Reasons Why Pandemic Led To An Increase In IT Outsourcing for Startups


The Covid-19 pandemic has affected all of our lives in one or the other ways. It has also affected the way we do business and adapt to the new world order. Such a pandemic addresses unknown challenges, rules, and risks.

If not most of them, some business organizations are forced to ease up on their operations and core business activities. Cost-saving is the name of the game in such tough times.

But other industries are experiencing a growth in demand. These agencies are struggling to achieve the goals and customers’ demands.

IT outsourcing development uses external service providers to effectively deliver IT-enabled business processes and infrastructure solutions for business outcomes.

Companies like Tatvasoft, BairesDev, Addon Solutions, and ScienceSoft help to cut down development costs, allow you to focus on core business operations and handle certain IT functions.

For a better perspective, have a look at the IT outsourcing services mentioned below.

The software development outsourcing industry proved to be instrumental in the rapidly growing demand for IT services and products.

It allows you to manage the change in the working reality of the remote world. Industries are heading towards a cloud-based service model to keep up its pace with this demand.

In this article, we’re going to discuss how the IT outsourcing industry works and why businesses are heading towards outsourcing. So, without any further ado, let’s get started!

Pandemic Turned the Tide of IT Outsourcing

The surge in software development outsourcing is a result of a global pandemic. Businesses are now clubbing with offshore providers for technology services and office support.

The demand for IT outsourcing accelerated at a higher rate because businesses are adopting the digital mode of work.

It not only helps you to overcome challenges but also improves quality, variable capacity, increased focus on core competencies, increases flexibility, reduced cost, and better financial and non-financial performance which can later translate into an important competitive advantage.

To overcome productivity challenges and focus on core business operations, working with an experienced outsourcing team helps you streamline activities and add additional resources that may be lacking in-house.

Organizations are already set for digital adoption, IT services are demanding with intensity and the pandemic has paved the way for benefitting IT outsourcing services.

Employers’ Skepticism About Remote Teams Has Eroded

Employers were doubtful regarding hiring people who operated remotely due to shorter unrehearsed communication.

Nevertheless, this period has gone as businesses see their representatives make a great effort.

No matter where they’re located, productivity remains constant.  Employers’ doubt is disintegrating when it comes to remotely operated teams. Companies expect that productivity can be enhanced with an effective collaborative approach.

Employees notice that they usually get more prolific outside the confines of traditional work hours. This is because their lives don’t end when they clock out from work.

The tremendous workplace alteration and work from home culture supported overcome significant concerns over remote work delivery, whether by private or outsourced teams.

Various researches have shown that virtual teams’ productivity hasn’t changed a bit.

Constructors assist counterpart the impact on revenue

Due to the global pandemic, organizations are more focused on saving and getting the work done at a lower cost.

And, IT outsourcing is one of the viable cost resilience strategies for them. By hiring IT suppliers and other offshore software developers, businesses can avoid costs generated in office space and eliminate expenditures associated with rent, security cleaning, property taxes, maintenance cost, and much more.

You can also save costs related to training new employees, recruitment, onboarding staff, and managing employees when you partner with an outsourcing company.

They offer an opportunity to bring experienced experts when required without even hiring them permanently.

Outsourcing Model Transformed From Cost Reduction to Accelerating Innovation

Between the surplus of changes due to the Covid-19 pandemic, IT has become an essential part of extending the business and IT outsourcing companies’ swiftly adapting these innovative dynamics and getting more focused to extend the best services at least cost influencing the productivity of the company.

Outsourcing gears up for the Fourth Industrial Revolution

The technological environment has already accepted the Fourth Industrial Revolution for advancing technologies.

But the IT outsourcing community was still a step behind. It is still dependent on human intervention for the majority of work.

A new digital outsourcing model appeared to help outsourcing approaches with the Fourth Industrial Revolution.

Modern technologies in outsourcing allow both parties to become more effective, productive, flexible, and resilient while driving stable revenue.

Here are some of the technologies that are being incorporated into outsource services are:

Cloud Computing

Due to the global pandemic, businesses are taking outsourcing practices to the cloud. The cloud computing market is expected to reach $331 billion by the end of 2022.

It allows seamless collaboration and stimulates digital transformation. You’ll be surprised to know that industries are permanently enabling cloud infrastructure and its capabilities in outsourcing make the relationships more transparent.

5G Network

Extending fast broadcast networking, 5G practices outsourcing to the succeeding level in the Fourth Industrial Revolution.

It makes everything active in outsourcing relationships: management, communication, collaboration, data alteration, and much more.

Internet of Things

The Internet of things empowers service providers in the outsourcing community to offer reliable analytics for imminent preservation, optimize networking infrastructure, and also create BI penetrations.

Robotic Process Automation

A new digital model of outsourcing is taking shape and software bots are substituting a huge piece of the IT work.

Most of the repetitious tasks that don’t require human intervention are being done by bots. These AI-based bots are intelligent and not just make outsourcing more tech-savvy but also help save time, costs, and human efforts.


The Covid-19 pandemic led to an increase in IT outsourcing because companies are lacking behind in finding enough talent domestically.

Businesses are forced to revoke their outsourcing contracts with companies because they cannot trust their project during unknown times.

This is why the demand for IT outsourcing is increasing and readily getting adapted to the new dynamics.

They focus on building strategic partnerships with outsourcing service providers to ensure continuity and pay a premium amount for the skills that they need.

Read: How to use CRM database

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