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Can UCaaS Recession-Proof Your Business?


Global recessions, cost of living crises, and economic turmoil are all causing issues for business leaders and consumers alike. At a time when profits are dwindling, and uncertainty is plaguing the marketplace, many companies are cutting down on purchases, and doing their best to minimize operational expenditure.

So, what does this mean for UCaaS?

For years, UCaaS adoption has been growing at a steady pace, driven by an increasing demand for the scalability and flexibility of the cloud. During the initial pandemic year of 2020, IDC found UCaaS and hosted voice adoption grow more than usual (26.1% year over year). Now, experts are beginning to explore the concept of UCaaS being the ultimate tool for “recession-proofing” brands.

Here’s why UCaaS adoption levels are still growing, even in a recession, and why a UCaaS strategy might be the best way to preserve your company heading into 2023.

The Impact of the Recession on UCaaS Adoption

Research shows countless companies have reduced their spending on technology and digital transformation initiatives this year, as they struggle to keep up with changing macro-economic challenges. However, UCaaS adoption seems to be unhampered by this trend.

In a post-pandemic landscape, where employees are demanding more efficient and productive tools from their business leaders, and consumer expectations are growing, UCaaS is on the rise. Around 91% of SMBs now say they consider voice and advanced communication services to be essential to the operation of their organization.

Indeed, according to a study conducted by communications company Jabra and analysts Frost & Sullivan found the recession has actually driven increased adoption of Unified Communications tools. According to the report, 57% of companies said the recession was a primary reason for their decision to implement UC. What’s more, brands implementing unified communications expect to see results fast.

Around 80% of the respondents said they expected to see a return on their investment within two years, whereas 25% said they were expecting an ROI within as little as 6 months. The demand for UCaaS stems from a number of factors, including increased need for analytical tools, enhanced communication services, and collaboration opportunities.

The Recession-Proofing Benefits of UCaaS

Adopting UCaaS solutions isn’t just a necessity to deal with changing demands right now. It’s also an important part of making sure companies can continue to thrive in the future economic climate. The often-shared benefits of UCaaS have a direct impact on how effective companies are likely to be at tackling the recession in the months ahead.

For instance, some of the major advantages UCaaS offers for recession-proofing include:

  • Support for flexible/hybrid working: Research conducted by Forbes has found employees working from home are 20% happier than those who don’t. Allowing employees to work from home makes it easier for companies to attract a wider range of talent. Additionally, it can significantly reduce the operating costs associated with running a larger office.
  • Improved analytics: Access to UCaaS tools often comes with support for reporting and analytical features designed to boost business intelligence. The right platforms can provide an end-to-end overview of business processes, so they can make more intelligent decisions about how to use their budget going forward. This can lead to enhanced resource management, and reduced expenditure among brands.
  • Improved scalability: The scalable nature of UCaaS solutions in the cloud isn’t just a useful feature for companies who need to expand and grow quickly. It can also be incredibly helpful for companies who might need to cut back on their expenses during difficult times. Companies can reduce the UCaaS features they’re using at any given time, and add new functionality whenever they choose.
  • Cost savings: Perhaps the biggest benefit of UCaaS for those facing a recession, is the cost savings it can offer. Aside from the ability to save money on operating expenses thanks to remote employees, companies can also leverage cheaper maintenance and initial investment costs. Implementing a UCaaS solution is often a lot more affordable than paying for a brand-new in-house communication strategy.
  • Better business agility: To thrive in a changing marketplace, companies will need to be able to adjust their business strategies quickly to suit changing customer and employee expectations. UCaaS supports this higher level of agility, by making it easier to add and remove new technologies as they emerge. Companies can easily invest in new solutions, from AI analytics and chatbots, to 5G mobility.

UCaaS Can Help to Future Proof Your Business

While no technology can guarantee a company protection from macro-economic changes and recessions, some tools are more suited to preserve a company’s performance during difficult times. With UCaaS solutions, business leaders can access the flexible and scalable environment they need for efficient and cost-effective communication.

Even as digital spending initiatives continue to falter, the continued adoption of UCaaS demonstrates just how valuable the right platform can be for any business.