Have you ever wondered how well-known brands like Apple, Google, and Amazon continue to dominate such a large portion of the market? You may be surprised to learn that these industry titans have one thing in common: they utilize outsourcing strategically.
This blog discusses the use of outsourcing by multi-million dollar businesses and shows you how your company may reap the same benefits.
Top Examples of Multi-Million Dollar Companies that Outsource
1. Alibaba
Alibaba is the first company on our list of examples of outsourcing. Few people are aware, nevertheless, that China Yellow Pages was a little "internet company" at first. It was one of the biggest and most valuable firms in the world when Jack Ma founded it in 1999.
From its humble beginnings as China Yellow Pages, Alibaba has grown to become the largest marketplace in the world. In order to get past internet limitations and take advantage of the lack of skill in China, founder Jack Ma outsourced website development to a U.S. company.
A key factor in its early success was outsourcing, at first to the United States. Even though it still mostly uses Chinese outsourced partners, Alibaba is a major player in the global e-commerce industry today.
How has outsourcing played a crucial role in its growth and success?
Alibaba's success and expansion have been greatly enhanced by using remote developers and outsourcing. Alibaba has effectively expanded into new areas, enhanced innovation, and expedited product development by leveraging worldwide talent pools.
2. WhatsApp
When Jan Koum and Brian Acton founded WhatsApp in 2009, they completely changed the instant messaging industry by offering a dependable, safe, and easy-to-use platform. Since then, it has grown to be among the most widely used messaging apps worldwide.
How has outsourcing played a crucial role in its growth and success?
Although WhatsApp began with a small in-house team, the creation of their web platform and iOS app was outsourced. They were able to concentrate on their core capabilities and user experience thanks to this economical approach, which ultimately contributed to their explosive growth. WhatsApp's growth has been largely attributed to remote development and outsourcing.
WhatsApp quickly developed and expanded its platform to support millions of users by working with talent all over the world, guaranteeing smooth communication experiences.
3. Apple
Steve Jobs, Steve Wozniak, and Ronald Wayne founded Apple in 1976, and the company has become a symbol of innovation in consumer electronics, software, and services.
How has outsourcing played a crucial role in its growth and success?
Even while Apple is renowned for its in-house engineering and design skills, it occasionally uses outsourcing for certain jobs like component assembly and manufacturing. They are able to preserve their competitive advantage and benefit from economies of scale as a result.
Apple's success has been largely attributed to outsourcing and remote development, which allowed the business to assemble a talented global team to drive innovation, optimize development processes, and provide outstanding products to customers worldwide.
4. AppSumo
AppSumo is a website that provides daily discounts on digital goods and services for small businesses, freelancers, and entrepreneurs. It was started in 2010 by Noah Kagan. It gives access to resources and technologies that support the expansion and success of enterprises.
How has outsourcing played a crucial role in its growth and success?
App Sumo has relied heavily on outsourcing and remote development to source and provide its users with high-quality bargains. AppSumo, which was started with just $50, relied entirely on outsourcing for all aspects of its early development, including web design, development, and marketing. They were able to build their company quickly and bootstrap it thanks to this economical strategy.
5. MySQL
An open-source relational database management system called MySQL was created in 1995. It now ranks among the most extensively used databases in the world, powering a large number of websites, software programs, and online apps.
How has outsourcing played a crucial role in its growth and success?
After beginning as a proprietary product, MySQL became an open-source database management system that allowed developers from all around the world to contribute to its advancement. This type of "collaborative outsourcing" has been crucial in MySQL's development and global acceptance, positioning it as one of the most widely used database technologies.
6. GitHub
PJ Hyett, Chris Wanstrath, and Tom Preston-Werner founded GitHub in 2008 as a web-based version control platform utilizing Git. It makes software developers more collaborative by giving them the ability to host, inspect, and maintain code repositories.
How has outsourcing played a crucial role in its growth and success?
The largest open-source software hosting platform in the world, GitHub, mainly depends on a distributed workforce. Although they have a core team of employees, they also outsource the development and upkeep of the platform to a large global network of professionals.
7. Slack
Stewart Butterfield established Slack in 2013, a cloud-based platform for team collaboration that facilitates communication and workflow management. It provides file sharing, channels, chat rooms, and interfaces with other tools and services. More than 10 million people use Slack every day for corporate communication.
How has outsourcing played a crucial role in its growth and success?
The well-known workplace communication tool Slack used a hybrid approach to development, including teams from within and outside the company. To free up their internal staff to concentrate on user experience and core product development, they outsourced certain responsibilities like quality assurance and customer support. They were able to effectively scale and meet the increasing demands of their user base thanks to this method.
8. IBM
Established in 1911, IBM (International Business Machines Corporation) is a global technology corporation providing hardware, software, and advisory services. In the fields of computers, AI, cloud computing, and quantum computing, it has led the way.
How has outsourcing played a crucial role in its growth and success?
