As the business sector welcomes the new year, companies of all sizes continue to face a wealth of challenges. From dealing with the effects of climate change on business to navigating the ongoing worker shortages, enterprises will have to adapt and reinvent their strategies to remain competitive this 2023.
In this article, we’ll take a closer look at a few global disruptions businesses will face this year. Then, we’ll discuss how taking on a hybrid offshoring plus nearshoring strategy can help your company address these obstacles.
A Look Into the Challenges and Disruptions Businesses Face in 2023
Looming U.S. Debt
For the first time in modern history, the American economy may risk defaulting on its debt in 2023. The country reached its debt limit (capped at $31.4 trillion) on January 9th, and the U.S. Treasury is taking steps to fund its debt obligations by early June.
Political analysts foresee a heated standoff between Democrats and Republicans in Congress, making it difficult to reach a deal over increasing the U.S. debt limit and creating market uncertainty. Economic activity is expected to slow down while the debt ceiling issue is being addressed.
Amid inflation, many consumers are slowing their spending habits and becoming more selective about their purchases. In a recent study, 72% of middle-class families in America report that their earnings are insufficient to keep up with the rising cost of living.
As consumers make fewer purchases, companies have also had to adjust their strategies. Due to growing economic uncertainty, many businesses, especially in the technology sector, are laying off employees to help mitigate and reduce costs.
Massive Layoffs and Shortages
Even tech giants are not immune to the effects of a weaker global economy and fears of a looming recession. As of January 18, 2023, Microsoft reported laying off 10,000 employees as a cost-cutting measure. Other prominent players planning to make deep cuts to their workforce include Amazon, Meta, and Salesforce.
While some industries are downgrading their crew, others are dealing with widespread labor shortages. The manufacturing sector, in particular, needs more skilled workers, especially those qualified and equipped to handle new technologies, tools, and innovations.
Meanwhile, businesses of all industries are also dealing with the effects of climate change. A few of the largest U.S. banks, including JPMorgan Chase, Goldman Sachs, Bank of America, and Wells Fargo, have been asked by the Federal Reserve to disclose how heat waves, floods, and other climate problems have affected their portfolios.
How an Offshoring and Nearshoring Strategy Can Help Future-Proof Your Company
The truth of running a business is that you cannot always foresee what can happen in your environment. In the blink of an eye, government regulations can change, economic and market conditions can shift, and even unforeseen weather conditions can halt your operations.
Recent global disruptions–like the COVID-19 pandemic, the Ukraine-Russia War, and “The Great Resignation”–suddenly and completely changed the status quo, forcing businesses to swim alongside changing tides or sink to the bottom.
However, the good news is that there is a way to fortify your business and prepare your operations to adapt to any challenges that may come your way: adopting an outsourcing model that blends offshore and nearshore solutions.
Offshoring and Nearshoring Strategy: Bringing the Best of Both Worlds
If you’re having trouble picturing how a hybrid outsourcing strategy can work, read this helpful advice from Matt Narciso, the Chief Executive and Managing Director of SuperStaff:
Why Choose the Philippines for Offshoring and Colombia for Nearshoring
For offshore operations, the Philippines remains one of the most cost-effective and reliable options for global businesses. Meanwhile, Colombia is becoming a top choice for U.S. companies needing a nearshore BPO provider.
In the 2022 Offshore BPO Confidence Index, Colombia and the Philippines were ranked among the ten best outsourcing destinations in the world. Colombia claimed the first spot, and the Philippines won seventh place.
Learn more about why these countries were hailed as ideal BPO locations, as well as uncover the pros and cons of each destination, through this helpful infographic:
Improve Your Business Resilience With Help From the Right BPO Provider
Today’s enterprises face the unenviable task of having to navigate a constantly evolving global marketplace. Ideally, you’ll create a reliable business continuity plan that accounts for all predictable factors while still being flexible enough to make room for unpredictable ones.
Whether your business model incorporates a solid nearshoring strategy, an offshore plan, or a blend of both, you’ll need the help of an experienced BPO partner to help you find the solution that works best for you.
SuperStaff provides a wide range of onshore, offshore, and nearshore outsourcing services tailored to your specific business needs and goals. Connect with our team, and let us help you future-proof your operations!