{"id":7126,"date":"2020-12-23T10:35:04","date_gmt":"2020-12-23T10:35:04","guid":{"rendered":"https:\/\/www.boardroomlimited.com\/my\/?p=7126"},"modified":"2023-04-20T08:16:51","modified_gmt":"2023-04-20T08:16:51","slug":"mitigating-costs-in-an-economic-downturn","status":"publish","type":"post","link":"https:\/\/www.boardroomlimited.com\/my\/2020\/12\/23\/mitigating-costs-in-an-economic-downturn\/","title":{"rendered":"Mitigating Costs in an Economic Downturn"},"content":{"rendered":"

[vc_row full_width=”stretch_row” css_animation=”fadeInLeft” el_class=”business-insights-content”][vc_column][vc_row_inner el_class=”m-t-50″][vc_column_inner][vc_column_text]The onset of the COVID-19 pandemic along with efforts to contain it has plunged much of the global economy into a recession. In April, the International Monetary Fund’s World Economic Outlook<\/a> <\/a><\/a><\/a> (WEO) projects global growth to shrink by 3 per cent. However, its October publication amended the projection to 4.9 per cent. The impact of the pandemic will continue into 2021, where the WEO projects global growth to be at 5.4 per cent, which is 6.5 per cent lower than the pre-COVID-19 projections of January 2020.[\/vc_column_text][vc_single_image image=”7136″ img_size=”large” alignment=”center” css=”.vc_custom_1609207890862{padding-top: 5px !important;padding-bottom: 5px !important;}”][vc_column_text]Looking forward, we can expect the recession to leave lasting scars despite the extraordinary efforts of governments worldwide to alleviate the situation through fiscal and monetary policy support.<\/p>\n

During these unprecedented times, companies need to take affirmative action to mitigate risk amidst the economic downturn. Crafting recession strategies to retain or expand your customer base, learning to embark on affordable yet effective marketing or even taking this opportunity to review and better optimise business operations are all practical solutions businesses can explore. However, the immediate strategy for most companies would be to adopt cost-cutting measures.<\/p>\n

In this article, we will share some of the most popular and effective measures companies can take to mitigate costs during an economic downturn.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_class=”m-t-50″][vc_column_inner][vc_custom_heading text=”Look to outsource” font_container=”tag:h4|text_align:left” use_theme_fonts=”yes” el_class=”m-b-30″][vc_column_text css=”.vc_custom_1608719317039{margin-left: 0px !important;}”]Outsourcing is when a company engages a third-party service provider to handle or manage a business function externally instead of choosing to manage the particular service in-house.<\/p>\n

Of the numerous functions that exist in a company, payroll is perhaps the one that will offer the most significant benefit when outsourced during an economic downturn. By outsourcing payroll<\/a>, your company can effectively improve its focus and expand its accessible talent pool, which are all essential to helping the company navigate through an economic recession. But most notably (and most beneficial during an economic downturn), outsourcing can reduce and control a company’s operating cost.<\/p>\n

While the actual cost-savings of outsourcing HR and payroll services may vary between businesses, the most common areas where they could come from are:<\/p>\n