With the spectre of the financial crisis that accompanies the coronavirus health crisis, companies must find concrete and quick solutions to put in place to get out of this situation without losses. Outsourcing is a perfectly adapted response, however, it is essential for decision makers to overcome the moral dilemma that can accompany outsourcing. One example is employee loyalty. More than ever, there is an urgent need to combine and optimise internal and external resources. It all starts internally, thanks to a controlled organisation.
Why is outsourcing an added value for companies?
Offshore outsourcing providers began to emerge in the late 1990s. On the agenda were effective but inexpensive solutions and resources capable of dealing with the so-called “Year 2000 bug” threat. Since then, outsourcing has rapidly transformed. It has grown to offer a highly qualified and multilingual workforce which is able to adapt to the foreign cultures of their customers. Today, these providers are able to offer mature and quality project management processes that match and even surpass the standards of what can be offered internally.
Today, outsourcing is gaining and bringing even more in terms of value. Among the world leaders is Mauritius, which has succeeded in supporting many Western companies in their development efforts through outsourcing.
Outsourcing is a specialty
Outsourcing is the most appropriate solution for a company that wants to keep growing despite the current health crisis. However, it is not a question for the company to transform its employees who are working from home into outsourced agents. Outsourcing is a strategy in its own right, but in which the employees of the client company have a major role to play.
By using outsourcing, the client company makes the choice to adopt a new organisational model which is balanced by a global workforce pool. So it’s time to ask yourself a question: in the era of outsourcing and the financial crisis, are your employees ready to become an essential asset?
3 elements to consider for a smooth transition to outsourcing
Finding solutions to reduce costs
The current economic slowdown is a major concern for most companies around the world. More than ever, the trend is to protect profit margins through cost reductions. Some companies are planning to lay off their employees or divest their loss-making assets.
To avoid this, many companies plan, or are in the process, to outsource certain services, such as satisfaction surveys to assess the quality of their services, remote secretary services, teleprospecting or telemarketing. This reflex will allow them to reduce their costs and to refocus on their core business, thus actively participating in the development of their organization, even in the context of health crisis.
It is a fact, cost reduction has always been one of the main reasons for outsourcing and this should not change despite the current and future complex conditions. As a result, outsourcing contracts will, in the very short term, offer customized, adapted cost control mechanisms. For this, as a customer, you will have to discuss with your provider. Together, you will be able to accurately determine the services to be outsourced and the applicable rates.
For cost-effective outsourcing, take the time to build a win-win contract, both for your company and your provider. With a fully implemented cost control mechanism, you will be able to build a sustainable partnership.
Evolve your teams
Whether it is human resources or marketing, it’s time to evolve your internal teams, be it managerial or technical. This action will have beneficial consequences once your services are outsourced, because the more an employee occupies an important place in the organisational chart, the more efficient and loyal he will be to the company.
By increasing their skills, your employees will also be able to contribute significantly to your outsourcing project.
A flexible outsourcing contract
In the face of the current economic uncertainties, it is essential for any company to react quickly to changing market conditions. In the context of outsourcing, it is important to have a personalized contract, therefore one that is flexible. This flexibility will make it possible to adapt to any changes that may result, for example, from restructuring or withdrawal of investors or from changes in the volume of services, the geographical scope of services, etc.
To achieve the writing of a contract in your favour, do not hesitate to stipulate that the provider will have to continue to provide its services even if your company transfers an entity under the same conditions and for a minimum period after the transfer.
A flexible contract must at all costs avoid strict contractual clauses and foster a clear and workable change control mechanism. Thus, both parties will be able to agree and implement any changes quickly.
Each issue must be carefully considered. This will allow your company to determine whether to outsource one or more services in the current economic climate. Involve your financial, technical and legal teams at the beginning of the negotiation process with your provider. Allow enough time to write a clear and unambiguous contract. Outsourcing should not be seen as a lifeline, but as a winning strategy. The Covid-19 health crisis is no doubt an opportunity for your company to bounce back intelligently and efficiently, whereas the competition will find it difficult to regain a solid place in the market.