Offshoring Strategy Challenges & Framework

Although the Covid-19 pandemic has altered things as we know them, smart offshoring strategies are still thriving. IT service providers have been at the top of their game in navigating this unforeseen crisis.

The past few years have seen these providers pick up the pieces that were meant to set them back and have instead enhanced their transformation.

Companies are now more reliant on their service providers’ efficiency thanks to the setbacks dished out by the pandemic. Seems like a lot of good came off it in the IT world as digital transformations are winning. You could also opt to go yourshore with Turnkey.

The company offers IT businesses offshoring solutions that are customized to suit their needs. It is an excellent option if you are in search of efficient and reliable partnerships to enhance production and service delivery.

Let’s take a look at post-pandemic offshoring strategies and why they’re beneficial to your company.

Offshoring Challenges During and After the Pandemic

Did you know that at least 80% of respondents saw revenue decreases while facing operational drawbacks and challenges during and after the pandemic?

The imposed lockdowns by governments around the world were the largest contributing factor to this devastating blow. Additionally, this caused paralysis in economies which had a great impact on offshoring.

To survive this crisis, several companies reached the realization treading the digital route would be the best solution if they wanted to stay afloat. However, facilitating remote is not so easy if you are not inclined with its operational trends.

For this reason, companies have now seen the bigger picture and opted for digital influences to operate business processes. Therefore, offshoring became the new onshoring after the post-pandemic age.

Cautious Business Transformation – Post Pandemic

Digital transformation is still on the rise after the pandemic crisis. Most companies have aimed to enhance their digital stance to efficiently execute current projects by reinforcing IT functions.

When it comes to onshoring vs offshoring, the one that is most beneficial to your IT company would depend on your production and service demands.

Ways to reinforce IT functions include:

  1.   Investing in automation strategies
  2.   Cloud migration
  3.   Analytics
  4.   Machine operation (ML)
  5.   Crowdsourced innovation projects
  6.   Artificial intelligence (AI)
  7.   Cybersecurity
  8.   IT function

The Art of Revamping Strategies by Service Providers

Revamping and adapting sourcing strategies is necessary if businesses want to enhance their production and profits. Even though the covid vaccines have reached many, the virus is still at play globally.

Its dance may have slowed down, but that doesn’t mean it won’t pick up its pace. Therefore, businesses should be on par with digital strategies and not be left behind should the unforeseen happen.

When looking at budget statistics before the pandemic, more than 40% of businesses spent their budgets onshore, 25% opted for nearshore, and 29% went the offshore route. However, post-pandemic, companies are more cautious and therefore opting to continue offshoring contracts, hence the renegotiation.

This is to maintain the continuity of production and service delivery from IT service providers who are willing to carry the risks.

The Future of Offshoring  

In the present day, companies are reducing their internal workload and going the offshoring route as it is more reliable and feasible for service delivery and production.

However, to better manage offshoring strategies, companies need to adhere to a few tips to stay on par. Current sourcing strategies make offshoring the new onshoring thanks to enhanced digital technology.


1. When choosing service providers, companies should be more vigilant and strategic in their choices to ensure that they are getting the best packages.

2. To create ecosystems of digital innovations, businesses should opt to work with fewer partners.

3. The IT sourcing strategies that a company opts for should be watertight and provide assurance that will aid them in bouncing back and being operational no matter the circumstances.

4. Incorporating new ways of working is essential. Working remotely has become a standard operation post-pandemic as its advantages were evident. In fact, some companies have continued with remote operations even though they have office spaces available.

5. When it comes to contracts, making sure that they are proofed is essential. Sharing rewards and risks with service providers is vital. In fact, joint and outcome-based contracts are on the rise.

6. To determine the kind of service provider that companies need and to plug capability gaps, business owners must be selective with their transformation thrusts. These include applications, interfaces, cloud-native architectures, and other software trends.

7. Determining talent gaps internally will give companies an idea of where they’re lacking. This will allow businesses to save money and prevent project stalling as they would only need to use service providers for talent that lacks internally.


Stepping up the pace with digital transformation will afford you the privilege to see how offshoring has become the new onshoring post-pandemic.

Companies have seen the benefits provided by service providers like Turnkey and are renewing their contracts so they will not be left behind should the unforeseen occur once again.

They are trusted partners in the digital transformation of several companies and provide an array of services when it comes to offshoring strategies.

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Post Author: Abimbola Joseph

Abimbola Joseph is a creative content developer who derives pleasure in encouraging individuals to be the best they can be in all relevant facets of life. She believes that we all have a better version of ourselves which can be leveraged to impact others and make the world a better place. Connect with me on Instagram @abimbolajoe.

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