COVID-19 – Its Impact on IT outsourcing!


COVID 19 outbreak can be rightly said as one of the worst health emergencies that have affected humanity in recent times. Unfortunately, a big part of the world is fighting this disease, and most of the activities are at a standstill.

The pandemic has affected almost every sector, and we have seen unprecedented change for the past few months. Companies are allowing their employees to work remotely. Businesses are turning to outsource to meet their requirements and minimize their damages. 

Challenges faced by businesses in the recent times

The biggest challenge is the inability to deal with the current situation. Employers are adjusting their targets created before the pandemic. Employees have to work from remote locations. Many can not adjust themselves to work from home because of several reasons. There are severe losses with significantly reduced productivity.

IT outsourcing and COVID 19

Many organizations are turning more towards outsourcing to seek their IT needs. As a result, there has been a steep increment in IT spending. The most likely cause is an urgent need to purchase IT equipment for the employees working remotely. Alternatively, they have chosen a cost-effective system by outsourcing their various software development programs, and IT needs.

Implications for IT outsourcing services

There will be several changes that most businesses have to face this year. Some of the predictions for IT sourcing companies are:

  • Deeper Engagement – Now companies are taking extra effort to ensure customers with an enhanced level of satisfaction. They are guaranteeing a better defined product with a high-quality solution, that too in shorter periods. 

This is all possible only when the IT department implements a continuous delivery platform with the latest technologies and top-notch development tools, customer workflows, analytics, and real-time tracking tools. All this is possible only through IT outsourcing companies.

  • Increase in IT outsourcing companies – Outsourcing IT services will become a more affordable service, especially for start-ups. Even all small and medium-sized businesses will incline more towards IT outsourcing, which will be the cheaper option available. Outsourcing will help companies to minimize the overall development costs and simultaneously make their services unique.

Companies will use services that will back up the IT operations, starting from app development and ending to system management by delegating their services to their third partner – A software outsourcing company.

  • Better risk management – The future is at risk in this course of the pandemic. The outsourcing companies will emerge with enhanced risk management services. This will include incident management, cyber threats, disaster recovery, business forecasts, and many other benefits. A software outsourcing company will develop a better-integrated framework to manage and control the post-pandemic world.

  • New contract modes – The standardized time money contracts will be outdated and are likely to transform into partnership-oriented models. The companies will offer the app development outcomes by sharing the profits based on the solutions with the outsourcing companies. This will result in better transparency, reduced costs, and increased speed.

From De-acceleration towards growth

We are hopeful for our future and know that the state of decline won’t last for long. As a result, IT services are expecting steep growth. Research has indicated many tendencies showing the change in development in the service market this year.

  • Demands for services are increasing and are expected to reach a record level
  • The total number of deals and overall size of transactions is rising, especially with third-party service providers
  • Consulting market is on the rise and is in much demand
  • More demand in cloud services

Practical digital transformation

Businesses are experiencing a new phase – digital transformation. They are moving from the experimentation phase to the development phase. This transition has resulted in a reduction of costs and the achievement of an immediate impact.

The Positive Impact of COVID 19

The positive effect which has affected most is IT Outsourcing. Now the world has started learning new ways of working. IT industries are in demand and are working tirelessly to fulfill the growing market demands. It is a fact that, considering the current situations, more and more companies have started opting for more services from IT outsourcing service providers. Many of the business organizations who have never even thought of consulting any IT outsourcing are partnering with them to stay in the market.

As businesses are going for remote working, therefore they require more cloud services. Moreover, more organizations have security concerns, and they want to adopt better safety measures for their IT department. Mainly related to the security of data, more IT outsourcing companies are in demand these days.


Present businesses have never experienced such an economic recession. More organizations are limiting their expenditure and downsizing their staff to face the current market challenge. A flexible business model is a need at the pandemic, and outsourcing the IT requirements is one of the practical solutions to meet your budget.

Leave a reply