Like every individual waiting for new opportunities and growth, each business may wonder what is stored for them in the business year 2024. Some may be looking for a fresh start, or some may be looking to fortify their business foundations. Whatever the position you’re in right now, as a business owner, you must prepare strategies for the effective navigation of your business in a challenging business year.
As the new business year unfolds, you must prepare well in advance to handle the potential challenges on your way and, at the same time, be able to reap the benefits this year is likely to set for you. To achieve your business goal for this business year, you must pre-examine those major factors that will have a significant impact on your business. Accordingly, prepare a business strategy that can perfectly fit the new business environment.
When talking about the global business environment, many business experts believe that the business world of 2024 is likely to spread under a cloud of uncertainty. Although we’re likely to see many similar business trends from the previous year this year, experts warn that the global market in 2024 is also likely to be volatile due to the existing geopolitical tensions in many regions and upcoming major events worldwide.
Against this backdrop, the blog aims to offer insights that can help you plan effective strategies to navigate business through this uncertain business environment in 2024. Through this blog, you’ll learn about business trends and significant factors you must consider while preparing for effective business strategies. The successful navigation of your business in 2024 will depend on how well you prepare to address those vital factors in your strategies.
Major global events and business trends in 2024
Let’s see what major global events and new developments you must expect in 2024 that will have a major impact on your business decisions and plans.
National elections in 50 countries: 2024 is a year of democracy in full swing. Nearly 50 countries, including major global economies such as the US, Russia, India, and probably the UK, are set to head for polls over the year. The outcome of these elections is likely to have a major impact on the global economy and international Ongoing.
- military wars: The ongoing Russia-Ukraine war is close to completing a year, and it’s nowhere seen that the war is likely to end soon. Additionally, the Israel-Hamas military conflict is going on and has already lasted more than two and a half months at the end of 2023. Both of these military wars have disturbed geopolitical balances and business activities in several regions, from the Middle East to Europe. The conflicts have affected global oil prices, production, and supply, leading to rising concerns about the imminent threat of an energy crisis in 2024.
- Rising tension in the US-China relationship: The existing tension between the two largest economies, the US and China is characterized by a complex blend of both political and economic factors. Both countries have been tussling in several trade disputes and military issues, turning their relationship sour. The rising tension in the US-China relationship can be a major determinant for the global economy and market in 2024 due to the existing issues ranging from trade tariffs imposition to intellectual property issues.
- Migration issues in the European Union: Several European countries are facing major issues due to the rising influx of immigrants from the neighboring regions. The rising number of immigrants in Europe is the result of frequent wars or military conflicts in the Middle East. A large size of the population had to flee from their countries and take asylum in European countries due to the ongoing wars and military tensions.
Considering these factors, many business analysts advise global companies to take precautions while mapping their business plans and strategies. Many analysts warn about the uncertainties of geopolitical and economic conditions that prevail across countries.
Also, you must understand the similar business trends that are likely to continue in 2024 and take them into account for better business decisions and strategies.
- Remote working: With the increasing expansion of the gig economy worldwide, remote working setups are likely to persist longer. Considering the benefits of remote working, like saving on travel expenses and work-life balance, remote professionals usually prefer flexible work arrangements or hybrid workplaces.
- Rising demand for research-oriented skills: With the rising footprint of artificial intelligence (AI) across industries, professionals with research-based skills are likely to be in global demand. From the pharmaceutical to the energy sectors, global companies will also continue investing in human intelligence and looking for a workforce with research knowledge. As we move on to the AI era, the importance of research knowledge is gaining prominence. The surge in demand for remote workers with research skills is due to rising skill gap issues across industries. Governments across countries are increasingly offering various initiatives and policies that allow cost-reduction in hiring a remote workforce with research skills.
Two parameters for an effective business strategy for uncertain economic times
In an uncertain business environment, global companies often focus on two critical aspects—minimizing costs and finding the right workforce to fill in skill gaps. These are the two areas you must focus on when preparing a business strategy for uncertain times, like 2024. Once you have a good strategy around these two factors, you can swiftly navigate your business and stay afloat during turbulent times. It’s an ideal way for global companies, especially those from the West, to explore different cost-reduction options by hiring talents outside of their home countries.
The main reason is that there is a substantial cost reduction when hiring talent outside your home country. Additionally, you can find and hire talent with more suitable skills from other countries.
