A study by Gartner analysing the standout performers of the 2008 recession has stated that a limited number of impacted enterprises got out of the economic downturn and had a substantive growth when compared with their peers. The research has evaluated publicly traded companies in Europe and the USA with 20 years of complete financial information. Out of the 729 scanned companies, just 60 (equalling 8,2%) have preserved a competitive lead in the long term.
The question many of you might ask is: ‘What have those 60 companies done differently?’ According to the same source, performing business leaders take two key actions to get ahead and deal with recessions: (1) they prioritize the distinctive parts of their strategies (talent’s strategy included) to tactically navigate through uncertain times, rather than simply reacting to them, and (2) they focus on balancing the top- and bottom-line growth under varying business scenarios.
Through the strategic business elements that Gartner advises to take care of, talents and innovation play a critical role. Today, at the crossroads of the 4.0 and 5.0 industries, led by automation, AI, machine learning and digitization, investing in these elements could be a true game changer.
However, finding the right talents to secure your innovation processes could be a challenge. Just in 2022, 47% of CFOs stated difficulties in finding and hiring professionals. Partnering with software development companies, who have already the expertise in the emerging technologies and in working with projects from different industries, could be a solution worth considering. Here are some of the top gains your business could get from these collaborations to face recessions and to break through stronger.
1. Cost reduction
Hiring in-house comes with a series of costs. Finding the engineers, hiring, and onboarding them, paying the salaries and local taxes, covering the benefits and perks are just part of the price.
In this very moment, partnering with a software development company comes in handy. You are being charged per hour, and the provider takes care of all the involved processes.
2. Flexible resources
Collaborations with a software company come with the opportunity to adjust the team format and size to your current business needs and budgets. The flexibility you get supports your company in saving valuable resources in terms of costs, people’s engagement (as they don’t feel the pressure and risk of being fired), and time.
Moreover, relying on experts to develop your digital strategy allows you to focus on your in-house team and prepare them for the post-recession period. Gartner, for example, advises to use this time as an opportunity to reorient the skills of your talents and align them with the future needs of the company. Additionally, an important recommended effort is to pay a special attention to building and nurturing engagement through leaders.
3. Ongoing workflows
Working Agile is one of the best decisions business leaders make to build digital and software products. Outsourcing software development companies know about this and implement Agile widely.
Agile processes ensure customer-centric collaborations, transparent and constant communication, faster delivery of your product, and minimized risks, as changes and feedback can be implemented on the go.
There is no need to waste time and energy on making transversal changes in your organization and learning to work Agile. In unpredictable times, experimenting could create chaos among your team. Go for a provider with a strong background in delivering software development projects – they are going to adjust Agile practices to your business model and workflows.
4. Increased security
It might have come into your mind that you could reduce the costs through hiring remotely/freelancers by yourself. But among many other risks involved in the process, the more remote workers you have, the higher your exposure to cyberattacks is. McKinsey 2022 data shows a 15% annual increase of costs related to cybercrime, that are expected to reach $10,7 trillion in 2025.
Software development companies are using secure systems and are constantly investing in security. A collaboration with them could save you from dealing with cyberattacks and paying additional monthly subscriptions for security software.
5. Timewise efficiency
Time is essential to keep yourself on a powerful position and ahead of your competition. In recession or in periods that predict it, delays could cost companies higher prices than in stable and calm days.
Trusting your software development needs to an outsource provider saves you the time of finding the right people, onboarding, defining workflows, learning the new market trends and the emerging technologies. The engineers and developers from companies with a history in the software development market have gained the necessary expertise to provide high-level services and support for their customers. Your role is to choose strategically your partner, and to benefit from their expertise to secure your business, in order to have it bright and shiny after the storm.
Have you considered a partnership with a software development company, but you need more details to make a decision? We would be happy to answer to all your questions.