23 December, 2024
Business

Outsourcing is the key to protecting companies from the worst of the predicted global recession, says BruntWork CEO Winston Ong.

439 Comments02.7k

Entrepreneurs and investors have been discussing the high chance of global economic recession for months due to the cumulative influence of inflation, pandemic, the shattering of international supply chains and the end of the cycle of quantitative easing that saw enormous amounts of money printed out of thin air. 

The World Bank’s Prediction

2.9% growth in the global economy is predicted this year, down from 5.7% last year. This would amount to an almost 50% contraction in economic growth. 

To make matters worse, the World Bank predicts that this lower growth rate will continue for several years as we deal with the aftermath of the war in Ukraine and continuing lockdowns in China which are both driving up the cost of everyday essentials. 

Strategies for companies to avoid rising costs

In many countries, the “great resignation” hit SMEs hard after the nadir of the pandemic. Inflation is pushing many workers to ask for higher wages or change jobs. The international labor market is in a state of flux.  

“Entrepreneurs and managers approach us daily explaining their struggles to hire staff locally.  In the current environment, workers seem to be moving jobs and asking for more pay at an alarming rate, and who could blame them.” said Winston Ong, CEO of BruntWork. 

“Many companies are seriously looking at relocating their teams to jurisdictions like the Philippines which have higher unemployment rates than many Western countries. Furthermore, labour cost savings of 70% or more are possible for most roles that are outsourced, from customer support, telesales and web development,” Ong stated.  

Outsourcing alone won’t avoid recession. The World Bank hopes that supply chain operations and production around the world will resume to normal levels soon, but perhaps the genie is already out of the bottle. 

Benefits of outsourcing

There are numerous benefits to outsourcing, says Ong. “The reduction in labor cost is an obvious benefit of outsourcing, but BruntWork’s clients report that hiring staff from the Philippines results in higher efficiency, the ability to increase trading hours or target new jurisdictions. The remote work experiment during the pandemic has made the option of relocating entire labour forces to the Philippines a more credible option,” he said. 

Whether or not the World Bank’s prediction comes true, the word “recession” evokes scary images of the 2008 market crash and companies should do all they can in preparation for reduced spending in the economy and higher interest rates. 

News Team

View all posts
Share
Best Smart Home Devices To Make Your Life Easier In 2022 Previous post

Related Articles

How Fixed & Vehicle Mounted Terminals Enhance Warehouse Management Systems (WMS) Efficiency
Business

How Fixed & Vehicle Mounted Terminals Enhance Warehouse Management Systems (WMS) Efficiency
Business

Perpetuus Introduces Groundbreaking Graphene Masterbatch for Tyre Industry
BusinessNews

Medicash Confirms New Chief Executive as Sue Weir Retires

How to Protect Your Business from Scam Phone System Contracts
Business

How to Protect Your Business from Scam Phone System Contracts

439 Comments

  21. thwin สล็อต

    Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates.
    I’ve been looking for a plug-in like this for
    quite some time and was hoping maybe you would have some experience with something like this.
    Please let me know if you run into anything. I truly enjoy reading
    your blog and I look forward to your new updates.

  22. ufa147

    Hi, i think that i saw you visited my web site so i came to “return the favor”.I am trying to find things to enhance my
    web site!I suppose its ok to use some of your ideas!!

  25. chokdee777

    An intriguing discussion is definitely worth comment.

    There’s no doubt that that you need to write more about
    this issue, it might not be a taboo matter but typically folks don’t discuss such issues.
    To the next! All the best!!

  26. edm2win

    My brother suggested I might like this website. He was totally
    right. This post actually made my day. You can not imagine simply how much time I had spent for this information! Thanks!

  29. คลิปโป๊ใหม่

    You’re so interesting! I do not suppose I have read
    anything like that before. So nice to find someone with a few genuine thoughts on this
    subject. Seriously.. many thanks for starting this up. This website is
    one thing that is needed on the web, someone with a little originality!

  31. หนังโปี

    We are a group of volunteers and starting a new scheme in our community.
    Your website provided us with useful info to work on. You have done a formidable activity and our whole group can be grateful to you.

  33. หนังav.

    Greetings, I think your web site could possibly be having internet browser compatibility problems.
    When I take a look at your site in Safari, it looks fine however,
    when opening in IE, it has some overlapping issues.
    I simply wanted to give you a quick heads up!
    Aside from that, wonderful site!

  34. ควยกับควย

    Hello! I could have sworn I’ve been to this website before but
    after going through a few of the posts I realized it’s
    new to me. Nonetheless, I’m definitely delighted I found
    it and I’ll be book-marking it and checking back
    frequently!

Leave a Reply

Your email address will not be published. Required fields are marked *