IMPACT OF COVID-19 ON OUTSOURCING INDUSTRIES:

Covid-19 this is the most buzzing and booming word in the world at the moment. There is a huge and several impacts of COVID-19 on domestic and international business across countries and sectors. The effect of the COVID-19 pandemic in human life is uncalculatable and it continues to go in the world. Outsourcing is one of the core features of development in the industrial sector on the world platform. It involves the transfer of various division of work or component of the industry to an external service provider. They could be a large segment of companies like the production site of plant or few people in the of share place.

Now let us talk about the impact of COVID-19 on Outsourcing companies:

Impact of COVID-19 on IT Outsourcing companies:

IT Outsourcing is one of the most flourishing fields in the world. IT Outsourcing is nothing new, it is continuously growing. More and more businesses have realized the importance of outsourcing and have consulted various Outsourcing companies for the services however amidst this tough situation pandemic, The IT Outsourcing industry has been affected as well. Covid-19 has impacted almost everything in the world including the IT Outsourcing industry however the impact is not as predictable or expected as it was supposed to be. In some place, the impact has been severe however in some areas the impact hasn’t much. It depends on a lot of factors. In this article, we will discuss a few things that have impacted the industry, both positively and negatively.

The Positive Impact:

First, let’s talk about the positive impact of IT outsourcing. The world is expecting a new way of working and therefore a lot of demand for the IT industry. IT industry has been working tirelessly to fulfil the demands of various businesses. In fact, many companies have started opting for more services providers considering the current situation also many businesses who have never consulted any IT Outsourcing firm might have partnered with a few Outsourcing partners during this time. Therefore, a company are partnering with IT service providers to strengthen their security and to stay away from cyber threats and attacks.

The Negative Impact:

One of the most noteworthy negative impacts is that COVID-19 has slow down everything. The lockdown has slowed the pace of the business. For many organizations, it wasn’t very easy to quickly adapt to a new way of working. The same has impacted the Outsourcing service provider as well. Some of the service providers might not be functional or if they were functional, they were not having 100% staffing. therefore, all this has surely impacted the success or the growth of the IT services provider. and also due to travel and transportation restriction in many countries, several IT service providers might not be able to work efficiently. They might not be able to get what do you want to operate fully. They might not be able to transport their products freely.

Impact on Business Process Outsourcing Industry:

BPO is a subset of outsourcing that involves the contracting of the operation and responsibilities of specific business-related functions, typically IT related to a third-party service provider. This process usually involves multi-years, lucrative contracts between the client formed and service provider form.

Often the employees of the service provider firm working for the client firm are incorporated in the client firm. Off sharing which is delegating work to a company based in another country is widely carried out by many global companies.

CONCLUSION:

Although COVID-19 is a big concern for most of the business around the globe, it has a significant impact on the Outsourcing industry. these industries act as helping hands for Major corporate and depending on the proper functioning of these corporations. If the primary industries are not getting in a business, they would not be able to utilize the Outsourcing services. It is leading to the shutting down of many Outsourcing industries around the globe. The other factors like lockdown and travel restriction are also playing a vital role in derailing the business that solely depends on it.

Like the logistics industry cannot survive with the proper transportation. Similarly, IT project is also on hold or even cancelled which is leading to an alarming situation of downsizing of industry. Human resource is deficient in some areas as well as because of luck down.

In a nutshell, time is hard for the survival of companies across the globe. Everyone needs to understand the financial situation or scenario and show some pause some patience. It is a difficult time but it is temporary.