After shocking new data from the United States sent chills throughout the globe, there are now fears that the world is on the verge of teetering on the brink of a recession. However, the suffering is going to grow a whole lot worse for western economies as a result of the United States recording the greatest rate of inflation since 1981. This has stoked fears that a worldwide recession is quietly creeping up on the economy.
The conflict in Ukraine has not been beneficial in any way. The availability of venture capital is decreasing, liquidity is decreasing on the capital markets, and the outlook is gloomy.
It is challenging enough to run a firm as an entrepreneur, let alone in conditions that don't auger well for enterprises that operate on tight margins or, even worse, are losing money.
How do you as an entrepreneur plan to make it over the next several years?
"earn dollars, compensate in pesos," are the statements that have been attributed to Tim Ferris, the author of "4 Hour Working Week." You should try to get the most out of each and every minute, as well as each and every dollar, during the course of the day.
The groundbreaking study on remote labor has shed light on the cost-cutting strategy of outsourcing work to third parties. Workers throughout the world have been given the opportunity to establish themselves at home, and the initial results have been astonishing.
Even before COVID-19 made it an unavoidable reality, there was a growing trend toward establishing remote working arrangements. This trend is expected to continue. Given that the ground rules for working remotely have been established, business owners and managers are increasingly looking outside the country. The possibility of cutting expenses by recruiting workers in nations like the Philippines, which have high rates of literacy yet having relatively low labor costs, has become an increasingly attractive proposition.
Winston Ong, the Chief Executive Officer of BruntWork, suggests beginning with a virtual assistant from the Philippines and then moving through your personnel list to see which functions can be outsourced offshore. Integration of culture is an essential aspect to take into consideration. Filipino virtual assistants are accustomed to working for western clients, despite the fact that there are a number of cultural obstacles that must be addressed.
The culture of individuals working as virtual assistants in the Philippines is the most Western-influenced of any country in Asia. Their educational system is comparable to that of the United States, and English is considered to be not only their second language but also the language of commerce and administration in their country.
Ways that businesses might protect themselves from spiraling expenses
When times are tough, one of the most effective ways to lower operating expenses is to increase the use of outsourcing. " Entrepreneurs are becoming more aware of the outsourcing paradigm, and as they continue to have difficulty finding suitable local personnel, they are increasingly considering transferring their operations overseas. According to Winston Ong, Chief Executive Officer of BruntWork, "given the current environment, workers appear to be shifting jobs and seeking for greater income at an alarming rate, and who could blame them?"
According to what Ong indicated, BruntWork is currently placing between 200 and 400 roles in the Philippines each month. These roles include customer support, telesales, and web development, and they allow organizations realize a cost savings of up to 70 percent.
The recession will not be avoided solely by outsourcing. The World Bank has expressed optimism that manufacturing and supply chain activities will return to normal levels around the world in the near future; yet, it is possible that the genie is already out of the bottle.
Advantages to employing a third party
Companies are now in a position to develop policies and processes that will allow employees to work from home while giving the impression that they are in an office environment. Ong says, "I really think, it's going to be tough for employers to accept giving choice, that this is all going to eventually become the new normal with more rigid work arrangements that just look different from what it used to be," and he is right. It will be difficult for employers to accept giving choice. When the economy starts to tank, every company that wants to maintain its high level of productivity and adaptability will need to make outsourcing a central component of their strategy.
Regardless of whether or not the World Bank's forecast comes true, management will be forced to explore outsourcing as a means of preparing for an uncertain future if they are concerned about the possibility of a recession.
Jennyfer Ann Valencia was the author.