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Why Are Businesses Inclining Towards Outsourcing


The last 2 years have been quite adventurous in terms of business. They have brutally put the gaps and holes in preparedness and management out on the table. When some saw their businesses come to a standstill while others saw their sales decreasing.No one could foresee what the pandemic had in store for business industries across all verticals.

Outsourcing had been a variable resident of the business realm so far. We have previously been talking about How Can Outsourcing Help A Business, How Does Outsourcing Reduce Cost, and 8 Reasons To Go For Outsourcing. However, the post-pandemic era witnessed a stark increase in the practice.

Curious how Outsourcing settled permanently in the business empire?

Let us tell you, why:

1. Increased Outsourcing to MSPs

With a shift to digital, cyber attacks increased too. 83% of the leaders unsatisfied with their security services plan on shifting their securities from in-house to a managed service provider.

Business leaders now wish for all levels of their organization’s security systems to improve including employee training, cloud, disaster management, etc.

Half of them, even plan on investing over 40% of their budget in improving cybersecurity through the practice of outsourcing. They also plan on purchasing threat intelligence, bot detection, etc. from MSPs.

2. Business continuity

One thing every organization wished to achieve after 2020 was business continuity. Their business needed remodeling, and restructuring toward the “new normal” which was obviously touted to be financially risky. With or without provisions and policy changes, every business firm was obligated to continue outsourcing new and existing relationships. The Businesses have now started their search for outsourcing contracts that include provisions for global, natural, and biological uncertainties.

3. The Fourth Industrial Revolution

The Fourth Industrial Revolution had already been in terms of advancing technologies. But the outsourcing practice still relied on humans for the majority of work.

When a majority of businesses have now started embracing the technological revolution, outsourcers are becoming more flexible, efficient, and productive. Technologies like Cloud Computing and Robotic Press Automation among others can be seen being incorporated into the services.

4. Sustainable outsourcing

It might come as a surprise to people but businesses too require sustainability i.e. the satisfaction of present needs without hampering or compromising future ones.

Businesses today are looking forward to forming more such practices in outsourcing to have long-term relationships. The firms are now working towards forming strategic partnerships and value networks with the outsourcing service providers to further ensure continuity.

These partnerships and relationships focus not just on the current project but on a greater and long-term partnership. Two firms, the outsourcing service provider and the client, are expected under this to come together and form a valuable relationship. It would thus no longer be a short-term solution.

5. Cost reduction is again a top reason to outsource

Outsourcing at its core started as a way to reduce operational costs. However, time, factors like quality, talent shortage, speed, etc., became the driving force for it.

Currently, Businesses are now choosing their outsourcing partner purely based on the extent of the cost reduction they foster. This is mainly because of the economic uncertainty caused by COVID.

In this age, flexibility, and agility are indeed the top concerns people need to face. However, cost holds the very power of being able to make or break an outsourcing relationship. The final decision to hand in the provisional contract is once again driven by the costs, no matter how much weightage one gives to the other benefits.

To learn more about how feasible outsourcing can be in the reduction of costs, click here.


The world anticipated an entirely new digital outsourcing model to gain popularity but nature had other plans. The uncertainty that erupted, pushed things further away and soon new trends in the outsourcing industry came flooding and gushing toward the shore as waves.

While the industry was busy embracing new disruptive technologies like Artificial Intelligence, cloud enablement, etc. Outsourcing providers used this time in using the same to enable their clients to digitally transform their outlook and look for more in the methodology. New contracts seem to be revolving around cybersecurity and other important emerging factors that test the company’s preparedness and encourage it towards delivering projects regardless of any other lockdown situation in the future.

Now that you know how the entire sector of the Business Industry is marching towards Outsourcing; you should too!

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