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Coronavirus COVID-19 and nearshoring

Apr 16, 2020 10:29:17 AM / by Photis Kostamis

Since the outbreak of the coronavirus COVID-19, consulting firms, think tanks, institutions and industry bodies have published reports and studies on the impact of the virus to industries. By now, it is clear to all that COVID-19 is impacting entire industries, driving them to uncharted waters and directly disrupting their business plans and in cases affecting spending on IT and technology.

One of these studies in March 2020, “Coronavirus Impact Index by Industry: A RadarView™ Assessment”, Avasant, published their Coronavirus Impact Index by Industry that looks at how COVID-19 is affecting 11 major industry sectors in four dimensions: personnel, operations, supply chain, and revenue. The resulting index is an overall rating of the impact of the pandemic on each industry (figure 1).

 

corona-impact-industries

(Figure 1)

It is worth noting that the impact of the virus in one of the four dimensions, namely “Personnel”. Covid-19 has affected more or less all vertical industries, some severely and some with minor impact with High Tech and Communications affected significantly. At the same time, another report published by Deloitte in March 2020, “Understanding the sector impact of COVID-19. – Technology Sector”, also acknowledges COVID’s-19, its effect and its significant impact on all technology fields around the world. But it also reports a positive aspect, that is that the disruption has caused an acceleration of remote working.

 

In broad terms, remote working can also mean outsourcing (nearshoring) some of your
activities. In particular in the IT and software sector, a company could nearshore outsource
part or all of its software development. But what is nearshore outsourcing in software
development?
 
Nearshoring is the practice of transferring a business operation to a nearby country,
especially in preference to a more distant one and Outsourcing is a situation in which a
company employs another organization to do some of its work, rather than using its own
employees to do it.
 
By using nearshore outsourcing tactically and effectively as a way to supplement in-house
development and in-house team, the company can gain access to a larger talent pool and
with the right choice of the appropriate partner, it can turn it to its advantage and achieve
exceptional results.
 
Think of being able to:
  • reach the team at all times
  • have overall control over them with reduced operational costs.
  • access qualified and experienced personnel with proven technological experience
  • communicate with no language barriers (ease of communication)
  • take advantage of minimal time zone difference
  • enjoy enhanced customer experience
  • take advantage of the cultural alignment


 
 
Photis Kostamis

Written by Photis Kostamis

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