Outsourcing Curbs Labor Costs Post-Pandemic

0
Outsourcing Curbs Labor Costs Post-Pandemic
Firmbee / Pixabay

According to a new report from Babson College, last year, one-half of entrepreneurs said they chose to become entrepreneurs because they struggled to find employment.  This was a 22% increase from 2019.  Also, 54% of entrepreneurs and 43% of small business owners reported that along with COVID-19 came new business opportunities for them. (1)  The US Census Bureau reports that Americans filed paperwork to start 4.3 million businesses last year.  This is a 24 percent increase from one year prior, and it is predicted that this pattern will continue in 2021.(2)

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q3 2021 hedge fund letters, conferences and more

Leon Cooperman Likes These Real Estate, Credit And Private Equity Funds

InvestMany famous hedge fund managers engage in philanthropy, often through their own foundations. Leon Cooperman of Omega Advisors founded his foundation with his wife Toby, and he invested the foundation's funds into many hedge funds and other assets. Q3 2021 hedge fund letters, conferences and more Here are Leon Cooperman's favorite hedge funds based on Read More

The Pressures That Come With The Startup Boom...

  • The startup boom is hindered by the shortage of workers that the United States is experiencing, which makes this a very important time to outsource top-ranked Indian workers. – Neelesh Rangwani, founder of Delhi-based virtual assistant provider Wishup
  • Accelerated growth in the early days of a new business can lead to unanticipated complications and expenses, overwhelmed employees and a decrease in productivity.
  • There are over 10 million jobs open in the US – more than a million more jobs than the number of unemployed Americans.  Partly as a result, small business owners say there’s open positions they haven’t been able to fill for at least three months. – Neelesh Rangwani
  • Over 40% of small businesses are experiencing demand for higher wages.(3)
  • Total cost of acquiring new worker, from application stage to employment and training, is estimated $4,000 per employee. (4)
  • Employers must also meet ongoing expenses of office space, security, and ancillary expenses such as coffee, which by itself runs an average $50 to $125 per employee each year.(5)

Outsourcing Is An Attractive Alternative

An attractive alternative for these employers is to find and maintain team of virtual employees:

“To flourish, these startup companies must be able to staff up quickly enough to keep up with growth while also controlling cost.  India’s cadre of highly trained and qualified English-speaking remote workers can help U.S. entrepreneurs meet these needs.” Neelesh Rangwani
Indian virtual employee providers still face challenges in making the case for their services to American employers, such as their legacy of ineffective and suboptimal call-center employees.  But this problem is being quickly solved by companies like Rangwani’s Wishup through better training and vetting of employees.  For Rangwani’s company, high selectivity is a vital characteristic of their process: Only about 2% of applicants are chosen during the selection process and become virtual staff members for U.S. companies.

According to a recent study, 74% of U.S. companies outsource IT, 52% outsource HR, 43% outsource procurement, and 39% outsource finance.(6) Outsourcing key business functions is an established fact of life in American business, and outsourcing exponentially expands talent pool:

“We live in a global economy, for talent as well as for merchandise, and India is increasingly a top-level provider of business services.  Moreover, Indians applaud the current American entrepreneurial boom and stand ready to help it meet all of its plans and goals.” – Neelesh Rangwani


About Wishup

Wishup is a virtual assistant staffing agency that connects a talented pool of individuals with business owners/entrepreneurs. They work together towards a common goal to achieve business growth. Wishup’s dedicated Virtual Assistants work with the hiring company on a one-on-one basis, directly assigning tasks to them. Trained in more than 50 tasks in-house, Wishup’s Virtual Assistants are ready from Day 1. Only the top 1-2% of total applicants make the cut. For more information, visit www.wishup.co

About Neelesh Rangwani

Neelesh Rangwani, the driving force behind the company, is responsible for taking strategic decisions on its business model, revenue model, introduction of new business lines etc. along with focusing on branding and customer acquisition. A B.Tech and M.Tech graduate in Mechanical Engineering from IIT Madras, Neelesh kick started his career as a management consultant at KPMG but spent a major portion of his professional life in digital advertising and media buying in the consumer service industry with online platforms like FabFurnish.com and ShopWings. Under his leadership at FabFurnish as a Marketing Head, the ecommerce store touched an annual revenue of INR 100 cr. Being a skilled professional in Digital Marketing, Growth Strategies, Product Management, Customer Relationship Management (CRM) and Startups, Neelesh has also worked as a Digital Marketing Trainer with Asia’s leading online training company, Digital Vidya.

Updated on

No posts to display