Organizations of all sizes are always looking for cost-saving measures but every now and then it becomes a necessity rather than a bonus. Such is the case in early 2023, with economic storm clouds gathering on the horizon and expert agencies such as the International Monetary Fund (IMF) warning that tough times lie ahead.
"Global uncertainty has risen to exceptionally high levels, with episodes of political fragmentation and turbulence likely to hurt economic growth prospects this year,” the IMF warned after publishing an analysis of its quarterly World Uncertainty Index, which tracks uncertainty in 143 countries1.
While major events such as the pandemic, Russia-Ukraine conflict2 and China-US trade tensions3 are impacting global economics, small businesses are being left to deal with the fallout. Between soaring inflation, interest rate rises and supply chain issues, many experts are predicting a recession in the next year and businesses that take early action are likely to be rewarded when hard times hit.
Identifying opportunities to reduce costs is crucial and, as many businesses already know, there is a ready-made solution when it comes to staffing. It is called outsourcing and can save organizations up to 70% in employment costs, increase efficiencies and provide access to greater talent pools.
Outsourcing allows organizations of all sizes to employ an individual or team without needing to worry about costly and time-consuming factors such as recruitment, training, office facilities, IT infrastructure, HR and payroll. Instead, they team with an outsourcing provider that can deliver solutions to suit businesses of all shapes and sizes and across industries as diverse as eCommerce, financial services and insurance, health care and hospitality and tourism.
While there are various forms of outsourcing, many small to medium businesses look to the offshore model as it often delivers the greatest return on investment. Research has found that almost 60% of businesses outsource to cut costs4 and partnering with a quality provider in outsourcing destinations such as the Philippines are a guaranteed way to reduce one's bottom line.
Outsourcing clearly makes good financial sense but it would be silly not to do everything possible to boost potential savings. Here are a few tips to make the most of your outsourcing opportunity:
The way we work is changing and that includes where we work. Between technology and the pandemic, remote and hybrid work has become standard and shown many businesses there is a smarter way of resourcing. This includes outsourcing services that can be done remotely and not simply because it is financially attractive. The benefits are numerous and, given the economic outlook, there is no better time to tap into them than right now.
The economy is not the only thing heating up in 2023. Amid headlines of battles and tug-of-wars, pushbacks and fights, this is shaping as the year the return-to-office debate could turn nasty.
 IMF warns on global economic uncertainty (iol.co.za)
 Global recession warning as World Bank cuts economic forecast - BBC News
 Avoiding catastrophe will be the true test of fractious US-China relations | Financial Times (ft.com)
 40+ Vital Outsourcing Statistics : How Many Jobs Lost To Outsourcing? – Zippia
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