In the wake of former Prime Minister Boris Johnson’s July departure from office, annual inflation is currently above 10%.
The British pound has registered its lowest showing against the US dollar in over 37 years.
“Skyrocketing food and energy costs 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 British startups and SMEs
The UK’s current economic problems could also force businesses to permanently shut their doors, particularly startups and small-to-medium enterprises (SMEs) still struggling to survive in the wake of the pandemic.
Businesses will need to cut corners wherever they can just to stay afloat. For these companies, business processing outsourcing (BPO) to the Philippines offers an economic lifeline to help them ride out the current economic storms, explains Mr Ellspermann.
The many benefits of BPO to the Philippines
“Outsourcing to the Philippines is no ‘best-kept secret’ for UK businesses, who have long partnered with Philippine BPO providers to cut costs, increase business efficiency, and boost revenue as well as profits,” he said.
“In fact, seven in ten companies in the UK outsource services to third parties, with 30% of UK businesses planning to outsource more by 2023. Most businesses cite cost reductions and transformation as the main reasons for outsourcing.
“The Philippine BPO industry offers small businesses many advantages over operating an in-house call centre or outsourcing to an onshore provider. A skilled and highly educated workforce, access to world-class technology and infrastructure, and an English-proficient population are attributes highly valued by companies. Additionally, the country boasts a 20-year track record of outsourcing excellence and currently ranks just behind India as the world’s second largest BPO destination.”
How outsourcing to the Philippines is a money-saving game changer for SMEs
According to Ellspermann: “Significant cost savings are the main reason companies outsource their BPO requirements to the Philippines. Since Philippine labour costs are much lower that in other countries, companies can save up to 60%.”
Additionally, BPO providers in the country cover secondary expenses like office space, equipment, technology, taxes, employee health insurance and benefits. These savings can be a game changer for small businesses, which can funnel them into resources that will contribute to healthy and substantial growth.
Enhanced focus on core business competencies
Companies typically rely on outsourced teams to handle front and back-office related tasks. This allows executives and employees to focus on essential business tasks like growing a client base, developing marketing strategies, and investing in research and development. In the long run, BPO to the Philippines offers startups and SMEs quick, flexible, and affordable scaling and company growth.
Outsourcing to the Philippines makes good economic sense
The current British economy will most likely get worse before it gets better, and small businesses will need to be resourceful if they want to get by. BPO to the Philippines offers a high ROI with little risk for cash-starved British startups and SMEs, concludes Ellspermann.
“The cost-cutting benefits highlighted here can help UK-based SMEs survive the current turbulent economic climate and provide a cost-effective way to scale, grow, and help ensure long-term success,” he said.