The threat of economic recession has been haunting US businesses in recent months, and while it may seem like the worst is over, there may still be a recession looming overhead. Reports from CNBC indicate that the Federal Reserve’s rate tightening to address inflation could pose a recession threat. For many businesses hoping not only to survive but also thrive even in the face of such threats and inflation, preparation is the key.
The economy reflects the world as it is today– fast-changing and unpredictable in many ways. Businesses need to adapt quickly and prepare for whatever may come, and one of the ways to do so is to outsource.
Modern outsourcing allows businesses to scale smartly by getting tasks traditionally done inside company walls to be done virtually anywhere and at a much lower cost. While it may seem like a bad direction for your current employees, it is actually helpful for both you and them. Here are some of the reasons why:
- Lower Costs – Perhaps the most evident and impactful reason to outsource would be its effect on your bottom line. Outsourcing allows you to cut costs on duties that don’t require a full-time team, and spend less on those that do. Roles such as full-time software developers can cost just half as much when outsourced to the right location and the right outsourcing company. By lowering your costs, outsourcing allows you to do a number of crucial things, like retain essential employees and grow your business even amid possible recession.
- Less Stress – This applies to you and your current employees. With outsourcing you don’t have to take on the overhead burden of hiring an onsite employee; nor do you have to add to your current employees’ workload just to make ends meet. Remaining employees won’t have to take on the burden of extra work, and you won’t have to deal with the impact that that will have on employee morale.
- Better Benefits – Cost-cutting is often the first move companies make in preparation for difficult times, but this can lead to loss of benefits for employees. Outsourcing certain roles ensures that all necessary tasks are completed while keeping your costs at a minimum, and without having to pay for overhead benefits or take any benefits away from existing employees.
- Flexibility and Efficiency – Recession can often lead to teams shrinking and higher-level team members having to take on low-value tasks. Outsourcing eliminates this so team members can work more efficiently. When your team operates as it should, you have the flexibility to grow and explore different solutions without worrying about how this will affect productivity.
Outsourcing may not be the first thing that comes to mind when dealing with inflation or the threat of recession, but it offers benefits that can help businesses weather economic challenges and even grow in spite of them. If you’re unfamiliar with outsourcing and are wondering where to start, you can start here at CoDev.
CoDev has over 12 years of experience in outsourcing numerous technical positions including software developers, designers, and QA testers. Thanks to our streamlined process, you can be assured of high quality talent with your specific needs in mind, as quickly as a month after our first call. Get in touch with one of our friendly representatives today to get started.