The Coronavirus outbreak has spread havoc across the globe. Affecting 1,277,196 people around the world, governments are enforcing lockdowns as a preventative measure. As a result, the economies of all the countries are shaking as never before. With a sudden drop in industrial production and exports, the nations are entering a historic financial crisis. In the wake of current lockdown situations, numerous tech startups are now seeking to outsource their projects. Outsourcing can help tech startups in mitigating financial losses.
So What is Outsourcing?
It is hiring a third party outside the company to provide services. Furthermore, it includes services that were previously performed by the company’s employees. With the enforcement of social distancing, outsourcing will help save tech startups from drowning. It offers a multitude of benefits to these startups, most of them are as follows
Cuts Down Operational Costs:
Although outsourcing may be deployed as an emergency measure, it is yielding great financial benefits to companies too. There exists a vast difference in the work rates in different parts of the world. In many western countries, wages are far less, which makes it cost-effective. With truckloads of unfinished work, outsourcing is an ultimate bliss for startups in the corona breakdown situation.
Access To Skilled Professionals:
Outsourcing means several adept people having years of relevant experience will be doing the tasks for the local startups. This, in turn, means people with sound knowledge and understanding of the project domain will do the job. As a result, an enormous increase in efficiency productivity can be brought about via this act. Moreover, it also yields significant benefits to startups.
Risk Management:
Outsourcing can help tech startups gain immense benefits. It is because outsourcing manages risks in a more strategic yet conscientious manner. The third-party companies working on the outsourced project give special attention to the project. Their competency and expertise enable them to meticulously manage risks which could be ignored by the in house employees.
Healthy Competition:
Competition always drives humanity to achieve excellence. Firstly, the Outsourcing project develops a sense of competition in the in house employees. Secondly, It makes them work even hard to meet the set standards. Tech startups can capture the maximum advantage of this aspect. Hence, this enables them to achieve enhanced productivity and efficiency.
Working For 24 Hours In A Day:
With external third parties having different time zones, some Tech startups are gaining added benefits now. Stakeholders receive their tasks throughout the day. With more working hours comes greater efficiency, which means augmented chances of profits.
Outsourcing Offers Staffing Flexibility:
With the corona outbreak, even the highly profitable multinational companies are struggling. With lockdown and zero industrial output, company owners are finding it hard to pay their employees. As a result, Tech startups are now switching to outsourcing keep in view the uncertainty in demand for tasks. This allows them to quickly scale up or down their work comfortably without having to worry about the employees.
Customer Satisfaction Via Outsourcing:
Tech startup’s internal workforce takes client satisfaction for granted. On the other hand, Outsourcing third parties meet their clients’ satisfaction. Tech startups can take advantage of outsourcing by getting their hands on quality deliverables done on time. Most companies are losing their customers during this corona outbreak. Therefore, outsourcing can help startups gain clients via supreme quality, timely services.
Competitive Edge In Global Marketing:
Since outsourcing involves different expertise coming from different countries across the globe, tech startup yield benefits from this. They tend to gain exposure to the worldwide market, getting a chance to meet market standards of the world. The standards are not met if the employees working on a project come from the same place. This is because of the limited exchange of knowledge.
Given the above benefits, it won’t be biased of us to declare outsourcing as the best possible option. This could be a ray of hope for tech startups to survive the financial crisis. Numerous startups are asking their employees to work from home. On the other hand, many others have outsourced their projects and generating excellent profits.