Evolving Trends and 7 Reasons Why Outsourcing is a Great Tool in Post-Pandemic World

Resources 8 min read
In this article
Dec 29, 2020
Author Varsha

The covid crisis has had an omniscient impact on human life, business and everything in between. The rapid and cross-industry digitization of companies has been gaining significant momentum in the last decade, but the pandemic gives it the final pushover. The absence of an advanced digital infrastructure means that irrespective of an amazing product, your company will still trail behind. Consequently, most companies have digital transformation on their minds, as it would enable them to scale quickly and pivot fast when they sense a change is needed.

Gain The Digital Edge With Outsourcing 

To have a state-of-the-art or even a modest digital capability, a company needs a seasoned IT team to run the show. In countries like the US, Europe, and other regions, getting that team, in the long run, can be costly as well as managerially taxing, especially in such an uncertain and dynamic market. This is where IT outsourcing comes into the picture.

Today, Indian companies can deliver an entire portfolio of services, from short-term task-oriented engagement to long-term technology partnership, from simple website development to AI/ML projects. Thus they have a great role to play in not only saving cost but in giving the companies that Digital Edge that can help them survive and thrive in this dynamic post-pandemic market.

Pandemic, Outsourcing, and Indian IT Sector

Every few years, macroeconomic shocks disturb the markets, the COVID crisis perhaps unprecedented in human history, and thus highlights two important paradoxical lessons – Focus on Your Core Business and be Digital!

The Paradoxical Twins 

Prima facie, the irony may not be evident, but it is an elephant in the room. If you are going to be digital, you are going to spend on IT and technologies; such investments in tech as well as human resources will make the organization non-lean and prone to economic upheavals. To survive downturns, the organization needs to be lean, while going digital substantially, takes the organization away from being lean. Outsourcing is the most efficient solution to this paradox as it protects the organization from recruiting and managing their IT infrastructure, thus being lean and focusing on the core business, while simultaneously having the most advanced digital infrastructure and serving the customers better.  

“Outsourcing makes you an advanced digital organization that stays lean and focuses on core business.”

Outsourcing Advantages: Focus on Your Core Business

With the portfolio of such a vast variety of services, there are many reasons why SMEs must focus on core business and outsource their IT needs. Here are a few: 

  • Access to Top IT Talent
  • High-Quality Delivery
  • Optimized Staff
  • Shorter Time-to-market
  • Limited Risk
  • Maintain Leaner Organization 
  • Manage Cyclic Downturns Better

4 Main IT Outsourcing Services

4 Main IT Outsourcing Services

Though the kind of services may vary from company to company, there are 4 common IT outsourcing services offered by most of them.

  • Dedicated Teams : A project manager, software engineers, QA engineers, and other roles to meet project needs.
  • IT Staff Augmentation : On-demand talent addition to bridge any talent gaps 
  • End-to-End Software Development :  Full-cycle custom software development
  • Technology Partnership : A trusted company which can serve you in the long run

The Trends in IT Outsourcing 

Latest McKinsey report reveals the outsourcing trends, and the areas in which the trend is rising. Here is the summary:

  • Over 70% of companies are bullish on the outsourcing outlook
  • The priority areas in outsourcing are: Digitization and Cloud Transformation
  • The selection of the tech partner is most significantly on: Agility and Time Impact along with Differentiated propositions and capabilities.The Trends in IT Outsourcing

Indian IT Ecosystem – One of the Best in the World

The IT and BPM industry has shown remarkable growth even as the Indian economy slips into an economic slowdown. It is a major source of revenue and employment, and the industry is expected to expand at 8.4 percent in 2020 to reach a size of USD 192 billion.

The Portfolio of IT Services From Indian Companies

There are no services your organization can not have from Indian IT outsourcing companies, except where regulation prohibits such engagement. Take a look: 

  • Software development
  • Web development
  • Mobile development
  • Digital Transformation 
  • Technology Partnership
  • Network management
  • Quality Assurance (QA) and Testing
  • Technical support
  • Infrastructure management and support
  • Datacenter management
  • Cybersecurity, data backup, and recovery
  • Disaster recovery
  • Tech road mapping and planning

The Way Ahead

The pandemic clarifies once again that outsourcing is one of the pillars of resilience and sustainability. Outsourcing to Indian IT firms has a lot of advantages as it creates value in every dimension and is not just a simple cost advantage. 

Moving forward, it would be beneficial for startups and SMEs to outsource at least a part of their IT function to focus purely on the core business and let the IT experts extend their support. 

If you have any questions on outsourcing of IT services, get in touch with us!


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