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The Impact of Covid 19 on Indian Outsourcing Operations

The Impact of Covid 19 on Indian Outsourcing Operations



Ever since Covid-19 struck the world at large, life has never been the same for humanity globally. While individuals, States, Countries, and Continents are finding ways to combat the impact of the deadly virus, its noticeable impact on the global economy and is a matter of enormous concern in the present times.

As Coronavirus struck in 2019, it brought the hospitality industry to a halt, with travel and tourism affected as the world got locked in houses. Almost all sectors experienced an impact of the pandemic. Covid 19 did not spare the approx… US$180 billion IT outsourcing industry as well with the Govt ordering a complete lockdown in India effective 24th March 2020 to curb the spread of community transmission in the country.


With this Govt. move, organizations put into force their business continuity plans overnight to ensure minimal impact on business operations. IT industry quickly moved from offices to homes, and it was business as usual for Companies in no time. Physical meetings gave way to virtual meets as Companies did not have a stone unturned in honoring contracts and deliverables to their clients.

While humanity took a front seat in all collaborations in these unprecedented times, all sectors got into action to find ways and mean to minimize business disruption.


Below are a few of the many measures IT and outsourcing companies in India took for adapting to the “new normal” model of working.
  • As people got confined in their houses, post the lockdown in India. IT companies ensured transportation of all required hardware to the employee’s residence to continue work on the Clients requirement. Almost all companies provided a timely delivery of laptops/desktops to employees. And good internet connectivity for the employee at his residence (wherein most companies reimbursed employees for good internet connections).
  • New Non-disclosure Agreements put into force between organizations and employees ensured that All outsourcing Companies addressed privacy concerns. With this, ascertain Clients’ data security requirements and nullify any future data security breach beforehand. Clients also relaxed privacy policies to continue working on critical projects from home.
  • Organizations could operate essential services and projects requiring office infrastructure during the lockdown with specific relaxations extended by the Government, ensuring business continuity for critical clients.
  • With Covid striking in, industries were exposed to this uncalled challenge of operating businesses big and small from homes. The need for reviewing contracts was felt and exercised by all Companies, focusing on data security and business continuity to safeguard the interests of both the contracting parties.
  • All outsourcing companies also identified the need to predict performance for the next 1-2 years. Companies these days consider all positive and negative factors for estimating future performance and mitigating negative aspects beforehand to ensure timely delivery and performance. Covid has forced organizations to think beyond the thinkable and find ways of constantly negating the impact of unprecedented situations.

Many companies are devising solutions every second day. The outsourcing industry is surely braving the Covid impact and keeping up with their contractual obligations irrespective of the COVID situation.


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