As businesses settle into the working world in the time of COVID-19, many of them are also trying to figure out the new rules of business. According to the ‘2020 Global Managed Services Report’ report by a technology firm NTT, many firms are expected to outsource more work. In fact, based on a survey of 1,250 executives in 29 countries including India, the report said that 45% organizations will outsource more than insource in the next 18 months, with 57% citing security risks as a key challenge of managing IT in-house.
Other findings of this survey include:
• Reducing security risks is not only the biggest challenge faced by IT teams globally, it’s the top reason for service provider consideration. Information technology services remain the most widely outsourced activity, reported by 57% of respondents. But overall, 70% outsource one or more inherently strategic activities:
o 53% outsource production or delivery of core products or services.
o 33% outsource sales & marketing (including third party distribution channels).
o 32% outsource innovation/R&D.
• 48% of business leaders already acknowledge a need to optimize the workplace environment.
• Technical expertise is the number one driver for selection of a service provider, with cloud infrastructure and security leading the demands.
• Security was also rated the most important factor for supporting the business case for using a service provider.
The two main reasons that organizations decide to outsource are to reduce costs and to have the ability to focus on core business goals and planning. But the research shows a shift in industry thinking. Outsourcing is not just about saving money anymore. It’s seen as a critical tool in innovation. A report by PwC also mentions that saving money is important, but so is access to talent, capabilities – and business flexibility.
This report also mentions the top reasons firms outsource:
• Lower costs (important or very important for 76% of respondents).
• Gain access to talent (70%).
• Farm out activities that others can do better (63%).
• Increase business model flexibility (56%).
Other reasons are also important:
• Improving customer relationships (42%).
• Developing new products or services/ market segment expansion (37% each).
• Geographic expansion (33%)
There are different forms of outsourcing services. Some of them are listed below.
• Face your fears: Small business owners and creatives are often confused about what outsourcing entails. They are afraid they will have to spend too much time describing their vision and assigning the projects, and that it will be too complicated to hand off the work. Or they are afraid that once they hand the work off, it won’t be prioritized or the contractor they work with will be flaky and not complete the job. While these are all valid concerns, if you carefully vet the contractor and if you are very clear about goals and expectations, the benefits outweigh the risk. Outsourcing gives businesses more time to plan or explore your creative side. More than that, while most of us are social distancing, there are still parts of your job that you can outsource to allow you to have more time to concentrate on the major tasks.
• Vet thoroughly: One of the biggest mistakes people make when outsourcing parts of their job is not vetting the people they plan to work with or hire. Some good ways to vet independent contractors include:
o Checking their website, portfolio, and social media. Ask yourself “Do you like their work, and can you picture them creating something for you? Do they have references and/or testimonials?”
o Assessing their responsiveness before you start working with them: Do they respond to your emails? Do they carefully answer your questions? Do they communicate clearly and kindly? If someone snaps at you or responds sluggishly, they might not be your perfect fit.
As a result of the SARS-CoV-2 virus and incidence of COVID-19, many communities have imposed shelter-in-place restrictions. These restrictions have forced numerous businesses deemed nonessential to close their offices. While revenues and cash collections may have slowed, business processes must continue. Bills must be paid, local taxes must be filed, and receivables must be billed and collected, and financial analysis is now more paramount than ever. Lotus Analytics is well equipped with outsourcing solutions that are positioned to keep financial operations running smoothly amid local restrictions. Lotus Analytics fills the big need for many companies at this time - virtual presence and capabilities, Artificial Intelligence, data management, technology infrastructure, and seamless support. Through a combination of the right and reliable technology solutions, we provide you with a depth of expertise and viable options that can better position your business to navigate opportunities even in a remote work environment.