Read this article to gain insights on How Companies Benefit When Employees Work Remotely?
The rising threats posed by the COVID19 pandemic are forcing businesses to rapidly operate in new ways. During these uncertain times, business leaders must develop new ways of operations that can propel long-term changes in their business. As they cannot take the risk of not doing business for months or years, shifting to a virtual or remote work environment is now the new normal. Today’s raging situation is now triggering more and more companies to transition their resources to work remotely. However, there is also a need for you to reassess and restructure your organization’s expenses, if you wish to continue to expand your business post-COVID-19.
Let’s see below the reasons why companies are increasingly adopting this trend.
Remote work can streamline budget
Unlike the global financial crisis that we encountered during 2008, the coronavirus induced downturn puts businesses in an unpredictable financial environment. Streamlining the spending patterns is the only option in front of businesses to avoid being grounded.Insights from the Global Workplace Analytics suggest that enterprises can eliminate up to eleven hundred dollars in expenses per resource every year, just by sending them to work remotely! Companies that allow it’s resources to work from home will have zero overhead costs. This includes rents, internet costs, hardware procurement, maintenance, electric bills, and other infrastructure expenses.
“By 2022, 80% of I&O organizations that lack digital business strategies will risk cuts in budget, resulting in outsourcing as a means of delivering results.”
Enables businesses to streamline their development model
The effort that is required to handle work from home resources is pretty much the same for managing offshore resources, incorporating this hiring strategy can help businesses to cut down costs and navigate the downturn.
Apart from cutting operational costs, streamlining the development model can also come as a viable hiring strategy that could potentially save millions of dollars. Streamlining the development model means replacing onsite developers with offshore developers. By following this strategy, companies can either build a blended resource pool by replacing some of their onshore developers with offshore developers or by hiring an offshore development team at the same time maintaining their onsite project management team, by doing so they can cut down the cost
associated with maintaining 80 to 90% of their onsite resources. This will ensure maximum ROI while offshoring their development.
Replacing onsite resources with offshore programmers is a proven cost-cutting strategy that is tried and tested by many of the successful enterprises across the globe, especially during the global credit crunch of 2008. Today, many enterprises are adopting this strategy as a contingency plan to navigate the downturn. This is because of the availability of highly skilled and talented offshore developers who are willing to work remotely for low hourly rates.
The key reason that makes this strategy highly effective in cutting down cost is because of it’s added advantage that gives businesses the agility to hire offshore developers at just only one-third of the price of hiring an onsite resource.
Even though there are several benefits associated with hiring a team of offshore developers, there are also some challenges associated with offshore software development.
Increase in productivity
Various studies indicate that remote workers are more productive when compared to in-office teams. Remote work eliminates many distractions that hinder the productivity of employees such as the need for long commutes which saves them a lot of time. Asides from commuting, remote workers can dedicate a large percentage of their time and energy to work. Furthermore, remote workers can contribute to reducing the carbon footprint from our environment.
Access to global talents
With top talents spread out all over the world, companies can hire resources or teams that possess in-demand technical skills from any time zones. By hiring software developers from Asian countries, a US company can operate 24X7 without anyone working overtime. Offshoring can be highly beneficial for companies that have difficulty hiring onshore resources with specialized skills. Tech giants like Intel, Qualcomm, Microsoft, Apple, and many others save billions of dollars from onboarding offshore developers. By offering a remote work environment, companies have more opportunities to garner highly skilled resources from any time zones.
Reduction in employee turnover
Employee turnover can negatively affect business functions and project delivery. Training new resources to match the skills of the previous ones is a costly process and needs loads of investment and time. When compared to on-site workers, remote workers are less likely to leave. The ability to work remotely is the main reason that makes them stay for long years.
Will companies permanently shift towards a remote work environment?
A recent survey by Gartner predicts that almost seventy-four percent of businesses will permanently shift their employees to work from home(homeshoring) post COVID19. Embracing a fully remote work environment will give businesses greater flexibility to deal with future disruptions, such as the current COVID-19 pandemic. Hence businesses will soon or now transition away from the office to a fully offshore workforce.
Work from home (homeshoring) vs Offshoring: Which one will win?
While benchmarking the models that enable a cost-effective remote work environment, experts believe that blended or distributed teams will emerge as the next normal for most of the global businesses.
In order to cut their budget and at the same time drive results, more and more businesses will soon or now adopt offshoring. So, in this match between homeshoring and offshoring, the latter will emerge as a clear winner. Therefore, working with an offshore workforce might end up being the best move a business leader could possibly make.
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