The computer giant IBM, which has a strong track record of innovation, actively uses IT outsourcing to augment its own personnel. To have access to specialized knowledge and abilities in particular fields, such as software development, data analytics, and cloud computing, they collaborate with numerous businesses across the globe.
9. Microsoft
Microsoft is a multinational technology corporation that was founded in 1975 by Bill Gates and Paul Allen. It is best known for its software products, which include the Windows operating system, Office suite, and Azure cloud platform. It's among the biggest and most powerful tech businesses in the world.
How has outsourcing played a crucial role in its growth and success?
Another major giant, Microsoft, approaches IT outsourcing in a variety of ways. They contract out a variety of jobs, from manufacturing and assembly to software development and customer service. They may maintain their worldwide reach, access a variety of talent pools, and achieve cost-efficiency with the aid of this method.
10. American Express
Founded in 1850, American Express (Amex) is a global financial services company best recognized for its traveler's check, credit card, and charge card divisions. It offers financial, travel, and payment services to people and companies all around the world.
How has outsourcing played a crucial role in its growth and success?
One of the top financial services companies, American Express, uses outsourcing for some business processes like customer support and IT infrastructure management. This keeps businesses competitive in a changing market and enables them to concentrate their internal resources on providing core financial services.
What Motivates Companies To Outsource Work?
Let us break down the core reasons why these companies relied heavily on outsourcing.
Innovation and Fresh Perspectives
Collaborating with external teams can introduce fresh viewpoints and ideas, encouraging creativity and assisting you in locating possible blind spots within your company.
Access to New Markets
Partners in outsourcing could possess established networks and specialized knowledge in particular areas. This can prove to be very advantageous in case you want to penetrate new markets.
Reduced costs
By using outsourcing, you can reach a larger pool of talent and possibly locate qualified workers in areas with less labor prices. When compared to hiring a full-time in-house team, this can result in significant savings on overhead, benefits, and salary.
Expertise Access
Finding highly qualified experts for some jobs can be difficult and costly. By outsourcing, you can discover professionals with the precise knowledge and expertise you require for your project from a worldwide pool of talent, saving you the expense of lengthy internal training.
Scalability and Flexibility
Businesses can benefit greatly from the scalability and flexibility that outsourcing offers. You don't need to make long-term commitments or go through hiring and firing cycles in order to simply scale your personnel up or down in response to project demands.
Using Strategic Outsourcing to Boost the Growth of Your Company
The great names of the field didn't become what they are today by doing it alone. They were able to efficiently access a large pool of talent and resources that were outside of their immediate grasp by realizing the possibilities of global outsourcing.
A lot of famous companies like Google outsource, but only some of them succeed in doing so.The advantages of outsourcing software development are huge.
According to statistics, the gross market of software development outsourcing hit $64B in 2018.Here you will find out more on the following topics:1 The state of outsourcing development in 2019 - What's outsourcing?
Who outsources and why?2 The risks and rewards of software development outsourcing links for further reading3 Software development outsourcing models a comparison table4 Top 5 destinations for outsourcing software development5 How to start with software development outsourcing
Rely on outsource mail companies for fast and accurate processing of mail.
Let digital mailrooms help you manage your mail process and take care of mail opening, sorting and managing.Mailrooms are set up to secure document scanner to scan the mail and directing mail to the correct address.
Typical process unit that requires mailroom that handles your:InvoicesOrdersApplicationsInsurance FormsLegal DocumentsAn outsource mail company can manage the entire mail process including document design, print to mail, successful delivery, simplified inbound and outbound mail process thus being called print to mail companies.
Outsource companies usually assess the existing mailing system, manual labour, equipments and operations of the business.
Then they are able to utilize the right mix of of mail process technology, labour and equipment to achieve efficient mail operations.
Outsource mail companies are certified in USPS mail center management and other postal services for the cost-efficient mail management.
How does outsource Customer service helps business?
Outsource Customer Service will help to support all kinds of business.
We will understand customer queries and provide service to them.
With the rapid evolution in technology, businesses are almost suffering to keep up with the constant advances.
While being agile and leveraging these advances can scale up your business and increase profits, staying on top of the ever-expanding market can be quite a task.So, what must an organization who’s already sunk in their day-to-day operations do?
It essentially involves a course of action made by a business to enlist the help of third-party organizations or contractors to do the product-related work that could have been done in-house.Check out this complete guide to hire offshore developers.The Growing Trend of Offshore Development“The global IT services outsourcing market size was valued at USD 520.74 billion in 2019 and the compound annual growth rate is projected to grow by 7.7% from 2020 to 2027″.
Now that you know what an offshore development team is, you may be wondering why to work with an offshore team anyway?The big idea has to do with lower costs and reduced risks.
India has evolved as the epitome of software outsourcing hubs in the world.
Globally known for its top-notch software solution, YTII outshines at helping businesses of all sizes to hire developers, across a wide range of technologies.The company embraces a well-established set of cultural and professional values in cooperation with its development center in India.
