Companies are required to be effective in their business operations. There is at at-least a small profit margin left at the close of each month. After they have paid their direct expenses and overheads There is usually just 5%, 10 percent or 15% left. This means that as much as 95% of the revenue return to machines that produce profits.
They are also the fortunate ones. There are many companies that struggle to make profits.
As companies grow, their profits increase, however, also the need for inventory, resources, and staff. It’s a challenge for a company to grow beyond the delicate balance of income and the demand for resources. It’s usually the businesses with the highest growth which are the ones with the highest cash demand and may even be cash-flow negative.
The business environment is challenging. Businesses are in a state of hyper-competition.
Then COVID-19 was introduced.
The process of adjusting to a pandemic
As if running a business was difficult enough, now due to the spread of the disease, businesses must keep their books in check with declining profits, increasing costs, and uncertainty. As of September 20, 2021, just 18 months following the COVID outbreak The census bureau’s Small Business Pulse Survey showed that 39% of small businesses believed that their “normal operation” is still taking more than 6 months to take place.
In addition to the cash shortage, companies have to contend with a growing employment gap and a workforce that demands higher wages and wants to work at home. In August 2021 an “Road for Recovery” report found that 59 percent of US small-business owners reported that they had difficulty hiring and retaining new employees. The battle is real.
The cost of salaries increased continuously and the total cost of hiring an employee – after adding all employer obligations – can be as much as 45 percent above the wage. It’s becoming more difficult for companies to balance their balance sheets.
Understanding remote work
There’s an upside. The epidemic has made companies realize that remote working is an alternative. The shutdowns have forced employees to alter their daily routines and to adopt remote and online tools to carry out their day-to-day tasks – and stay at home.
In the past, remote work was an unpopular choice for a lifestyle that was reserved for small groups of adventurous workers. However, after more than 18 months of COVID, the world has become aware and is now part of the new normal.
As companies adopt remote technology, they are discovering that they do not require their staff locally. Certain companies have discovered that they can effortlessly hire staff from offshore for just a lower cost. They can reduce 60% to 80% of total costs of employment when they employ employees from the most popular offshore locations for staffing. This is a significant insight for some businesses.
Work globally and access a global workforce
Thanks to modern communication tools and the ease of remote work employers are now able to have the ability to tap into the world’s workforce that is highly skilled. All industries are turning to outsource because they’ve discovered that they can access the same high-quality – and identical results – at only a fraction of the cost.
Every job is offloaded. Analysts, accountants, marketers designers, salespeople as well as administrators, developers, and developers can all be outsourced. If the work is done on computers and the job is able to be completed off-site. Employers are looking for highly trained professional personnel to cover nearly any vertical. Utilizing a global workforce and especially an offshoring country such as the Philippines can help companies dramatically reduce costs while simultaneously driving revenue, innovation and growth.
Not suitable for everyone.
Offshoring isn’t the best option for every company. If the company is against remote work, or they don’t have the right processes in place or aren’t able to support an ongoing workforce, then maybe outsourcing isn’t the best appropriate solution at the moment.
The Philippines is home to 110 million people who are fluent in English as well as nearly one million college students every year. Philippine employees have earned a reputable reputation as being a well-educated, culturally aligned, and extremely competent talent pool.
Because of the lower cost of living in the United States Employers can hire excellent employees at a salary between $6,000 and $10,000 each year.
A lot of businesses are turning to outsource in recent times which is why it is advisable to look into the option to determine if outsourcing is a good fit for your business. Employing global workers is allowing companies to get ahead of their budgets and get the top personnel they need at only a fraction of the cost.