Why Are US Companies Now Rethinking Their Outsourcing Strategies?

  • April 23, 2020
  • 9 min
outsourcing strategy us companies

While numerous industries across the globe have been hit hard by the pandemic, IT operations are definitely expected to stay stable and afloat. Depending on the region, it might be more or less risky to outsource in the new reality.

Based on multiple interviews with senior management of huge multinational US and UK-based companies, BPO providers failed to continue their operations smoothly during the pandemic. Companies providing services like call centers, information technologies, and business process automation turned to be not entirely ready for the work-from-home arrangements. 

Meanwhile, some companies remain stable and continue working remotely with their staff as usual. Some UK corporations receiving business process outsourcing services report facing challenges working with offshore providers following the country’s lockdown on March 24 (as of today restrictions for IT workers have been reviewed).

Poor Internet connection for WFH-employees is among the key issues clients are experiencing when working with offshore teams now. Moreover, it’s a challenge for many remote employees to access databases while working remotely.

With most workers living in crowded housing, the Internet load grows significantly, and the weak broadband doesn’t allow a smooth work-from-home experience. Some companies have trouble supplying their employees with laptops for remote work.

Companies that experience connection troubles while their staff works in a work-from-home mode turn down all activities and offer their customers from the USA, the UK, Australia to hire temporary staff on-site or just put their businesses on hold for a while.

Maybe, it’s time to implement an AI solution?

ai solution outsourcing

While it’s hard to predict the exact impact the pandemic will have for both businesses and our everyday lives, key industry experts have come to the point that many companies will adopt automation and AI. Now it’s wrong to think that hiring an extra remote staff somewhere in India, Philippines, Bangladesh will allow you to relax and forget about the operations. Such changes could be forced by COVID-19, as innovation comes with a crisis.

We’ve discussed the key pros and cons of Artificial Intelligence before on our blog, but a certain benefit is that machines never get tired, sick, go on strikes, and are ready to work 24/7. 

So why not take example from the companies which managed to adopt AI-based services within weeks (!) because of the COVID-19 to stay competitive and get an enhancement for your product?

What we say here is that if you’re the one that has been planning to implement an AI solution for years before, now is the best time to do that.

Why hire a Ukraine-based company?

software developer ukraine

We know you’ve already gone through several articles praising each country. And here is not the place for advertising. A lot has been said and written in favor of having a Ukraine-based software development team, but there was no pandemic context. Now let’s see how you can reduce risks and get extra benefits for your business under the current circumstances. 

Infrastructure and Internet

Now it has become apparent that cultural proximity and infrastructure quality play a huge role when it comes to providing quality service. Every apartment in Ukraine has at least 100 Mb connection and additional 4G coverage as a backup plan. It is reported that Ukraine comes 31st by the number of people connected to the Internet.

With traffic shifting from offices to households, people are doing a lot more work online. Not just traffic for business purposes grows, but also entertainment, social interactions, and gaming. And all works fine, no issues.

It is common today that every household in Ukraine has a reliable connection used by all family members. Some even have several spots within one apartment to ensure error-free operations. This fact allows many IT workers (now it is estimated that about 50% of IT employees in Ukraine to work from home) to shift from their offices and stay safe, isolated, and continue working. Internet providers do their best to supply reliable, stable, and affordable Internet access to any house or apartment upon request.

Security

Sensitive projects with access to users’ information require additional regulation by customers, and it’s essential to make sure each client is aware their team is located outside of the office.

We make sure that employees have all the necessary infrastructure and tools in place to ensure no data and sensitive materials are exposed.

We’ve practiced remote work long before the pandemic and are now sure that our customers have no security concerns regarding their projects.

Management

Most companies are well-equipped for remote work in terms of infrastructure. The same applies to the remote management approach. With such a push from COVID-19, many companies are forced to establish new rules of engagement, task management, and communication.

Taking to account that Ukraine-based teams are remote by default for most customers, it’s not that hard to adapt. At the same time, we do our best to make sure our employees stay efficient while staying at home.

It’s obvious that common everyday interactions have to be replaced with software and robust communication. To keep the work performance and productivity of remote employees, we make sure each team applies the following standards:

  • High-quality network and Internet connection is a must;
  • Structured daily check-ins;
  • Additional technology tools for fast individual communication: Slack, Zoom, Skype, Jira, etc.)
  • Video-first culture to increase trust and reduce the time for meetings;
  • Regular individual progress reports;
  • No micromanagement;
  • Regular recommendations on reducing distractions and keeping to the work schedule;

Sum up

Executives of both huge multinational corporations and small early-stage startups were pushed to re-evaluate operating models. Many companies have found themselves unprepared for the challenges we face today in terms of agility and resilience. So now is the best time to review every aspect of your business to make it more competitive, distributive, and innovative. And we are ready to contribute to your business reconfiguration with the latest tech and approach. Let’s get the ball rolling?

 

Author

Roman Korzh
VP of Development

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