What to expect in the future of Outsourcing after the Covid-19 Crisis?

The key learnings from the Covid-19 period include flaws of the traditional models of outsourcing. The need for transformation was entailed as the business eco system finds increased reliance on the digital as the new normal.

Remote work policies need no warrant for consideration. In fact, the Gartner Inc survey conducted on 127 company leaders reflected that 82% of the respondents agreed to continue the widespread experiment of work-from-home policies. As the offshore working concept is here to stay, it definitely affects outsourcing in India. This article focuses on the changes that we are foreseeing in the context of outsourcing arrangements after Covid-19.

  1. A Surge in the demand for outsourcing

Virtual services for administrative tasks are not new. A large number of industries were instrumental in offshore operations. The trend entails that the roles of an independent contractor are more likely to increase in the future. As more and more companies are in the disaster recovery mode, the emergence of establishing trustful communication between service providers and enterprises is expected. Also, it can be anticipated that small and medium sized enterprises will leverage the benefits of IT outsourcing and certain back office tasks.

  1. Adaptation to new technology will be essential

Decent computer skills will not be enough. However, an employee’s capability to adapt to the latest advancements of technology will give them the requisite competitive advantage in the future. Collaborations will be seen between companies and offshoring agencies that prove themselves to be the most technologically adapt entities. For instance, an individual who is capable to efficiently use the latest software will be preferred over those who can repetitive tasks with the expected vitality and competence.

  1. Long term collaborations are expected

Outsourcing was seen as a practice to save money on certain back office tasks and repetitive tasks. However, the new normal era of digitalism overlooks the lower-value and smaller tasks agenda. More and more companies will look at outsourcing as a long term business solution. It can be expected that a start-up company is offshoring the operations of an entire department.

  1. Increased collaboration of value networks

In the near future, more emphasis can be seen on the establishment of value networks. Companies will be involved in creating a value proposition for their customers by collaborating with outsourcing companies. Relationship networks are likely to be expected as more and more companies are trying to adapt to the changes. To strengthen the relationship with the service providers, enterprises will attempt to focus on nurturing multivendor value networks.

  1. Prominence will be given to the efficiency of the service providers

The outsourcing trends forecast that the future entails that companies will give importance to outcome-based outsourcing. To achieve maximum productivity, enterprises would prefer to hire independent contractors who can help the business to grow efficiently. With this value driven approach of companies, it can be expected that more and more organizations will be focusing on sharing the risk as well as the rewards with their service providers.

  1. The new approach for business development

Needless to say, outsourcing helps companies to save capital for growth. With the expected trend of a rise in the number of outsourcing services, business development is anticipated. For instance, when a company will outsource operational responsibilities like finance and human resources, it can save the cost of recruitment and training. The capital saved will be utilized for further business development agendas.


The global emergency revealed the significance of reliable outsourcing entities. As the global economy is recovering from the crisis, changes are inevitable for the service providers as well. However, companies leveraging the outsourcing expertise are likely to recover quickly. Likewise, such service providers are also experiencing a stronger recovery. Strong and sustained demand for outsourcing operations is foreseeable. Companies are expecting to leverage offshoring and outsourcing expertise to attain the efficiency they need to recover quickly. Additionally, it can be said that an established relationship between enterprises and service providers is envisaged in the future of business development.

How can we help?

Paragon Data Solutions is poised to render top notch quality outsourcing services. We are recognized as one of the fastest growing international outsourcing companies in India. We have strong relationships with start-ups as well as large sized enterprises in the United Kingdom, the United States and many more countries across the globe. We aim to portray our result oriented competency of Indian professionals. Our value-driven employees are well trained to ensure customer success. For more information, visit our website or contact our team members at info@paragondatasolutions.com