The impact of Covid-19 on outsourcing companiesThe year 2020 has been that episode of the serial with the villain who robbed and took away everything from the angel Mother Earth.
It made human beings experience the worst time in history. The entire globe is dramatically suffering from the COVID-19 pandemic situation. People becoming homeless, losing their lives, giving away the two-time meal, this time has shown the impolite side of the Earth.
The pandemic situation has dog-tired the economy of the whole world, closing businesses around the globe and making people fight for even simple life. Outsourcing companies are too in this trap of destruction.
The outsourcing companies are known to facilitate the business owners by providing in their respective niches. Outsourcing facilities are extensively utilized by the organizations to ease their burden of manufacturing products and focus on other aspects of the business like marketing, management, etc.
Just like other businesses that are being affected by COVID gust, Outsourcing companies are also not left behind in this Marathon.
The following reasons will throw more light upon this subject-
- Strict Travel restrictions
We are very familiar with the Lockdown in the entire world which restricts the stepping out of people from their houses. The worldwide shutdown has caused the logistics companies to not work efficiently. The primary source of revenue for the India sourcing companies mainly came from the transportation of goods across the world. With the increased severity of global conditions, the logistics are unable to perform their task in an orderly manner, thereby resulting in a big loss for such companies.
This has also caused a drastic hike in the transportation cost of goods because the profit scale of these businesses was mainly structured on the basis of economy scale. With lowered business activities, these organizations are forced to increase the price for the continuation of their service.
- Deficiency of Staff Members
Human resource is one such resource which is suffering a lot as they cannot step out of their houses and are only allowed to go out in an emergency due to the fear of the spread of COVID and knowing the fact that few companies in the IT sector can continue with their work virtually but other companies of production and manufacture need the physical presence of people.
However, several logistics and textile sectors are suffering the most in outsourcing their requirements to the outsourcing organizations.
- Absence of Adequate Infrastructure and Equipment
A majority of the outsourcing organizations considered the work from home concept for most of their employees thinking about the severity of the disease. But, outsourcing companies are mainly based on effective communications and require their employees to maintain communication in order to carry out daily tasks. As employees could work while being in their own space, the main thing that suffered the most is the quality of work due to unsatisfactory work results from home arrangements. This, in turn, created quite a serious problem for carrying out the everyday operations of these companies.
- Increased record of Order cancellations
The major concerning factor for the outsourcing organizations is the increase in the number of order cancellations they are receiving from their client companies. This is mainly because the primary businesses are closing their operations, thereby concerning the functions of outsourcing companies.
Hence, The outsourcing companies cannot perform with proper communication among their employees. In a nutshell, it is really a hard time for companies to survive the pandemic shock. Therefore, everyone is expected to show patience to understand the critical scenario.
keeping in mind that there is always a morning after the dark night.
