The COVID-19 outbreak is a human tragedy and has a growing impact on the global economy. The financial and economic implications could be worse than those of the dot-com crash of 2000, which was followed in quick succession by the 9/11 terrorist attacks and then eight years later, the onset of the global financial crisis (GFC). It is forcing companies to explore how they can survive while grappling with crises of mammoth proportions. In the event of a crisis, immediate action is what’s required to protect mid- and long-term results.
Outsourcing certain business functions is a solution that can help you with cost cutting while enabling you to be more efficient and productive. Outsourcing during a recession may seem like a bad direction for your employees. However, it could help you and them weather the economic downturn. Recession forces many changes within a business: changes felt by upper management and across your entire workforce. By outsourcing, you’re able to gain flexibility and efficiencies, and you’re not tied to the overhead burden of hiring an employee.
Advantages Of Outsourcing
An important benefit of outsourcing is that it’s cost effective. Outsourcing your part-time needs can help you reduce costs and also help retain full time employees who are more valuable to the company.
Benefits for employees
Other than getting fired, loss of benefits is a serious concern for employees. So, if you outsource certain departments ,you can save up on the money since you do not have to pay them the benefits and offer them to your personnel instead.
Improved efficiency in terms of productivity
Firing of employees often follows a recession and overburdens the remaining employees with low value tasks which hamper their productivity and creativity. Outsourcing these low value tasks is a good solution, especially in startups or mid-sized organizations.
Helps eliminate over-work for employees:
Firing after recession leads to over workload as we discussed above. This is catalytic for work-stress, which obviously diminishes the potential of a perfectly capable employee. Hence, outsourcing your needs is your ultimate weapon against stress, unproductivity, and all things alike disturbing the smooth flow of companies.
Companies That Have Benefitted From Outsourcing
It is natural to seek examples of industry giants who have succeeded at an endeavor before undertaking it for yourself. So let’s have a look at some renowned organizations who took shelter under outsourcing when the recessionary economy was forcing them to lose money.
If you take a look at the back of your iPhone, iPad, or any Apple product you have, you’ll see ‘Assembled in China’. Apple is famously known to outsource its manufacturing to China and it continued to do so during the 2008 recession. It also works with at least five India-based IT vendors — including four large firms and one small firm. Apple engages with Indian IT players for application development & maintenance, business intelligence & data-warehousing, data analytics applications, enterprise application integration & ERP implementation.
Indian firms were among the biggest beneficiaries in the last two recessions as US companies outsourced work offshore for costs, forcing their global rivals such as IBM and Capgemini to replicate their model by ramping up their workforce significantly in India.
In 2008, IBM signed various outsourcing contracts – a fact that can put many minds at ease.
To bring out the newer and better versions of products and offerings into the market, the clear need for comprehensive research at every stage of the business has increased manifold.
Today, business research works with an omnichannel objective and has become multi-dimensional. To narrow in on the best approach, a lot of expertise, skilled resources, analysis, and strategy has to be taken into consideration. In most cases and for most businesses, in-house employees may not have the time, specialized skills, or the objectivity needed to handle the ever-changing research needs of the business.
Opting for outsourcing research services is one of the important factors that can ensure significant financial and business gains for an organization. Outsourcing your research is no longer just a way of cutting costs. For most businesses, it is now a strategic management technique.
With outsourced research, you could have a remote team working around the clock to find the answers you need. Outsourced employees are not limited by typical business days, and they may be located on the other side of the world- in which case you might wake up to their finished work.
While outsourcing research can maximize productivity, it can also cut expenses in a variety of ways. Choosing to work with an outsourced company can not only reduce labor costs, but it can also control capital costs. Skilled workers are located all over the world, and many reside in places with lower costs of living, thus offering lower prices for their services.
For instance, the popular messaging system Whatsapp outsourced their software development to developers in Russia. Outsourcing helped them to cut the high costs associated with being a silicon-valley located company, and eventually become one of the top 20 downloaded apps in the Apple App Store.
If outsourcing secondary research can reduce your expenses, increase your efficiency, and thereby improve your bottom line, why wouldn’t you consider outsourcing your business’s research and analysis?
Brainsfeed is a research platform that provides businesses with secondary research solutions by connecting them with freelance secondary researchers who conduct comprehensive research on a specific topic, product, or service.