Following the departure of former Prime Minister Boris Johnson in July, annual inflation is currently above 10%.
The British pound recorded its weakest performance against the US dollar in more than 37 years.
“Soaring food and energy prices have compounded the inflation problem, and the Bank of England estimates inflation could hit 13% if prices continue to rise,” says Ralf Ellspermann , CEO of PITON-Global, a mid-sized BPO in the Philippines.
The threat to UK startups and SMEs
The UK’s current economic problems could also force businesses to shut down permanently, especially startups and small and medium-sized enterprises (SMEs) still struggling to survive in the wake of the pandemic.
Businesses will have to cut corners wherever they can just to stay afloat. For these companies, business processing outsourcing (BPO) in the Philippines offers an economic lifeline to help them weather the current economic storms, says Ellspermann.
The Many Benefits of BPO in the Philippines
“Outsourcing to the Philippines is not a ‘well-kept secret’ for UK businesses, which have long partnered with Philippine BPO providers to reduce costs, increase business efficiency and increase revenue and profits,” he said.
“In fact, seven out of ten businesses in the UK outsource services to third parties, and 30% of UK businesses plan to outsource more by 2023. Most businesses cite cost reductions and transformation as main reasons for outsourcing.
“The Philippine BPO industry offers many advantages for small businesses over operating an in-house call center or outsourcing to an onshore provider. A skilled and highly educated workforce, access to world-class technology and infrastructure, and an English-speaking population are attributes highly valued by businesses. Additionally, the country has a 20-year track record of excellence in outsourcing and currently ranks second only to India as the second largest BPO destination in the world.
How Outsourcing to the Philippines is a Game Changer in Savings for SMEs
According to Ellspermann, “Significant cost savings are the main reason companies outsource their BPO needs to the Philippines. Since labor costs in the Philippines are much lower than in other countries, companies can save up to 60%.”
Additionally, BPO providers nationwide cover secondary expenses such as office space, equipment, technology, taxes, employee health insurance, and benefits. These savings can be a game-changer for small businesses, which can channel them into resources that will contribute to healthy and substantial growth.
Increased focus on core business skills
Businesses typically rely on outsourced teams to handle front and back office related tasks. This allows executives and employees to focus on core business tasks such as growing a customer base, developing marketing strategies, and investing in research and development. Long-term, BPO in the Philippines offers startups and SMEs fast, flexible and affordable business scale and growth.
Outsourcing to the Philippines makes economic sense
The current UK economy is very likely to get worse before it gets better, and small businesses will need to be resourceful if they are to survive. BPO in the Philippines offers high return on investment with little risk for cash-strapped UK startups and SMEs, Ellspermann concludes.
“The cost saving benefits highlighted here can help UK-based SMEs survive the current turbulent economic climate and provide a cost-effective way to grow, grow and help ensure long-term success. “, did he declare.