Although Australia’s businesses are not impervious to the unrelenting turbulence of a global economy, prudent business owners can take precautionary measures now in order to better brace their enterprise for any future recession that may arise. With the unpredictable nature of this pandemic, it is difficult to determine when or how severe an economic downturn will be; yet planning ahead and implementing strategies today could prove invaluable during leaner times tomorrow.
As we investigate strategies to bolster your business during a recession, it’s also important to consider the economic predictions for 2023. The shifting nature of geopolitical dynamics and global events have been immensely disruptive to companies worldwide; thus, understanding what this year holds can be instrumental in helping you prepare ahead of time.
2023 Economic Predictions
The looming threat of a recession has placed most businesses in an uncertain state. During these difficult economic conditions, any unwelcome shock to the global economy such as a sudden surge in inflation, sharp rises in interest rates or another wave of Covid-19 could easily trigger an international recession.
The World Bank Organisation has projected a global economic growth of 1.7% this year, with an expected 2.7% increase in the following one – an obvious low rate for these times. Notwithstanding, not all predictions are dreary: although the threat of pandemic does set us back from our target goals, some rays of hope remain for those keeping watchful eyes on current happenings around us.
According to Deloitte’s research, the factors which caused the recession over the past two years have begun to reverse course. Congestion of supply chains and other pandemic-induced issues such as expensive raw materials from geopolitical conflicts and policy changes are gradually abating. This implies that inflation will start to decline and supply chain dynamics should eventually return to normal.
Although there is good news in sight for businesses, the path to reaching a positive outcome requires some difficult changes first. JP Morgan’s global research reveals that central banks are likely to reduce interest rates which should result in an increase of asset prices and economic recovery. Unfortunately, this will come at a cost as we anticipate higher levels of unemployment, greater market volatility and financial instability.
Offshoring: Operational Efficiency
Given the current economic uncertainties, it is essential that business owners have a plan in place to weather the storm. Offshoring can be an effective tool used to ensure operational efficiency and cost reductions during trying times. By outsourcing services such as IT and customer service offshore, businesses can save on labour costs while still maintaining quality service levels.
In a recessive economy, it’s essential to invest shrewdly – this is precisely where offshoring comes in. With an offshore vendor you get the benefit of not having to worry about extra costs such as office space and equipment; they provide all these resources for your team.
Additionally, offshoring facilitates businesses to save money on roles and duties that don’t necessitate a full-time team. The funds you secure can then be utilized to retain your in-house staff or offshore professionals and continuously work on the development of more advanced projects.
Resources Flexibility & Scalability
Companies looking to scale up with efficiency will surely appreciate this benefit. Offshoring teams have a vast talent pool where specialists can be interchanged for optimal proficiency. With this, businesses can easily scale up or down during a recession as per their needs and financial capacity.
Additionally, offshoring makes it much easier to access talent from global markets – this ensures that you get the most experienced professionals at any given time.
Deep Skills and Experience
In times of financial recession, it is essential to maximise profits and minimise expenses. Therefore, when selecting an offshore team, expertise and dedication are key factors in deciding who will do the job right. Offshoring allows businesses to access a ready-made pool of highly motivated professionals that are degree-qualified and experienced – all at an economical cost.
Offshoring provides businesses with a cost-effective solution to survive and thrive during an economic downturn. By making use of the wide range of skills, resources and experience available in global markets, companies can make wise investments that will yield successful results. Offshoring is a viable option for businesses looking to ensure operational efficiency while managing costs without compromising on quality standards – it could be the key to weathering the storm.
Overall, offshoring is a powerful tool that allows businesses to remain agile during tough times and come out ahead. With careful planning and foresight, companies can leverage offshoring to maintain their operations while developing new strategies to help them grow even more when things start improving again. If you want to secure the future of your business through outsourcing, contact our team now and we will help make it happen.
About The Contributor
JP Galinato is the Head of Community and Marketing at hammerjack, one of the fastest growing outsourcing providers in the Philippines. He has an eclectic mix of interests ranging from dogs, food, tv and movies, and remote work. He lives in Manila, Philippines with his favorite dogs Juancho, Han, and Darcy.