TENNILLE BELL | Outsourcing aspects of your business could see you thrive

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SA has one of the highest unemployment rates in the world and businesses that are struggling now may not be able to retain their workforce each time the National Minimum Wage is increased.

South Africa is seeking to employ half a million people in the next eight years as international companies look to the country for support.In 2022, the National Minimum Wage was adjusted from R21,69 to R23,19 for each ordinary hour worked with effect from March 1 2022. This increase was welcomed by employees struggling under rising food and fuel costs, but businesses had to dig deep to make up the difference.

SA has one of the highest unemployment rates in the world and businesses that are struggling now may not be able to retain their workforce each time the NMW is increased. Inflation will also rise and the risk of job losses in an economy with an already soaring unemployment rate will be high, as enterprises try to balance the books while increasing production.

So how can businesses take control over their costs without compromising quality, risking jobs, or hiking their prices excessively? The biggest expense in any business are costs related to human resources and distribution. While it might seem counter-intuitive, the most effective way to reduce costs isn’t to spend less, it is to improve efficiencies – for example, decreasing waste can have a sizeable impact on profitability.

So how does a BPO help businesses raise productivity and cut costs? At its core, a BPO solution will improve efficiencies and output because it’s based on goal-driven results. BPO is about more than outsourcing labour. It’s about understanding how the business works and making process improvements. A BPO provider will bring in their specialists to conduct time-and-motion studies and carry out process re-engineering in order to increase output without increasing headcount.

 

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