Outsourcing to rise as COVID-hit companies seek to cut costs

Outsourcing to rise as COVID-hit companies seek to cut costs

Global companies affected by the COVID-19 pandemic are likely to turn to outsourcing to reduce costs.

In a report by the Economic Times, IT services providers said there is already a move towards outsourcing as software services exporters had built up expertise in new technologies that clients were looking to leverage. Further, they noticed that clients’ preference for outsourcing over in-house tends to be cyclical.

Tech Mahindra’s Chief Financial Officer Manoj Bhat said that the next two to three years “will likely see an increase in outsourcing,” as clients need to optimize cost models while transforming their businesses.

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