With the world facing the prospect of widespread recession, many companies are considering business process outsourcing as a smart option to take during what is likely to be a challenging period, and certainly a time when businesses are placing reduced overheads and business efficiency high on their agendas.
According to Nodir Ruzmatov, Forbes Council Member and CEO of RevoTech, a leading advisory for outsourcing and globalised employment, having an outsourcing strategy puts business owners in a better position to handle the demands placed on their operations by a recession. He says, “During times of recession when your revenue starts getting impacted, your business cannot afford to spend as it has always done. Outsourcing gives your company the leverage to reduce costs.”
Let’s look at some of the savings through which offshoring can deliver a competitive advantage:
- No spending on premises, equipment or a raft of other overheads.
- A company that is outsourcing has the flexibility to reduce the outsourcing partner’s headcount. Good for costs, without necessitating lay-offs.
- Laying off staff also means that the remaining employees, leaders and managers included, must take on increased responsibility. It may be a sensible short-term strategy for initiating reduced overheads but, in time, it can lead to a rise in errors creeping into the work, elevated stress levels and even burnout. This can only add to costs and therefore undercuts the original and intended benefit of staff reduction. The employment of a business process outsourcing company’s talent pool can keep your company and your staff protected from these damaging side effects.
- A reduced salary bill is a recognised benefit of outsourcing.
- The streamlining of operations brought by a reputable outsourcing company is a key method of delivering reduced overheads.
- A team that works in outsourcing is generally flexible, adaptable and able to slot into roles as situations require, which saves companies money on candidate screening and the whole hiring and onboarding process.
- Little (and not so little) extras: Such as the subject matter experts provided by the outsourcing company Intogreat; professional guidance from experts in your business field who don’t cost you a cent. Because, in times of economic strife, fast and fluid events require a similar response and the skilled staff of a professional business process outsourcing company will be there to help you to manage points of concern.
Frequently Asked Questions:
How can a company thrive in an economic recession?
- With working from home and virtual work now firmly embedded in business culture, nowadays, there are myriad roles which can be conducted by a business process outsourcing company. Considering the previously outlined benefits that outsourcing offers during a recession, it might the best time to join the outsourcing ranks of businesses that do well in a recession.
- The business continuity, increased efficiency, reduced overheads, improved risk management and enhanced scalability offered by outsourcing simply cannot be ignored in recessionary times and could prove to be a critical step for many companies.
Which areas do companies typically outsource and offshore to survive recession?
- One notable example is IT: According to a study by Computer Economics, there is an increasing trend for companies to move more of their IT spending to professional outsourcing services.
- One of the IT segments with the greatest potential for delivering reduced overheads through business process outsourcing is desktop support.
- The outsourcing service that stands out from the crowd when it comes to exponential improvements in service levels is IT security. Half of the organizations that outsource IT security report that it improves service levels markedly.
How does Intogreat select the best outsourcing staff to recession-proof my business?
- As part of your business’ cost management with Intogreat, we identify tasks that are non-client facing and can be done anywhere, as these roles can be offshored. The positions can require plenty of specialized capabilities or involve simple admin tasks. Intogreat provides consultation and resource optimization to assist in identifying the best roles for your organization so you can be confident of taking the right path.
- Offshoring can reduce your staff turnover with expert talent management. It costs a lot to find, hire and train a new employee and the more frequently you do it, the more it is going to cost you.
- Our recruitment process is a rigorous one, but as we also offer competitive employee compensation it can also be a rewarding one for both employee satisfaction and staff.
- Because Intogreat understands the reasons for high staff turnover, we provide our employees with opportunities for advancement, we monitor employee motivation and engagement, and also offer a healthy work-life balance; all ways of boosting employee retention and satisfaction.
- Long-serving staff will not just save you money, but the experience gained in your business means they contribute to increased efficiency and productivity, which is essential with so much business in recession.
- Our focus on hiring high-quality employees and building their benefits around what matters most to them is our way of keeping them happy and engaged and best-placed to navigate your business through the choppy waters of recession.
How do companies ensure success with outsourcing and offshoring during a recession?
- Outsourcing is a growing industry and an accepted business practice designed to create value and fuel growth. Companies of all sizes use outsourcing for various parts of their businesses. Economic conditions such as a recession often enhance the beneficial impact of outsourcing for outsourcing clients.
- While outsourcing can be a beneficial business strategy in many situations, it becomes a critical one during times of recession.
If you decide to tackle the threat of recession by choosing the right outsourcing company, you can find out more here about how Intogreat Solutions Philippines can provide your business with a comprehensive and worry-free offshoring experience.
What’s more, cash flow optimization with Intogreat and cost management with Intogreat can really help you through the economic downturn.
Because, with Intogreat, the outsourcing company of choice, the process is easy, successful, rewarding and empowering.
Book an appointment here with one of Intogreat’s expert offshoring consultants.
