Achieve significant outsourcing cost savings with Cloudstaff’s specialized roles
As the U.S. economy faces potential headwinds, businesses are increasingly looking for ways to maintain competitiveness without sacrificing quality.
Reuters reports a 40% chance of a recession in 2025, up from 30% earlier this year. Retail sales saw only a modest 0.2% increase in February, following a 1.2% decline in January, indicating cautious consumer spending.
These economic challenges are driving companies to explore cost-effective solutions to safeguard their operations. One of the most effective strategies to tackle this is through outsourcing for cost savings.
In this article, we’ll introduce Cloudstaff’s smarter, more reliable outsourcing —a strategic approach that combines efficiency with security.
The goal is to not only help you recession-proof your business but also provide insights on how to reduce overhead costs effectively.
Impacts of recession on US businesses
A recession can have far-reaching effects on US businesses of all sizes. As economic conditions tighten, companies are forced to adapt quickly to stay afloat.
Here are some of the effects a recession can have on businesses in the country:
Cost-cutting measures
To weather the financial storm, firms often implement cost-cutting measures, such as layoffs, reduced working hours, or frozen hiring.
While these steps may help reduce expenses in the short term, they can also hurt employee morale and productivity, potentially leading to even more challenges.
Reduced access to credit
Banks and financial institutions are generally more cautious during a recession, making it harder for businesses to secure loans or lines of credit. With restricted access to capital, companies may struggle to fund expansion, invest in innovation, or even maintain daily operations.
Supply chain disruptions
Recessions often lead to disruptions in supply chains due to reduced production and transportation issues. Organizations may face delays, higher costs for raw materials, or limited inventory availability, which can impact their ability to meet customer demand.
Given these challenges, more companies are turning to third-party providers as a strategic solution to maintain growth.
Working with external teams from outsourcing powerhouses like the Philippines allows firms to continue operations at a lower cost while focusing on their core strengths.
Outsourcing cost savings: US onshore hiring vs. Hiring with Cloudstaff
When you hire U.S. staff, you’re often paying for not just salaries but also higher overheads related to benefits, taxes, and office space.
Salaries for U.S. employees are higher, which can make it difficult for businesses to keep costs manageable, especially during economic downturns.
On the other hand, outsourcing to reputable third-party service providers in the Philippines, such as Cloudstaff, allows businesses to tap into a skilled workforce at a fraction of the cost.
US businesses are opting to build their remote teams from the country for the following reasons:
- The Philippines offers a strong pool of English-speaking professionals with expertise in areas like customer service, IT, accounting, and other specialized roles.
- Hiring remote staff can reduce overhead costs, including office space and equipment.
- While there may be concerns about time zone differences, modern communication tools and flexible work hours make collaboration with virtual teams more seamless than ever.
- The Philippines also boasts a high level of work ethic and a strong cultural affinity with the U.S., making it an ideal outsourcing destination.
Here’s a cost comparison of hiring onshore in the US versus opting for Cloudstaff’s seasoned experts based in the Philippines:
| Position (Intermediate) | US Onshore Hiring | Hiring with Cloudstaff |
| Virtual assistant | $3,871 | $1,628 |
| Customer service representative | $5,588 | $1,471 |
| Accounting officer | $6,190 | $1,848 |
| CPA | $8,251 | $1,738 |
| Technical support representative | $4,060 | $1,738 |
As the table shows, building a Philippine workforce helps U.S. businesses take full advantage of outsourcing cost savings in terms of overhead expenses. When hiring U.S. onshore, firms must factor in hiring costs, training expenses, equipment, infrastructure, benefits, and more into their in-house costs.
Whereas with Cloudstaff, it handles all of these aspects, enabling companies to allocate resources more efficiently while maintaining high-quality services and operations.
It’s also important to note that the fees for Cloudstaff roles, as shown in the table, include both salary and management fees, and these are indicative figures.
Hiring remote specialists from the Philippines means businesses can remain flexible and resilient in the face of economic uncertainty.
Maximize outsourcing cost savings with Cloudstaff
Cloudstaff offers a smarter outsourcing solution designed to meet the future needs of businesses.
Future forward
It gives firms access to a global talent pool of over 700,000 professionals.
Unlike traditional outsourcing, businesses directly manage their full-time employees, while Cloudstaff supports seamless employment and invests in achieving great results.
Ethical
Cloudstaff is committed to ethical business practices. It boasts an award-winning culture, high employee engagement, and work-from-home support, leading to impressive retention and staff experiences.
Enterprise-grade security
Cloudstaff provides enterprise-grade security. It takes a comprehensive approach to protecting intellectual property so businesses can focus on maximizing the potential of their remote teams.
Customer obsessed
More than just an Employer of Record (EOR), Cloudstaff partners with clients through every stage, offering recruitment, onboarding, 24/7 support, and tech optimization.
Cloudstaff’s customer-obsessed approach helps businesses achieve success through smarter, future-forward outsourcing.
AI enablement
Cloudstaff has been investing in AI for years, blending people and technology to drive innovation in the workplace.
Led by former Google AI expert Rick Lyons, the Cloudstaff team offers tools like AllChat and StudioAI, built on secure managed PCs and top-level security. These solutions help businesses access AI benefits and contribute to developing future innovations.
Get in touch with Cloudstaff’s experts to explore how they can help recession-proof your business!
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