Current world events haven’t been kind to us, from the aftermath of the pandemic, ongoing conflicts, and rising fuel costs which equates to higher inflation that affects the purchasing power of currencies. Nowadays, companies are coming up with ways to save money.
Outsourcing has been around for 30 years and has become popular since then. Various companies can outsource their recruitment, accounting, and IT solutions to name a few. Thus, removing the monetary burden fully onshore departments once had on companies and giving them more flexibility to focus on their main goals.
- Lower cost due to lower labor rates.
- Increased focus on strategy/core competencies.
- Promotes growth.
- Lower investment on internal infrastructure.
- Increased pool of competent talents.
Work from home set-up
We all know what happened in 2020, a pandemic happened and caused a global lockdown. Companies were caught unprepared, forcing them to send their employees to work from their own homes. Now that the world is returning to normal, some companies saw the benefits of a WFH set-up.
- Lower operating costs in facilities.
- Lower investments on internal structure.
- Improved work/life balance (bonus for the employee-employer relationship!).
Using renewable energy/Going green
Companies can save a ton of money by switching to renewable sources and cutting reliance on global oil prices. Companies may also have a head start before legislators start to regulate traditional energy sources and increase brand awareness to environmentally conscious customers. Ultimately, supply and demand dictate the price of commodities as resources are exploited to the point of being depleted, resulting in skyrocketing price increase.
- Reduces energy cost.
- Increased preparedness for future legislation and cost.
- Increased brand awareness (bonus for the company image!).
Business Process Automation
When we hear the word “automation”, the first thing that often comes to mind is robotics. Business Process Automation (BPA) is the process of automating recurring processes through the use of software and other applications.
Simply put it this way, BPA streamlines menial tasks and allows the company to go beyond traditional data management. Companies that are utilizing this technology improve their efficiency, productivity and minimized overhead cost.
For example, Customer Relation Management (CRM), Cloud Computing, and Time Management Softwares do a lot to free up employees from those tasks, allowing them to focus on the primary goals of the company.
- Reduces the cost of labor.
- Reduces human error.
- Improves productivity.
- Improves workflow.
- Better monitoring of business processes and operations.
Constant Innovation of the Production Process or Services
Constant innovation is vital for a company’s survival. Even the Japanese have a word for it – “Kaizen” which translates to continuous improvement. In this day and age, one cannot simply use the same process again and again and expect different results. Companies learned that staying competitive can also save money, why? To put it simply, to not lose out and stay ahead of your competition, you must constantly be improving or changing established processes for the benefit of the company.
- Reduces labor cost.
- Reduces energy cost.
- Increased efficiency.
- Improved product quality.
What We Learned
To sum it up, these are some of the ways big companies save their resources. It’s up to you to decide between the points mentioned above. Ultimately, improving how you produce, consume, acquire, hire, and the way of doing business will make a difference.