Inflation, fueled by supply-side shortages, is strongly hitting the U.S. economy. In addition, policy changes have further triggered labor shortages exacerbating the already complicated situation. As a result, businesses must rethink their competitive strategies for 2023.
When done correctly, outsourcing can be a great way to protect your business from inflation and prepare against recession. This operational strategy allows businesses to: lower costs, access better talent, improve process efficiency, and enable growth.
Inflation has several implications for businesses. First, it leads to fluctuation in demand for a business’s products and services based on the availability of cash in clients’ hands and challenges in the supply chain. The labor shortage adds to this problem, and inflation further increases productivity loss.
So, in these rocky times, outsourcing is an effective way to mitigate the challenges and complexities of running a business. It also increases the efficiency of processes and improves overall business capacity.
These are five ways in which outsourcing can protect your company from inflation:
- Focus on Core Business: Inflation is an economically challenging period, and internal talent needs to focus on the core functions, which can be achieved through outsourcing efficiently. If a company has limited resources, it is advisable to outsource and divert available resources for primary functions.
- Reduce Overhead Costs: Outsourcing can strengthen the business in many ways, including reducing overhead costs. Delegating your business’s time-consuming functions to an outsourcing partner saves time and money, allowing you to focus on critical business functions.
- Work with Top Talent: Outsourcing facilitates working with top talent in every department. Hiring top talent for every department can be expensive, but having an outsourced partner with expertise and experience allows you to work with the best. Not only can your business benefit from their knowledge, but outsourcing can also greatly improve your process efficacy.
- Streamline Processes: Outsourcing is a great way to improve process efficiency, especially during periods of inflation. In this digital world, you can achieve marketing automation to enable sales and implement advanced technology through outsourcing, lowering the learning curve to increase productivity.
- Foster Better Retention: With current labor shortages, the costs of attrition have never been higher. Outsourcing to relieve pressure from your teams will not only allow them to focus on core business and streamline processes but also allow your management team to focus more on people management and retention.
- Add Scalability: Outsourcing can scale your team and strengthen your workforce without a significant capital investment. In addition, outsourcing allows you to reduce or expand per your business requirements without investing heavily in talent and equipment.
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*This blog post was written by Gabriel Negrón Meléndez, Junior Intelligence Advisor at DuartePino.
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DuartePino is a management outsourcing firm that combines in-depth customer knowledge with practical expertise in marketing, communications, brand management, and overall business strategies to help clients create sustainable business growth. Our single-source accountability comprises a unified network of Trusted Advisors with years of combined experience in their respective industries. As a result, we can provide your organization with a fresh perspective, proven processes that invest in results, and the martech tools for successful execution.
We have one primary purpose: to help Hispanic-led companies connect with growth opportunities. We do this by intentionally building relationships of trust, internally and externally, through reliability, competence, and integrity. As members of the Worldcom network, we also have quick and unfettered access to the resources of more than 80 global partners in 50 countries and six continents to work together in designing and implementing communications strategies for all key stakeholders. Today, we proudly manage over 15 marketing communications departments representing more than $1B in annual sales, and 70% are exporting to international markets.