Outsourcing Makes Sense During COVID Restrictions

The COVID pandemic has resulted in one of the worst economic crises the world has faced. Many small businesses closed down while others went through huge losses. With the pandemic dying down, normalcy is slowly returning but will still take a lot of time. One of the trends that became popular during the pandemic period was outsourcing.

Businessman talks with an outsourcing partner on the phone
photo credit: Karolina Grabowska / Pexels

Outsourcing refers to a business practice where a company outsources or transfers some of its work to another company. For example, the recruitment of employees is a process that could be outsourced to another company that specializes in recruitment. Another example would be phone answering, which can be outsourced to a phone answering service provider. It is not just those two processes but many other processes that can be outsourced to others.

While outsourcing has been a popular trend even before, it makes more sense in today’s COVID world. The COVID restrictions have affected many businesses. They can now be more focused on outsourcing supporting processes to competent companies.

We look at some benefits offered by outsourcing in today’s scenario. These benefits explain why it makes sense for companies to consider outsourcing some of their functions to professional companies.

Businesswoman outsourcing to Philippines
photo credit: Keren Levand / Unsplash

Benefits of Outsourcing

1. It allows companies to focus on their core work

The core work of a company is designing and producing its product, innovating it, and marketing it. Companies need to spend more time on their core work since it is the core function that would help them grow. A business would have many functions, including support functions. These functions are needed for the business but are not vital. Spending too much time on such functions can dilute the main focus of the business.

All or a few of such functions can be outsourced to other professional companies. This allows the company to spend more time on its core function, so it can work towards achieving its goals. Supporting functions like recruitment, payroll, inventory management, accounting, website management, telemarketing, etc., can be outsourced. It makes sense to outsource this work as it would be done by professionals and saves time that can be spent on other productive work.

2. Can get professional work done

Work done by professionals would always produce better results than that done by amateurs. When work is outsourced to a professional, a company is assured of getting the best results. A professional company that does outsourced work would be experienced in their field and also have the required expertise.

An outsourcing firm would employ skilled people who are good at their work. This ensures they can do their work in the most effective way possible. When work is outsourced to such a company, a business can be assured of getting the best results possible. Finding talented people to work on supporting functions can be difficult. Thanks to outsourcing, it is now possible to get the best and most talented people to work for the company.

3. Saves time and money

One of the biggest benefits of outsourcing is that it saves time and money for a company. If a company has to do operations like payroll and recruitment in-house, it needs to hire people and pay them every month. It also needs infrastructure, and the staff needs to be monitored. All this calls for a lot of time, effort, and money. Outsourcing can save all these. When supporting functions are outsourced to a professional company, it ensures the company doesn’t have to appoint employees or spend on their infrastructure.

Outsourcing saves time, which in today’s world translates to money. It also saves a lot of money, which needs to be spent on recruiting staff, training them, and offering them a monthly salary. The company that does outsourcing needs to be paid only for the work done. This saves a lot of money for the company, which can be used for core functions.

Call center outsourcing pros

4. Helps in risk reduction

We live in a world full of risks and uncertainties. Outsourcing can be very helpful in handling these risks. When work is outsourced to a professional company, they would be responsible for executing the work. They would also be responsible for managing any risks that crop up. Outsourcing thus has a direct impact on risk mitigation.

When outsourcing work is done by professionals, they would have the expertise needed to manage risks. When risks are reduced, it leads to stability for the company. This helps the company achieve its goals effectively.

5. Ensures business continuity

Business continuity is very important in today’s world. Work should not stop for any reason. Uncertainties like those posed by COVID can affect business continuity. This is where outsourcing can be helpful. When work is outsourced to a professional company, they will ensure that the work is completed on time. The outsourcing firm would have a team of people to take up the work.

Even if one or two of them are not available, there would be others ready to take up the work. This may not be possible if the work is done in-house since if a key person is absent, work may come to a standstill. Business continuity is a major benefit offered by outsourcing. This explains why it makes business sense for a company to outsource supporting functions to other companies.

6. Improved efficiency and customer delight

When supporting functions are outsourced to a professional firm, it ensures the work is done efficiently. When work is done in-house, it may be done by untrained people who need time to pick up skills. In the absence of experienced employees, efficiency can be compromised. This is where outsourcing is helpful. An outsourcing firm would have the best talent. This ensures improved efficiency.

When a company improves its efficiency and spend more time on its core functions, it has a direct impact on customer delight. Improved efficiency leads to customers being happy. Doing this constantly can achieve customer delight, which is what every company seeks.

Excellent customer service


When customers are delighted, it leads to enhanced business. A company can look forward to growth and achieving its goals when it delights its customers. This is a major reason for outsourcing.