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NZ's History of Embracing Outsourcing Bodes Well for the Future

Wednesday 1 December 2021, 4:30PM

By Premium SEO NZ

757 views

CHRISTCHURCH

Outsourcing is not a new concept. The practice can be traced back to the 18th century when trade ships gathered and employed human and other necessary resources as they travelled. Outsourcing is also often closely linked to freelancing – a term which is rooted in the medieval practice of knights hiring out their military services.

In our globalised economy, outsourcing continues to grow, as it allows businesses to access talent at affordable prices. Offshore outsourcing to developing countries is particularly effective in lowering costs for companies based in developed countries. However, onshore outsourcing is also gaining momentum. And New Zealand is ahead of the curve in respect to both types of outsourcing when compared to other parts of the world.

This is because New Zealand business is primarily made up of SMEs, which do not necessarily have the finances, know-how, or capacity to manage all services, structures, and functions internally. Some of the more common aspects that New Zealand companies outsource – particularly to other local specialist companies – include IT support, accounting services, and human resource management.

Of these, IT outsourcing is especially popular, as many small businesses simply cannot keep up with the rapid changes in technology without outside assistance and expertise. As a result, finding an IT company in Christchurch is becoming increasingly easier, with many such companies offering tailor-made solutions specific for SME needs, including cloud integration, website hosting, and infrastructure upgrades. These companies can also assist with both software and hardware-related customer care and troubleshooting – all at a fraction of the cost of an in-house IT department.

Based on the current 4IR trends, it is predicted that outsourcing will become a standard business practice in the future. Given New Zealand’s history of embracing outsourcing, the country seems well-set to make the most of this business model.