10+ Successful Outsourcing Examples
The global market for IT outsourcing services is expected to grow to $937,6 billion by 2027, which is no surprise. The number of companies using outsourcing is also rising. When cooperating with offshore developers, companies gain an extensive range of advantages that improve their performance.
Among the most common reasons businesses turn to IT outsourcing are the possibility of cutting costs, getting access to a pool of talented programmers, and focusing on core tasks. Despite the fact there is a multitude of companies that outsource, some enterprises might have concerns about managing employees on distance and achieving set goals. Nevertheless, many practices, metrics, applications, and tools enable you to mitigate the distance and work as smoothly as if it were in the office.
In this article, Qubit Labs will examine several successful outsourcing examples and examine how they handle the challenges associated with remote teams.
US Outsourcing Statistics: Companies, Destinations, and Market Size
First, let’s look at the tendencies prevalent in one of the biggest outsourcing markets in the world, the US. Regarding US outsourcing statistics, it would be worth pointing out that more than two-thirds, or 68% of American consumer product companies, outsource significant parts of their services. Although there are contradictions regarding the output of cooperation with remote employees, experts mention that it has some unwavering advantages. Companies outsourcing their services treat it as the opportunity to spend less on development by transferring non-core development activities and establishing a healthier business.
As mentioned before, a lot of modern companies decide to outsource services to save on efforts and costs associated with training, hiring, and maintaining full-time employees. The services can vary across different fields, such as accounting, human resources, advertising, and marketing. Figuring out which is the best example of outsourcing and having an idea of what kind of services can be done by an agency will help you identify opportunities for your business.
Actually, not only large enterprises can benefit from using offshore resources; for startups and SMAs, outsourcing can be a kickstart for making them stand out among other similar businesses. American companies that outsource know that spending on developing their services abroad will return in equal or, often, higher incomes than the investments in in-house employees. Some of the most common destinations for companies that outsource staffing include:
Outsourcing Examples: Top Companies
Let’s review US companies that outsource their software development services more in-depth.
Cisco Systems
This company has several beneficiaries, which appeared after it decided to outsource a large part of its services. Cisco is one of the many companies that outsource to China and India, where the Cisco IOS organization monitors and manages employees’ work.
Walmart
Most of Walmart’s retail and e-commerce operations are conducted in 27 countries worldwide. However, the most significant number of partner companies are located in Asia. Among the companies that outsource jobs, Walmart has decided to transfer accounting and financial services abroad and laid off its in-house employees in favor of remote ones. According to the latest Qubit Labs’ report, remote teams are hired by 82.9% of IT companies due to their cost-efficiency.
Apple
One of the most notable examples of companies that outsource their services is Apple, which designs its products in California while manufacturing occurs in China, Mongolia, Korea, and Taiwan. The main reasons for transferring its services to other countries are saving time and costs. If manufactured in the US, the cost of an iPhone would have been multiple times higher than it is now.
Citi
Like many other companies outsourcing their software development, Citi’s tech operations are undertaken in Poland, India, and the Philippines. At the same time, the BPO setup in the Philippines helps the company to transfer its IT-related services to the country with skilled developers and an appropriate economic situation.
Microsoft
Despite having a large in-house staff, the company has contracts with thousands of remote employees. Like other major companies that outsource software development, Microsoft manages its contractors following “outsourced arrangements.” It signs a contract that states that a specific project is assigned to a particular supplier, which, in turn, hires staff and monitors the working process. Most of the services rely on India, a local company called Infosys.
Oracle
Oracle is among the successful outsourcing examples that have made the best use of countries in South-Eastern Europe. It has offices in Ukraine, Romania, the Czech Republic, and Bulgaria. Besides, a large share of its services are in India, to which the company started to transfer its services in 1994.
Basecamp
This is a web project development tool that helps managers handle their tasks. Like other US companies that outsource, this one is focused on South America, Asia, and Eastern Europe as its partners.
Of course, the list of outsourcing companies can’t be complete without mentioning Google. It has thousands of remote employees located in more than 60 countries worldwide. Like other major outsourcing companies, Google has transferred different services to offshore resources, including software development, virtual assistants, and email support.
IBM
The International Business Machines Corporation is one of the largest employers among American companies that outsource, having over 352,000 employees. Most of its outsourced coworkers are located in India.
European And Asian Companies that Use Outsourcing
The list of non-American companies that use outsourcing might be a bit shorter, yet it includes many SMAs that show how offshore resources impact their development. We have considered the businesses with good industry recognition ratings, their positions in the market, and other valuable factors, like their projects’ success.
Samsung
Samsung is one of the most significant examples of companies outsourcing their services to India. It uses offshore resources for domains such as artificial intelligence, mobile security, and computer vision.
Viber
Being one of the major companies that outsource software development services, Viber cooperates with a vendor named ScienceSoft. They have united to create an app for Android and Windows Phone 7. It is one of those outsourcing examples where companies decide to stay in touch even after finishing the project, and currently, they are partnering to update the existing app.
Freelance.de
There are not many big German companies that use outsourcing, so Freelance.de is the most notable example. Its vendor, ICL Services, specializes in Service Desk, IT consulting, and app development. The outsourced office created an IT solution that helped the client save on infrastructure costs.
Pulse Platform
This isn’t a large company, yet it is one of the most significant Austrian outsourcing examples. Having contacted its vendor, Momobo, the company has received an application developed to meet their needs.
Planon
Among a few Dutch companies outsourcing their operations to India, Planon has delivered high-quality services to global clients. It plans to involve its remote developers in IoT and artificial intelligence projects.
Therefore, we have reviewed some of the world-known companies that outsource their services and can point out that Eastern Europe and Asia are the most popular outsourcing destinations.
Although working with remote teams might seem challenging, considering issues associated with cultural backgrounds, time zones, and lack of interpersonal communication, they all are overshadowed by its advantages. Besides, if outsourcing wasn’t practical, it’s unlikely that tech giants would have been implementing it. If you have been looking for a reliable vendor to help you establish a remote team, Qubit Labs will gladly assist.
Feel free to contact us to schedule a consultation.
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