• Elevate IT

Impact of COVID19 on IT Outsourcing to access the skillset required by your business

Updated: Sep 8



Software engineering outsourcing is simply like hiring an outside company or an individual technical expert to develop or support a task or a series of tasks on behalf of the customer. Customers can outsource the application development or product support, for example, if a non-tech company needs a new mobile app to keep track of their records or work hours, while others only outsource part of the process to be developed.


Software outsourcing is very popular because of its benefits such as access to the latest tech skilled talent pool, accommodating peak load and cost-saving. ICT outsourcing is required more than ever as the covid19 restrictions have impacted travel and pushed remote working at a large scale (P. O’kone 2020).


The coronavirus (COVID-19) quickly exposed the vulnerability of supply chains as the businesses started going into lockdown. For most organisations, this fragile ecosystem includes providers of critical ICT services.


The companies adapted work from home, and service providers need to ensure that their employees who support critical client businesses have the tools and technology to ensure speed, safety, quality and reliability. The overall efficiency of the services provided. The offshore locations faced new challenges where the workforce has not previously been set up for work-from-home scenarios.


It presented new tactical and operational challenges, including getting laptops to service provider personnel and setting up access to internet/ WiFi and secure connection to internet/ WiFi. Stephanie Overby (2020).


We offer software development services and software product services. The business provides access to a variety of software development functions, including Microsoft, Mobile, Web, Java, Test Automation, RPA, etc., as well as product services covering the provision and support of top-of-the-line software products for various industries. These activities are supported by world-class human capital management systems and an integrated Engagement model.


We help customers rapidly transform their vision into cutting-edge software products through outsourcing remote agile software development at an affordable price. Customers are offered to collaborate in real-time with like-minded technical experts.


The customer can delegate a task, a process, a function or any part of the company where access to technical expertise is required in the short term or the long term. Outsourcing is now more frequently used in the field of information technology day by day. The reason for the increase in outsourcing is the cost, access to the latest tech expertise and efficiency of the overall practice.


Customers are offered various types of outsourcing engagement models. Customers can choose to have on-site, nearshore or offshore outsourcing team or individual. Others would focus on engagement to have a dedicated team to work for them on a rolling contract or project-based outsourcing where a specific task is expected as an outcome of an engagement. The type of contract can also be the differentiation criterion, for example, fixed price contracts or payment terms based on time/material.


The common understanding is that outsourcing is done when you want to cut costs regardless of the service quality. The truth is, outsourcing does save money, but there is a lot of other value outsourcing can add to your business besides financial profitability. General reasons for outsourcing are lower cost of onboarding an employee, by hiring an outsourced partner, all the on-boarding costs can be minimized. Outsourcing provides access to fresh and expert knowledge of the matter. A third party can help to identify the missing elements of the process or a product. Outsourcing can help to work with a brilliant mind in the field and avoiding the hassle of permanent employment contracts as your technical expertise needs may change and you may need a different skillset with time. One of the values outsourcing offer is the customer can focus on what matters to them. Majority of the business which is non-tech need access to top-notch technical skills to support their business. So outsourcing partner skills can be utilised to provide the technical edge rather than developing a technical skillset in-house while your core business is non-tech e.g. manufacturing or business services etc.


COVID19 moved the organisations to change their way of workings and after COVID19 these new ways of working will impact the outsourcing markets as these new ways of working reduced the risks which were seen major before COVID19. The key drivers are information technology tools for remote working which are now widely accepted during COVID19, for example, zoom, Microsoft teams, google meet. The maturity of these tools is making more and more organisations use these remote working tools as mainstream tools in their regular ways of working.


The purpose of this study is to research and analyse the COVID19 impact on the approach for outsourcing (incl. offshoring) by New Zealand organisations in the software sector i.e. companies developing software or utilizing software applications for their operations. The key targeted outcomes are:


· To understand the COVID19 impact on outsourcing trends of New Zealand software market

· To assess the attitude and practice of the community towards outsourcing considering the new way of working becoming more accepted because of COVID19

· To identify barriers and concerns related to software outsourcing post COVID19

· To identify the key skills and technologies which businesses are looking for to get access through the outsourcing model.


We are keen to hear your experiences on how COVID19 impacted your business and the way you manage your ICT partners. Get in touch at info@elevateit.co.nz

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