The primary drivers of outsourcing have changed multiple times over the course of the past century. But we can all agree 2020 made it abundantly clear why this business strategy continues to stay.

When the World Health Organization announced a health crisis is going to affect all parts of the globe, many small businesses panicked. A survey conducted this year in light of COVID-19 shows how financially fragile small businesses will become because of safety protocols that prohibit gatherings and require isolation.

Yet several businesses have survived until the end of 2020. Granted, some are barely holding out against the financial and operational constraints the pandemic has brought. But the situation brings to the fore just how vital it is for companies to be flexible. And for a company to be flexible, they need to easily scale up their resources without biting off more than they can chew.

In this article, we discuss the top seven drivers of outsourcing during the very dark time that is 2020. These reasons, among others, will shed light on the importance of contracting out work — especially for companies that want to make the most out of their time, money, and growth.

Image credits to Pixabay

The 7 Drivers of Outsourcing in 2020

1st Driver of Outsourcing: The Necessity to Work Virtually

In the midst of a pandemic, companies have become reliant on a virtual work setup to keep their business afloat. And your company has probably needed to adjust to the world’s current state, too. Because the new way of conducting business requires a hybrid remote-office model, it’s a small logical step to say companies will function better once they outsource some of their important work.

Professionals in the outsourcing industry know what it’s like to work within the virtual space. They can complete projects according to their clients’ preferred time and have systems in place to ensure the safe delivery of their data. When you decide to incorporate outsourcing into your business model, you will not only save time and cut down on spending but also easily adjust to the virtual world with the help of your partner outsourcing company. This is perhaps one of the greatest drivers of outsourcing we all realized in 2020.

Image credits to Pixabay

2nd Driver of Outsourcing: Lower Costs and Lower Risks

Cost reduction has always been a core motivation for outsourcing. The 1990s has seen a trend where companies outsourced necessary yet non-core functions — such as data processing and human resources — to reduce spending. In consequence, they reduce the risks involved in starting a new business or venturing into a new business path. 

Spendesk, a startup that provides financial management solutions, notes in their report how most companies plan to cut off hiring from their budget in light of the pandemic. In the same report, they identify salaries as the largest expense for many companies. With outsourcing, you don’t have to go through the entire recruitment process and spend money and additional benefits on individual employees. During a global health crisis, it’s important to keep your company running, and you can achieve this goal by lowering your costs and lowering your risks.

3rd Driver of Outsourcing: The Need to Expand

Now is the best time to make your company’s growth certain. The obstacles COVID-19 has placed in your company’s way, however, have likely targeted some of the most crucial aspects of your business. In Spendesk’s report, hiring new employees, marketing, and even payroll are a few aspects most companies generally feel the need to cut down on, and this is considerably troubling. For a company to expand, they should be able to move to a type of work adjacent to their core business. However, this becomes difficult — and almost impossible — with the sacrifices you make to keep your business running. 

The good thing is, you can still expand as a business by cutting down costs on hiring, marketing, and the like without sacrificing the quality of your company’s operations and core activities. This is precisely how outsourcing helps companies and why the BPO industry continues to thrive in a pandemic-stricken economic landscape. 

Image credits to Pixabay

4th Driver of Outsourcing: Scalable Workforce

Let’s say your business is in dire need of people for one-off projects or seasonal work. And let’s say you want to build an in-house team of employees for this type of work from scratch. A part of the entire process will look something like this:

  • Setting up the infrastructure and technology you need for the project
  • Signing up on various recruitment channels
  • Creating job requisitions for the candidates you need
  • Hiring the candidates you need by meticulously vetting and interviewing them
  • Training new hires to get the job done

What results from this process is a full-scale team you need only temporarily, which sounds a bit counterintuitive. Moreover, if you needed the work done ASAP, the same steps will apply. Unfortunately, you’ve already expended important energy on the preceding steps, all of which you can do away with if you go about scaling up your workforce wisely.

Outsourcing removes this part of the work from a company’s hands. It’s an efficient model for businesses that need either a temporary, seasonal team or a complete team of specialists as soon as possible.

5th Driver of Outsourcing: Access to Specialized Skills

In line with the previous item, this particular driver of outsourcing tells you the kind of work companies get from third-party providers. And that is expert output from specialists. The reward you get from contracting out services is a team whose skill set is optimized for one specific type of work. A good example is game development using a specific type of technology like Unity. Consider for a moment which of the two you would prefer to hire — a game development team with general skills or a game development team that explicitly says they specialize in Unity? The latter lends more credibility, and chances are, you get a more polished output by partnering with the same. This is what outsourcing will give you — people who are experts in very specific fields, plus high-quality output that can be done only by these experts.

6th Driver of Outsourcing: Access to the Necessary Technology

Having the right technology is not gained through a one-size-fits-all approach. Different projects require different types of software and hardware, both of which can be pricey, depending on your project’s needs. 

But if you outsource technical projects to a company that has the right infrastructure, you gain access to the technology you need. And you wouldn’t have to spend time and money to acquire them! The beauty of outsourcing is the level of access it affords companies on all fronts — from talent to infrastructure. And this is especially true during this time when resources tend to be scarce.

Image credits to Pixabay

7th Driver of Outsourcing: Amazing Outsourcing Destinations

Or more specifically, offshore outsourcing destinations. Now that we’re living in the age of hyperconnectivity, offshore outsourcing’s benefits arguably outweigh those of outsourcing in nearby areas. This is because you significantly reduce your costs with the former without fearing a substantial decrease in control. 

The Philippines, for example, is a great offshore outsourcing destination for US- or Europe-based companies. Some of the advantages you gain from outsourcing to companies based in the Philippines are reduced costs due to the lower cost of living in the country, flexible hours, and of course, Filipinos’ mastery of the English language. 

In Summary

The top seven drivers of outsourcing in 2020 are:

  1. The necessity to work virtually
  2. Lower costs and lower risks
  3. The need to expand
  4. Scalability of workforce
  5. Access to specialized skills
  6. Access to the necessary technology
  7. Outsourcing destinations that help your company grow better

Looking for an outsourcing partner you can rely on 24/7? Choose NarraSoft. Our outsourcing services range from project development to chat support services to Unity game development, and so many more

Get in touch with us through email at or fill out the form on the side or drop a message on our chatbox. We look forward to helping you grow your business.