Corporations are reducing their office space as they are currently in a cost-saving mode, said Ryan Masiello, VTS's chief strategy officer, co-founder

The economy is facing significant challenges as major economic headwinds are approaching. The slowdown in the tech industry, evidenced by declining business performance and layoffs, suggests that a recession may be imminent. Although these layoffs within tech companies have specific causes, they are also occurring amidst a growing sense of economic pessimism.

How are most companies dealing with this economic environment?

Cost cutting!

The primary expense for technology firms is typically employee salaries. Additionally, companies with physical offices face substantial overhead costs, particularly in areas where the cost of living, including energy expenses, is increasing rapidly in countries such as the US and Europe. This places a burden on both employers with office spaces and employees who commute daily.

What is the solution?

Hiring Remote Employees from India

More businesses are expanding their remote teams as a way to reduce expenses. By doing so, they eliminate the cost of office space, utilities, and commuting, while also improving employee productivity. By hiring talented remote workers from India, companies can achieve cost savings and tap into a pool of the top 3.5% of pre-screened professionals.

According to a report by Stanford University, remote workers showed an improvement in productivity by 5% compared to in-office workers in 2020. This trend continued to increase and reached 9% by spring 2022 due to the enhancement of remote work practices and investment in technology.