The COVID-19 crisis has impacted almost every industry in the world with many operational and financial changes and challenges. Although it is an ongoing issue, we are beginning to see long lasting business strategies emerge as we continue to invest in resiliency and adaptability.
A remote work culture has become ingrained within companies and it is because of this that accessing global talent by nearshoring has never made more sense. Nearshoring helps companies of all sizes save on costs, hedge their risks, and integrate new capabilities and fresh thinking to improve quality and efficiency.
When it comes to cost-cutting, most companies tend to target their IT applications as they can often be viewed as less significant as other business resources. Yet, in today’s digital world, IT is a crucial element to the successes and safety of any business and therefore, outsourcing your IT services can be a cost-effective solution. According to research, the areas of business most likely to be outsourced are IT (37%) and marketing (32%) (Ismail,2020).
Outsourcing is a business strategy that involves reaching out to external vendors to carry out certain business functions or operations on your company’s behalf. Traditionally, people carry out this strategy overseas, however, increasing amounts have begun to take the more convenient and reliant route, which involves nearshoring these operations to a neighboring country. The benefits are the same, and you will still experience reduced costs, especially if the exchange rate is favorable.
Some benefits include:
- Cost Savings.
- Pay for what you need when you need it.
- Resources are allocated quickly upon request.
- Access to the latest technology.
- Ability to focus on other business areas.
- Save money and brainpower by allowing your employees to focus on more important matters.
- Discover new and talented resources.
- Hire people with unique skills and expertise, potentially those that your company lacks.
- Easy and Seamless Integration
- Similarities between laws, language, culture, and organizational behavior.
- Geographic proximity.
- Reduced travel costs + commute times.
- Faster information exchange.
While the costs of in-house IT operations can be daunting, it is recommended that those who have limited IT knowledge should consider outsourcing IT tasks to subject matter experts; allowing you to reinvest in your company and drive business transformation.
The key lesson for businesses to learn from other industries is that you need to be able to adapt quickly. Changes are happening overnight and there is no time for long deliberations and discussions. Those who are prepared for big shifts in the corporate landscape and global economy will continue to come out on top.
Think proactively not reactively – nearshore your IT services today with New Value Solutions and be prepared for what the future brings!
“Businesses focus on outsourcing as a Covid-19 survival strategy”. Nick Ismail. (2020).