have realized the importance of this concept of outcome-based contracting.
Service providers would be approached as service integrators by companies who will not just complete the projects but will also share the rewards and risks in order to gain a more value-driven delivery. Companies will benefit from such contracts as it would gain them an in-depth assessment of the possibility of any future outsourcing relations with the service providers.
Some Useful Approaches for a Post-Pandemic Transition
As the pandemic has reached us unto an unprecedented situation, managing offshore teams for businesses could be quite challenging. With the majority of people shifting their workstations to their homes, there has been a conflux around setting up VPNs and security of projects. Here are some useful approaches that business leaders could follow in order to emerge even stronger after the epidemic in regards to their outsourcing practices –
- Install real-time dashboards so as to monitor the work being done at the outsourced company and keep track of each metric.
- In order to ensure smooth work in case a similarly disruptive situation occurs in the future, you could include in the outsourcing contract, disaster mitigation strategies.
- Reduce the human capacity by adopting a business automation approach, which will eventually shift your focus towards building an advanced working model based on upcoming technologies.
- Reallocate resources to projects which are of high priority and shift to extremely important business projects.
- Work towards making information security regarding intellectual property theft as a serious concern.
- Consider cloud migration as the latest norm in the future.
In this situation of global apocalypse, ABuzzCompany introducing all-new work culture and tactics to overpower the situation, i.e., dimmed due to the new normal. As in the current scenario, outsourcing practices would prove to be more meaningful and beneficial, we at ABC move forward to avail our clients with all-upgraded and useful approaches to bring their businesses to new heights where COVID-19 may never reach.