Covid-19 has brought new changes into the world. The companies have started focusing on a digital model of doing business. It means they have a website and are reaching out to customers through e-mailers and digital marketing campaigns. Employees are allowed to work from homes in this new pandemic era.
The pandemic has made sure that companies outsource most of their work. It is because they can’t afford to hire the employees due to the lockdown regulations imposed by the pandemic.
Although outsourcing work was a problem when the suppliers in developing countries had internet issues, all the companies consented to the suppliers cooperating with them. The suppliers also provided relief from payments to their clients. This is because clients in the retail sector lost a lot of business. So, new contracts were signed between the suppliers and their outsourcing clients.
There are some steps that the companies can take to make sure that they have no problems in handling their outsourcing issues:
If a company loses its global network of suppliers, which happened in 2020 because people could not work due to internet issues, it is better to have in-house teams to cope up with such problems.
The resilience must be there in companies to handle outsourcing problems.
The best way is to have suppliers located in different parts of the world so that the chain of work does not get affected if the suppliers cant work in a certain part of the world due to lockdown.
Agendas for transformation:
Digital transformation has become a mainstay for companies due to pandemic. However, it’s important to choose the projects for investment because otherwise, they will lose in times of falling demand. Hence it’s better to team up with those suppliers who can fulfil the project goals of a company.
Focus on in house talents too:
Companies also need to focus on building in house talent. This is because projects can be stalled where the suppliers don’t have the necessary talents to finish them. The trend of internal capabilities getting increased along with outsourcing is likely to see a boost shortly.
The focus on joint ventures:
The companies should also sign contracts with suppliers that make them safe against any changes in the future. So, these contracts must make be based on the outcomes given by a supplier. Also, there must be joint ventures signed between the suppliers and the outsourcing clients. This way, suppliers will be forced to deliver the outcomes expected out of them.
Partnership with few suppliers:
It’s better to have relationships with few suppliers instead of a large number. It’s because when you have long-lasting relationships with suppliers, they are bound to serve you despite any difficulties. And when you have a large number of suppliers, it’s tough to manage them. It’s also tough to form lasting relationships with them because you can’t work with everyone all the time.
So, by following the above-listed steps companies can manage their outsourcing in times of this pandemic.