How Outsourcing Can Help Your Business In Turbulent Times?
May 20, 2020
C-level executives have a lot of tough decisions to make, especially today. Even companies that used to be fully in-house and have on-premise teams are rapidly changing the way they do business. More and more work is being outsourced in order to take advantage of the cost benefits, access to new technologies and innovations, flexibility, top-tier talent pool access, and increased speed of outsourcing.
In this article, we will:
- outline some common situations C-suite executives face
- demonstrate how outsourcing can be used as a beneficial tool
- how incorporating outsourcing into a company reorganization during tough times can be extremely helpful.
How Outsourcing Can Help You Navigate the Current Business Climate
The market is changing quickly, and C-suite executives need to make sure their organizations keep up. There are rising costs in some markets and decreasing ones in others. There have been inflationary increases in remuneration for developers’ work. Outsourcing to a lower-cost region can support executives in not only stopping that trend but also in decreasing their costs.
Some companies are facing what seems to be a good problem—a significant increase in the number of orders coming in. However, often this is paired with the challenge of rapidly scaling teams and delivering development faster. Luckily, with outsourcing your business can scale quickly using skilled experts who are well versed and trained in their craft. It can also increase the speed of your company’s projects.
Many businesses are struggling due to the reduction in market liquidity. This can cause massive financial problems for executives and forces businesses to optimize their costs. When businesses are in this scenario, outsourcing can be a lifeline. It allows executives to produce the same high-quality work they demand at a fraction of the cost.
During tumultuous times, new market opportunities emerge for startups and often new solutions have to be built quickly. With world-class developers working on your project, you can rest easy knowing high-quality work is being produced quickly for you.
Potential Routes of Action for Struggling Companies
When your company is really struggling, it is helpful to evaluate your options going forward and understand what you could potentially do. Here are four potential avenues to take when your business is facing a crisis:
It may sound funny, but it's no joke. Many times when executives are faced with seemingly insurmountable problems, they freeze and do nothing, make no changes, and hope that things will work themselves out. More often than not, this ends in disaster when larger market forces take over (see Blockbuster v. Netflix). When you make no changes as an executive, you face potential bankruptcy, dismissal, and a slowdown or complete shutdown of the company.
Cut Down on Employee Costs
Cutting down on employee costs can support a business greatly during a tumultuous time. One smart way to do this is by replacing high-cost internal teams with outsourced, low-cost, external teams. Today’s skilled and well versed outsource companies from places like Poland can provide world-class developers with high-level English language skills.
Implement Lean Innovation
Sometimes you have a great team but want to be able to do more. Many top executives are maintaining their current employment but moving new projects out of the house. Building out new projects in a lean way cuts down on costs and risks and can help your business thrive. As Peter Drucker says: “do what you do best and outsource the rest.”
Start Smart from the Ground Up
When you are dealing with an old, outdated, bureaucratic organization sometimes you need to start fresh. The best way to do this is to have new ventures, at their foundation, based on efficient, organized, and fast-acting teams. Doing so helps you save on personnel costs and other overhead from day 1 and gives you an exceptionally high degree of flexibility.
ULAM Series on Outsourcing
We are proud to announce a series of articles geared towards C-suite executives. The articles will go in-depth on outsourcing topics and cover subjects such as nearshoring vs. offshoring and how it can save your business in a crisis. These articles can help executives understand this term better and get to know which type of outsourcing suits their business needs best. Except the set of articles, an ebook will also be available.
If you want to learn more about outsourcing and how it can help your business, subscribe to receive a free informative ebook.