How can offshoring help businesses survive during the pandemic
Photo by Alesia Kazantcevia
According to a new article by the Boston Consulting Group, 82% of their respondents, who are managers and business owners, saw a drop in their revenues, 78% are facing operational challenges and 68% have to cope with service provider problems. Meanwhile while facing lockdowns, stricter health policies, and a global economic recession. The global pandemic forced the acceleration of the digital transformation and pushed them to pivot their strategies to become resilient even during a crisis. In order to survive, many companies have created a stronger bond with their service providers. Companies have bargained with their suppliers, such as longer payment terms, price reductions, and more support for processes. More and more companies are looking for alternative solutions to save operational costs, thus considering offshore and outsource their business operations to a lower-cost destination as a cost-effective and productive way to survive the crisis.
One strong impact of offshoring on a business is the increase in productivity. Companies right now have to focus their time and energy on operations that matter and boost their company. They have to work double-time in order to bring value to their clients and customers, as well as strategizing effectively bouncing back from losses. Doubling down and improving in operations and processes that matter, will separate the winners and losers. Offshore outsourcing companies are here to help businesses improve their productivity and operations by sharing the workload. Companies can take on processes that are important but not essential to the main business operations. Thus allowing the company more time and resources allocated to these essential operations and processes.
Offshore outsourcing will become more valuable for businesses as companies find ways to reduce their expenses. One way offshore companies are able to reduce their client companies’ costs and expenses is that they charge lower service fees because of the cheaper operational costs in developing countries. These are especially effective for labor-intensive companies such as call centers, manufacturing companies, and even accounting firms. By outsourcing some of the accounting tasks to your offshore accountants, they can take care of payroll responsibilities, cost accounting, auditing, and even taxes so you can focus on providing effective financial advice to your clients. Offshoring can reduce onshore staffing costs and requirements, thus allowing less office space, and will save the firm on rent, electricity, and office expenses.
Due to travel restrictions, people are not able to move around as much. Governments now have implemented stricter policies to ensure safety and prevent the spread of the virus. People are also scared to travel, fearing they will contract the virus during the journey. Before the lockdown, many have returned to their hometowns or transferred to cheaper cities. Their primary reasons are; the remote work step up, internet services are accessible, and to conserve money. People now realized that they do not need to live near their offices. Many can work anywhere and still are productive and value-adding to their company. The shift to remote work has made the global village smaller, which makes the job pool bigger. Companies now can hire anyone from anywhere, even from another country. With offshore companies like UpStaff, firms can decrease their time looking for the best candidates because UpStaff is there to screen, interview and manage them. Making it less work for the companies, and more time focusing on important business processes.
The pandemic has made the global village smaller, due to the rapid adoption of digital, many are able to connect with anyone anywhere. Also, there are still uncertainties over the horizon, many don’t know when this global pandemic and recession will end. Businesses and firms are in survival mode, making sure they are investing in long-term solutions. One such solution that is here to stay is offshoring. Partnering with offshore companies will help increase the firm’s chances of being successful and unscathed during these dark times.
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