However, the most challenging task for businesses is deciding on the right location and the right business model that can fulfill their two basic needs. Here, we suggest India can be the right location for hiring your top talents, and you can hire them at reduced costs.
Why is India a key destination for hiring talent and cost optimization in 2024?
You may wonder how and why India can be a promising business destination in 2024. The main reason is that India remains one of the strongest economies in the current global scenario and provides various opportunities for foreign companies to hire top talents across industries.
- Talent availability: The skill gap issue due to the limited availability of a talented workforce is a significant challenge, especially for many countries in the West. With the rising number of Indian professionals with English proficiency and remote professionals having technical and research skills in India, you can easily get access to a large pool of Indian talents and hire them. The country continues to be a major business hub for tapping talents with research and development (R&D) knowledge across industries. For instance, India has become the major investment destination for R&D in various industries, especially the pharmaceutical sector. The rising growth of clinical research organizations (CROs) in India is the result of the growing demand for pharmaceutical research and drug discoveries.
- Cost reduction: Another core concern for businesses aiming for business expansion is cost reduction. It’ll be more expensive to hire employees in your home country than to hire talent from India for the same job profile. For instance, hiring a software developer in India will save you more than 2-3 times the cost of hiring the same in many Western countries. During the turbulent times of international markets, a cost-saving approach and strategy will be the most suitable option to stay afloat.
- Government supports and initiatives: Over the years, the Indian government has been taking up several initiatives and implementing policies to ease doing business in India for foreign companies. With such developments, India has witnessed a rising foreign direct investment (FDI) flow across industries. The country has become a major target for business establishments due to the wide popularity of the China Plus One Strategy, also known as Plus One or C+1.
- Existing proven business models for remote working: The Indian market and talent are properly tuned to the remote working environment. India has become a hub for getting major business projects done due to the wide presence of proven business models, such as outsourcing, working with independent contractors, and EOR services. Many global businesses see India as a reservoir of highly skilled talent and a haven for cost-saving when engaging in remote working.
Which business model is most suitable for uncertain business times in 2024?
Outsourcing, hiring independent contractors, subsidiary incorporation, and working with employer of record (EOR) services are popular business models for expanding a team or business operation in India. Among these models, you will find that EOR services offer comparative advantages over other options due to their unique features and characteristics. Let’s explore why EOR is the better choice for you in 2024.
- Cost-saving business model: EOR services offer the advantage of cost-effectiveness in setting your business footprint in India. Compared to other business models, the EOR model will help you save on the cost of building remote teams in India. Also, with EOR assistance and its network, you can easily hire Indian talent who can fill the skill gap and fulfill your business needs. Wide access to top Indian professionals is also an additional benefit of using EOR services, besides being cost-beneficial.
- Easy hiring: Talent acquisition is one of the core services available when using EOR services. With their extensive knowledge and network of the local market, using EOR assistance, you can hire top talent from the target location easily and at a reduced cost at the same time. Your EOR partner will handle a range of hiring activities, from scouting and screening the right candidates for the job profiles to onboarding the selected candidates on your behalf.
- Easy to enter and exit the market: Using EOR services, an overseas business can easily enter the Indian market without going through administrative hurdles. EOR services facilitate a platform where an overseas company can build a team without establishing a legal entity in the country. Also, you can easily test the water before forming a subsidiary company. In cases where you find the Indian market isn’t suitable for your business domain or industry, you can easily exit hassle-free. Due to this advantage, EOR offers a reliable solution to build remote teams in uncertain times.
- No fixed cost commitment: Opting for EOR services doesn’t require a hefty investment or long-term financial commitment. EORs already have all the established network, infrastructure, and service support required to start a remote team operation in the target country. Partnering with EORs means you save money, which would otherwise be spent on forming a subsidiary company. With EOR assistance, you can find a suitable workplace and access easy support for your remote employees. As a result, your team can be quickly operational.
Additionally, you can hand over the human resources (HR) responsibilities of your overseas employees to the EOR partner so that you have more time to focus on your core business activities. Your EOR partner will handle HR services such as payroll, employee benefits management, taxation, and office infrastructure support on your behalf.
Remunance as a local guide for seamless entry into the Indian market
As a company committed to supporting foreign companies to build successful India teams and subsidiaries, Remunance can be your hand-holding guide for your business presence in the country. We have a strong team of HR experts who handle all the responsibilities for hiring top talent in India that rightly fits your job requirements. Over a short time, Remuance has achieved the milestone of hiring more than 800 Indian employees situated in 34 cities for our clients.