There is still a month left before we enter 2023, but the warnings of incoming economic downturns are already coming in thick and fast. According to KPMG's latest CEO survey, 86% of top executives believe there will be an economic recession in the next 12 months. This is indicated by the tightening of monetary policy in 54 countries, rising interest rates and inflation for these past few months - not to mention the Russia Ukraine war and COVID-19 pandemic still ongoing.
A few months ago the Washington Post made a statement that “Big Tech is bracing for the economic slump.” Although the reputation of Big Tech as a barometer of the whole economy is fair, all organisations should already be looking to take new precautions to ensure the organisation can survive and thrive, despite the unstable conditions. So, what can organisations do now to prepare for the incoming uncertainties? One of the strategies companies can consider is to outsource some of the organisations’ business processes.
The Benefits of Outsourcing Amidst Uncertainties
Economic uncertainties tend to wreak havoc on the growth plans of companies. During these times with varying uncertainty, outsourcing could put organisations in a better position to handle the fluctuations and uncertain conditions. Here are some benefits of outsourcing that could be of help for organisations:
Assist in cost savings
Reduction of cost has always been a key variable for companies when making the outsourcing decision. During times of economic uncertainties when your revenue starts getting impacted, cost savings would be a priority as organisations would not be able to afford spending as much they have before. Outsourcing gives your company the leverage to reduce costs in various areas of business operations, human resources and even digital technology.
Create flexibility in resourcing
In most organisations, manpower is often the biggest cost item. When the push comes to reduce cost, companies often cannot avoid laying off staff in order to make a dent in manpower costs. It is the most effective, yet perhaps least popular of all strategies. Outsourcing offers the flexibility to ramp resources up and down, as long as defined conditions are being met. Hiring offshore resources not only gives greater flexibility in terms of upsizing and downsizing headcount with lower cost, but also eliminates expenses such as office space and recruitment processes. Organisations with outsourcing capabilities are set to be in the best position to sprint forward.
Work with the best in the industry
Outsourcing companies are focused on up-skilling their employees in the focused industry and its operational needs to ensure the best qualified and experienced team is working for you. This means as a company, you will obtain high-level performance from experienced professionals in the related field that will naturally result in higher efficiency and greater productivity for your business.
Generally, outsourcing reduces costs, increases efficiency and improves your product or service offering. Especially in the travel industry, outsourcing is a common practice due to its flexible nature. Partnering with an outsourcing company is a beneficial business strategy in many situations, but it becomes a critical one during times of economic uncertainties to ensure stability and flexibility.
About ATI
With 20 years of experience in the travel industry, ATI has grown to be the largest business process outsourcing provider in Indonesia. We help various multinational travel companies grow and accelerate their business process by providing integrated Technology and Digital Services & Solutions. By comprehensively investing in our team- and utilising the combination of Human and Digital Intelligence, ATI has become a preferred partner of various global clients in the travel industry.
If you would like to know more about our business and services, and how ATI can help your organisation, especially coming into these times with great uncertainties, don’t hesitate to get in touch with us here to consult how our products and services could possibly help you.
