Efficiency and Cost Savings: The Benefits of Outsourcing During a Recession!

In order to keep costs down during economic instability, it's no wonder many businesses are turning to IT outsourcing as a cost-saving strategy.

Only the most prepared companies are working towards building a digital workforce strategy to brace for potential storms ahead. And the one area of business that will be at the top of mind for management, stakeholders, and C-suite alike is profits. But how can you keep ahead of the competition while balancing financial results?

Depending on who you ask these days, the recession is just around the corner or not. In early June of this year, CEO of JP Morgan Chase, Jamie Dimon, advises, "brace yourself" for an upcoming economic hurricane caused by the Fed and the war in Ukraine. Three months later, President Joe Biden's top economic advisor Brian Deese thinks the U.S. economy has enough "strength and resilience" to withstand a recession.

And although some analysts say things won't be as bad as in 2008, even the likes of Elon Musk and Jeff Bezos have recently weighed in about the recession. But despite all the educated guesses, the cost of living undoubtedly continues to increase, organizations are revising their outlook, finance departments are proceeding with caution, and thus the belt-tightening has begun.

5 Reasons to Outsource IT During a Recession

  1. Facilitating Cost Savings

Business is measured in terms of money earned and saved. Reducing costs is a crucial variable in the outsourcing decision. You cannot exercise the same spending pattern when your company's bottom line is impacted during a recession. Outsourcing allows your company to leverage costs and can be a lucrative long-term play.

  1. Technology is Ever Evolving

Regardless of the current market conditions, technology is ever-evolving. New technologies are emerging with ground-breaking innovations to tackle world issues. With such broadness and complexity, no one person can solve every one of them. If you only have a small staff at your disposal, they will have to spend a significant portion of time, money, and resources to be trained for any issues that may arise.

Outsourced IT professionals are prepared and trained, devoting less time to research and more time to provide solutions, yielding immediate benefits to your organization. More efficiency means more for your bottom line.

  1. 24 Hour Remote Support

The cost of remote IT support is substantially lower than that of an in-house employee. And if any problems arise, your remote support team is always ready to help you 24/7. This benefits any organization when the economy finds itself in choppy waters.

Outsourced or in-house, you can combine remote IT assistance with onsite personnel. This kind of supplementary help can take care of routine duties while your regular staff focuses on higher-value initiatives or fill in for your regular technicians on vacation, paid leave, or off on a sick day. Getting the tech support your business needs at a price that won't break the bank is now possible thanks to remote IT support.

  1. Scale Up or Down

Across the business landscape, labor is frequently the most significant expense item on revenue statements. CEOs often must resort to layoffs when cost-cutting becomes a necessity. It's the most effective of tactics, but it is also seen as a last resort. Outsourcing allows scalability to increase or decrease the available resources if specific criteria are met. A business that outsources at least a portion of its operations can cut its outsourcing partner's support staff. The cost is reduced without having to lay off.

  1. Reduce Internal Burnout

Employees still on the payroll, including management, must pick up the slack due to layoffs. While effective in the short term, this approach might lead to exhaustion and sloppy work in the long run. This counteracts the savings achieved through fewer employees and increases overall expenditures. Having access to a pool of skilled workers available to outsource, your business can avoid these negative consequences.

Conclusion featured an article entitled, "Why CIOs continue to invest in outsourcing despite the warning signs," where Forrester senior analyst Jeffrey Rajamani states, "IT outsourcing is a flourishing $92.6 billion market,... [outsourcing] partners can offer CIOs greater stability in an uncertain market while helping them to be more creative and resilient."

To keep costs down during economic instability, it's no wonder many businesses are turning to IT outsourcing as a cost-saving strategy. You can expect superior technical knowledge at a reduced price. Focusing more on your company's strengths can ultimately benefit your core staff. This will allow you to concentrate on what you do best, providing your company an advantage over its rivals by being "... more creative and resilient."

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