Remember those good old days when people used to get into the restaurant without talking about restaurant policies. But now, the last-minute restaurant visits are no longer available. They look as surreal as populated multistorey corporate buildings, work in an office, or two hours commute.
According to a poll by Gallup, in April 2020, 60% of the employees worked remotely, and in 2021 the global remote working workforce is going to double as per the Reuters result. The work from home transformation made due to Covid-19 is going to set telework as a compulsory arrangement for several companies. As work from home is becoming a new trend, new opportunities for payroll outsourcing services are coming into action.
Hard time for IT outsourcing
Ten years ago, businesses were more focused on developing in-house teams rather than outsourcing. Due to this, the IT sector suffered lots of damage. Due to enhancing labor costs in traditional outsourcing or problems aligning external staff with company culture and goals, organizations initiated moving away from third-party suppliers. International IT outsourcing suffered a lot, but then Covid-19 raised.
Turning of the flow in favor of IT outsourcing
In the early days of the Covid-19 pandemic, things were not in favor of IT service providers because of the decline in upcoming projects, travel restrictions, and dip in revenue. Due to these businesses were releasing several external contractors to immediately fix the first wave of the pandemic, global IT outsourcing sector value reduced by 5%.
But when the companies realized the requirement for offering a sustainable response to the pandemic, the table again turned in favor of IT service suppliers. IT Outsourcing demand accelerated at a greater rate because organizations adopted the digital mode of work.
How Covid-19 pandemic has led to an increase in IT outsourcing?
Pandemic has reinforced IT outsourcing’s advantages and made companies more focused on outsourcing their IT needs to enhance productivity. Let’s check out how pandemic has worked as a favor for IT outsourcing:-
Covid-19 has enhanced digital adoption for several years
Covid-19 has enhanced companies’ digital transformation by an average of six years in only a few months. Pandemic has forced companies to rely on digital tools to collaborate online and have smooth communication. New customers’ demand has urged businesses to implement new technologies to offer more convenient, faster, and modern experiences.
95% of the IT professionals see their companies redefining their technology priorities due to the Covid-19 outbreak, and 63% of CEOs of fortune 500 companies have expected to enhance tech innovation in business. As companies are resetting strategies to implement modern tech solutions, they focus on using external support to achieve their goals faster. As per the NTT report, 45% of global companies plan to outsource more work in the next 18 months.
Contractors assist counterpart the impact on the revenue
Due to pandemic, organizations are more focused on saving more and getting the work done at a lower cost, therefore, Outsourcing payroll services. IT outsourcing becomes the best strategy for them. By hiring IT service suppliers and other offshore software developers, companies can eliminate costs incurred in office space and cut all the associated costs like property taxes, rent, security z cleaning, utilities, maintenance cost, and others.
Outsource service also helps reduce costs related to onboarding staff, recruiting, investing in training the employees, and managing employees and others’ requirements as flexible model outsourcing offers companies an opportunity to quickly bring experts as and when required without hiring them permanently.
Companies thinking about low productivity about remote work has eroded
The work from a home culture has helped overcome the significant concerns over remote work delivery, whether by outsourced or internal teams. Several studies have shown that virtual teams’ productivity is not affected a bit in various cases.
It has given light that companies can work at payroll outsourcing services without compromising their productivity. Businesses have turned back to scalable teams with services specifically for remote business support (with security policies, tech stacks, and standard compliance).
The outsourcing model is now transformed from cost reduction to accelerating innovation
Among the plethora of alters due to Covid-19, IT has become an integral part of strengthening the business and IT outsourcing companies’ quickly adapting these new dynamics and getting more focused to offer the best services at minimal cost affecting the productivity of the company.
The covid-19 pandemic has completely transformed the way companies work and make CEOs realize that high productivity can also be achieved from remote work. It has also enhanced IT outsourcing’s scope and has forced companies to outsource IT services to improve their growth. Companies looking for payroll outsourcing services can get in touch with FinAcc Global to enhance their productivity and revenue.