Global SMEs and Uncertainty: Outsource to the Philippines

by | 26 Jun, 2025 | Uncategorized | 0 comments

Navigating Global Economic Uncertainty: A Strategic Shield for SMEs

Much attention has been paid to large-scale macroeconomic shifts instigated by President Trump, yet the most pronounced and enduring impacts have been felt at the SME level. Small and medium-sized businesses in the UK, Australia, and beyond now face rising costs, trade uncertainty, and a changing competitive landscape. Fortunately, smart strategies like outsourcing to the Philippines offer viable pathways to survive and thrive.

Global Trade Shifts: The Impact on SMEs

Trump’s tariffs, especially those targeting China, have disrupted global trade and pushed up costs. SMEs relying on Chinese imports for raw materials or finished goods are experiencing financial strain. This includes not just US businesses, but trading partners like the UK and Australia, whose economies are deeply integrated with global supply chains.

UK SMEs importing components from China have been caught in the crossfire, as rising US-China trade tensions force up global prices.

Australian SMEs, especially in manufacturing and technology sectors, face longer lead times and higher procurement costs due to diverted supply chains and higher freight charges.

Cost Pressures: Why Traditional SME Solutions Fall Short

If an SME wishes to continue with a full ‘in-country’ employee business model, then there are really only three options open for business leaders to mitigate cost pressures. And they are not super attractive. The options:

1. Absorb costs

Pros:

  • Maintains customer trust and market competitiveness.
  • Avoids shock to demand from sudden price hikes.

Cons:

  • Cuts into (possibly already narrow) profit margins.
  • Unsustainable long-term costs continue to rise.

2. Passing costs on to customers

Pros:

  • Preserves profit margins.
  • Helps to maintain business operations and staffing levels.

Cons:

  • Risks losing customers, especially in price-sensitive markets.
  • May open opportunities for cheaper competitors to undercut.

3. Negotiating with suppliers

Pros:

  • Can reduce unit costs, especially with long-term contracts.

Cons:

  • Small businesses may lack leverage.
  • Supplier quality or reliability may be compromised due to reduced prices.

Outsourcing to the Philippines: Your Strategic Advantage

One of the most powerful tools SMEs can use to counter these economic pressures is outsourcing—especially to a high-skill, low-cost destination like the Philippines. Here’s how:

1. Outsourcing accounting services

SMEs in the UK and Australia are increasingly turning to outsourcing accounting services to manage rising domestic labor costs. The Philippines offers:

  • Chartered accountants trained in IFRS and fluent in English.
  • Cost savings of up to 70% over hiring locally.
  • Scalability—it’s relatively fast (vs. UK and AU) to scale teams up or down.

Whether it’s bookkeeping, payroll, or compliance, offshore accounting provides UK and Australian firms with better margins and reduced administrative burdens.

2. Offshore accounting for regulatory efficiency

Both UK and Australian SMEs face strict financial reporting standards (e.g., Making Tax Digital in the UK, or STP reporting in Australia). Offshore accounting teams in the Philippines can seamlessly support these regulations using cloud-based tools like Xero, MYOB, and QuickBooks.

3. Hiring remote employees to reduce overheads associated with internal functions.

Hiring a remote employee in the Philippines—whether in accounting, customer service, digital marketing, or operations—helps SMEs:

  • Save on office space, insurance, and utilities.
  • Fill skill gaps in areas like data analytics or IT support.
  • Operate extended hours with time zone advantages.

This has been particularly attractive to Australian SMEs, where similar time zones enable smooth collaboration and communication.

4. Outsource IT functions

IT departments are costly to staff locally, especially for SMEs. With outsourced IT solutions based in the Philippines, businesses can:

  • Access 24/7 tech support.
  • Enhance cybersecurity with skilled, certified engineers.
  • Build custom software or maintain infrastructure for less than half the domestic cost.

Yempo enables UK and Australian businesses from a broad range of sectors to outsource their IT (by adding dedicated, lower cost, remote employees to their teams). Our clients can accelerate innovation and keep their operational costs low.

Beyond Cost Savings: Outsourcing as a Survival Strategy

Donald Trump’s reshaping of the global economy has imposed lasting costs on SMEs far beyond US borders. Supply chain instability, currency swings, and tariff-driven inflation have put pressure on businesses to adapt or risk decline.

Outsourcing to the Philippines presents a strategic opportunity. Whether through offshore accounting, hiring remote employees, or choosing to outsource IT, SMEs can counteract rising costs, increase efficiency, and remain competitive on a global scale.

In times of uncertainty, smart use of remote employees isn’t just a cost-saving tactic – it’s a survival strategy.

Partner with Yempo for Success

If your current outsourcing provider struggles to deliver loyal, qualified talent, it’s time to switch to Yempo. Our proven track record, client testimonials, and employee-focused approach make us the ideal partner for outsourcing to the Philippines.

Book a quick chat with us today, to know more about our best practices in providing offshore accounting and IT staff from the Philippines – or shoot us an email at [email protected]. We are happy to answer your questions!

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