Inflationary pressures that have affected ordinary South Africans’ wallets in recent years have also had a substantial impact on businesses.
With load shedding, a stagnating economy, and a weak rand already posing substantial challenges, inflation has pushed up supply chain prices and reduced profit margins.
In the face of these challenges, many companies have increased their product and service pricing.
However, that can only go you so far before it becomes counter-productive. This implies that organisations must find methods to reduce expenses whenever feasible.
“Fortunately, there are numerous simple cost-saving initiatives that companies can take without resorting to extreme measures such as employee retrenchments,” said the chief technology officer of Euphoria Telecom, Nic Laschinger.
He advised businesses to try these three strategies to minimise expenses in an inflationary economy:
Investigate AI tools that can free up your people’s time for higher-value actions
While considerable ink and airtime has been spent discussing the future possibilities of artificial intelligence (AI) across a wide range of businesses, it is already playing an important role in some.
Consider contact centres, for example. AI may be used to route consumers to expert agents.
However, it can also help operators handle client enquiries more efficiently.
As the underlying technology underpinning AI advances, its power to create savings and efficiency will only increase. In fact, US technology research firm, Gartner, expects that AI solutions will save contact centres $80 billion in 2026.
However, current AI techniques may be used to improve efficiency in areas other than contact centres.
Whether it’s the AI-powered analytics and machine learning capabilities in tools like HubSpot and Salesforce (along with their sales chatbots) or ChatGPT’s research capabilities, there is a wide range of widely used business tools that improve a company’s efficiency and allow employees to focus on higher-value tasks like strategic thinking and problem solving.
Take your technology to the cloud
Most people are already aware of the storage benefits that the cloud may provide.
Businesses may store and retrieve data more effectively (from wherever their staff are) without incurring the expenditures associated with on-premises storage, such as infrastructure, security, and backup power.
However, the benefits have long gone beyond storage. Cloud-based productivity suites, for example, enable teams to work more effectively on projects.
These productivity suites and other types of cloud-based software also allow organisations to grow up rapidly and economically, even if only for the season.
It’s hardly surprising, however, that a WorldWideWorx research conducted in 2023 discovered that 41% of African organisations consider business efficiency to be one of the most important benefits of cloud technology.
Manage expenses and take advantage of tax breaks
Not all savings and efficiencies must be technology driven. Businesses might also consider how to better manage their experiences.
Companies with hybrid workforces, for example, may choose smaller, more cheap office space (or completely eliminate the cost of an office by becoming wholly remote).
Meanwhile, on the technology front, they might consider whether there are less expensive alternatives to the software they’re using that provide the same value.
Finally, firms may ensure that they make full use of any available tax benefits, such as the Employment Tax Incentive (ETI) and the Skills Development Levy (SDL).
Businesses may contribute even more to the South African economy’s growth if they are able to take advantage of these benefits.
In a key election year, the South African corporate environment is unlikely to grow much more stable. As a result, businesses must do everything they can to decrease expenses, beginning with the easy steps indicated above.
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