What if outsourcing would allow companies to efficiently get through this economic recession? This is the idea that Forbes seems to put forward, in an article posted on September 26th. Here’s what you need to know.
What are the usual consequences of an economic recession for a company?
According to Investopedia (https://www.investopedia.com/articles/economics/08/recession-affecting-business.asp ):
While recessions can have disparate effects on different companies, some difficulties are predictable depending on the type and size of the company. A small consulting firm may experience cash flow problems when customers delay paying their bills, while a Fortune 500 company may be able to save money by cutting jobs and getting better terms from suppliers.
Understanding how an economic downturn can affect your company or business can help ensure that it does not become one of the victims of the next recession.
The key points to remember
- Recessions are large, widespread and sustained contractions in economic activity, marked by declines in gross domestic product (GDP).
- Businesses, both large and small, face declining sales and profits during recessions.
- Their cost-cutting efforts may include layoffs and cuts in capital expenditures, marketing and research.
- Recessions can restrict access to credit, slow collections and cause business failures.
- Small businesses face many of the same recession risks as large companies, but their lack of scale makes them more vulnerable and increases the risk of failure in a recession.
How does outsourcing help overcome the recession?
In its article, Forbes points out that outsourcing allows companies to position themselves favorably for the demands imposed by a recession. This strategy proves to be particularly advantageous in several ways.
By allowing the company to save on costs
The company is measured by the money it has earned, but also by the money it has saved. In this sense, cost savings is a key variable in the decision to outsource. In times of recession, when revenues begin to take a hit, the company needs to streamline its expenses even more, a streamlining made possible by outsourcing.
Allowing resources to be more flexible
In many industries, labour has traditionally been the largest expense item on the income statement. When it’s time to cut costs, to avoid laying off staff, outsourcing makes it possible to increase AND decrease resources quickly and easily as needed.
By significantly reducing burnout and errors
Laying off staff inevitably means that the remaining resources, including at the management level, find themselves taking on more tasks and responsibilities. While this strategy is valid in the very short term, when leveraged in excess by the company, it naturally leads to burnout, as well as the occurrence of errors. These two factors alone increase costs and negate the initial benefit of reducing staff. Outsourcing provides the opportunity to draw on an ever-available pool of outside talent, protecting the company from these negative side effects.
Introducing remote work into the way the business operates
The Covid-19 pandemic has made remote work a part of the business world. At ProContact, we take care of the following for your company
- Telephone reception;
- Remote secretary services;
- Polls, surveys, satisfaction studies;
- Remote marketing and prospecting (appointment setting, prospecting…);
- Qualification of files;
- Management and enrichment of databases;
- Customer loyalty;
- Technical assistance (hotline, webhelp, technical support);
- After-sales service, customer service;
- B2B / B2C prospecting;
- Customer relations;
- CRM tool and software;
- Satisfaction surveys;
- Human resources ;
- Digital outsourcing
For the most complete coverage of your needs, count on our Digital Service to answer your needs in
- Maintenance / redesign of websites;
- Management of e-commerce or social networks;
- Processing of files;
- Design & graphic design;
- Or content creation.
How to outsource during a recession?
Outsourcing is a team effort. Forbes guides you through the process:
Identify your needs
Many B2B contracts fail due to a lack of clarity on the part of the client about their requirements and expectations. Outsourcing is not a magic trick! For concrete and positive results, define clear requirements from the start, including the definition of a corporate consensus on the strategy.
Define the measurement criteria
The business plan for outsourcing should articulate flexible metrics to evaluate the success or failure of the project. This will also provide clarity to the potential partner.
Search for your outsourcing provider
Once the outsourcing plan has been put together internally, it’s time to prospect for the right provider who will be invested in your project and truly care about your company’s interests. Network, spread the word in the right circles, attend outsourcing industry events, contact industry associations, issue an RFP and search online or through a consultant. There is no shortage of ways to find a serious and reliable provider!
How can we help you at ProContact? Outsourcing is our business, even in times of recession: count on us to help you plan, set your objectives and targets! At ProContact, we work closely with you to include this solution in your business strategy. We can offer you an unprecedented adaptation of your way of working thanks to the arrival of resources located elsewhere, without losing time, money or quality.
ProContact is more than a contact centre. Thanks to trained, qualified, hand-picked, multilingual agents, we enable the companies that choose us to gain credibility and above all to satisfy their customers, regardless of the situation and in complete transparency.
Outsourcing has become a tangible and concrete business strategy for the development of the company. To find out more about our services and for a quality partnership, click on our contact form, send us an e-mail or call us on (+33) 1 77 75 04 50.