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How can Outsourcing relieve the pandemic economic effect

Peter Howard Wertheim and Dayse Abrantes – International Journalists
peter.howard@thebridge.social / dayse.abrantes@thebridge.social

Outsourcing is equivalent to professional activities undertaken by service providers, when organizations transfer the responsibility of carrying out tasks to a person or entity, such as startup. Outsourcing is growing exponentially despite COVID-19.

Benefits of Outsourcing 

In a scenario where most of the employees are in home office, some leaders are having their first experience in the remote management of their teams and, with business expectations reviewed almost daily, in the face of news, outsourcing offers security, structure and reliability.

Thus, it is exactly what the company needs to ensure that the organization is active, focused on the progress of activities, development and quality of life of employees, favoring the engagement of the team without losing sight of the results.


Other advantages of task outsourcing is that business owners can delegate some jobs and save time and costs. It is much more economical for the business to outsource an activity that is not part of its expertise, instead of assembling an entire team, structure and processes it to perform this task. More benefits:

Increased Productivity and Quality of Services

An entrepreneur who runs an e-commerce company does not just sell products online. You can spend a lot of your time creating paid social ads, writing content for your blog, taking and editing product photos, and fulfilling orders.

Although all of these tasks are important, they are not directly linked to the main function of the business (creating and selling products). Outsourcing some (or all) of these tasks can significantly shorten your task list – and that means you can get back to running your business.

Several reports, such as the one published by Global Industry Analysts, point to a good future scenario for the Outsourcing industry.

Skilled and Frequently Updated Professionals

According to Bernardo Carvalho Wertheim, founder and CEO of the Startup The Bridge, headquartered in Santiago, Chile

“We create value by connecting the main companies and the best digital talents in the market through our technology and a team of first class recruiters. One of the tools used to boost our startup is outsourcing. ” 

All The Bridge employees have been working from home since before the pandemic. In addition to Chile, they are present in Peru, Colombia, Brazil (São Paulo), London, Portugal and Mexico.

Improvement in the Levels of Services Provided

By offering to employees the option of working remotely, employers can explore more possibilities when hiring. It can be difficult to find quality talent in certain geographic areas, but expanding the search to include remote workers outside a limited market can help employers to find the perfect candidate.

“The important thing about Outsourcing or global sourcing is that it becomes a very powerful tool for leveraging talent, improving productivity and reducing work cycles.”

Azim Premji, President of Wipro Limited

For employers, moving to a remote workforce can bring financial benefits by reducing overhead and office expenses. These savings are the direct result of high levels of productivity, lower real estate costs and reduced turnover rates.

Most companies face this challenge in providing technology and IT outsourcing that includes designers, UX (User Experience) and digital developers. The increase in COVID-19 cases worldwide has led many companies to make their employees work from home (home office). And if you are following the daily news, you know that for a long time it will be like this.


Outsourcing Cost Reduction

Outsourcing’s main objective is to reduce costs. One understands that the greatest advantages of outsourcing happens when it occurs in the middle activities, and not in the companies’ core activities. In other words, in areas that have no direct, but indirect relationship with the core business, which is the core of the company’s value generation.

The organization becomes leaner, with fewer sectors and has a smaller organization chart. The great advantage derived of this reality is the increase in the agility of decision-making and a reduction in bureaucracy.

According to FIA, thanks to the optimized structure, the company also becomes more flexible, being able to adapt more easily to changes in the market and on consumer behavior.

Outsourcing can accelerate innovation

Outsourcing as an industry has been around for quite some time, as companies have always looked for cost-efficient ways to manage certain business processes off-site.

Among the most common services outsourced are customer support, accounting, recruitment, manufacturing, and many more technical roles that can be a time and resource obstacle for growing companies.

By granting these functions to a third-party service provider, you can focus on managing and optimizing the core areas of your business.

In addition to enhancing your concentration on internal specialization, outsourcing can also be a great source of overhead reduction for your company.

“The need for access to talent will lead companies to think about Outsourcing as a way to accelerate innovation and gain competitive advantage. This will lead to a transformation of the outsourcing profession, where innovation will be valued much more than pure cost savings.”

Jagdish Dalal, CEO – Corporate Affairs and Mr. Vice President – Legal & Secretarial at Arvind Limited.

Typically, outsourcing partners will provide offsite services at a lower cost than if you were to build an internal team due to the varying economic benefits that come with an offshore workforce.

Because of the benefits of outsourcing, many companies are finding that it’s an attractive option that allows their businesses to grow.

Outsourcing isn’t only available to big companies. Clutch Group, in Washington, DC, show that more than one-third of small companies (37%) currently outsource a business process, and more than half (52%) plan to outsource.


Clutch has interviewed 529 small companies owners and managers to understand their plans and outsourcing preferences. Whatever your business goal is, it’s important to be able to find the right partner for outsourcing customer service, IT support or outsourcing recruitment processes.

Outsourcing: Not everything is a bed of roses

Outsourcing demands some special care:

You lose part of the control

As expected, when working with outside agencies or freelancers, you lose control of how these tasks are monitored and performed. As long as the manager knows and trusts the provider, this shouldn’t be a big problem. However, care must be taken in this choice.

Business specificity

Another point of attention is that even though they have expertise in the technology area, some IT suppliers do not have the same level of knowledge of their customers’ business. This can cause problems when planning and executing projects, causing delays, breaking expectations, and, who knows, extra expenses.

Expectations alignment

A major disadvantage of outsourcing specific tasks is the risk of the partner marching in a different pace. As a result, it can be difficult to synchronize schedules to ensure that users receive what they promised on a reliable schedule.

You may lose focus

Since many outsourcing agencies tend to serve multiple clients at any time, certain demands may not be properly focused. Depending on the outsourced processes, this lack of focus can harm the company.

Quality control can decrease

Outsourcing companies and some freelancers can often be motivated only by profit, rather than by doing a good job. This means that the demands can be answered quickly, but it may not have the expected quality standard.

After all, is outsourcing the future?

To meet market requirements and remain competitive, it is essential that managers look for the best optimization and business performance strategies.

Outsourcing offers this possibility because it can add more functions to a company, such as Accounting and Tax, Human Resources, Logistics, Finance, and Technology.

Meet the Author

Peter Howard Wertheim & Dayse Abrantes - International Journalists

peter.howard@thebridge.social dayse.abrantes@thebridge.social International Journalists


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