The United States generates the most global BPO revenue. US businesses outsourced 300,000 jobs to developing countries every year, showing confidence in outsourcing high-end roles to top BPO destinations.
68% of US-based companies outsource at least a part of their business. Outsourcing motivations range from cost-cutting to acquiring talents and resources.
Corporations outsourcing a part of their business operations
With great power comes great responsibility. And these powerful companies get the help they need through outsourcing. 99% of Fortune 500 companies outsource. Beyond call centers and non-core responsibilities, the umbrella tasks of outsourcing extend to digital and core operations.
Walmart outsources most of their IT-related operations. In 2007, the company signed a $300-500 million outsourcing contract in India. The main reason for their outsourcing is to lessen the costs for IT initiatives.
In 2018, the company began to outsource its finance and accounting services to Genpact. 550 of the outsourcing firm’s employees are former Walmart associates working for the new digital hub.
Slack outsourced their entire brand image to a Canadian third-party service provider. Starting from their logo creation, marketing site design, to their web and mobile applications.
Stewart Butterfield, founder, drafted a rough prototype of his idea. His outsourced team developed the application expecting success from its playful interface. The 2013 unstyled application now has a $25 billion valuation.
Microsoft continues to outsource their internal and support services. The company is outsourcing their PC procurements and delivery, setup and installation of PC and peripherals to domestic sites.
Microsoft’s strategy is to keep in-house skills to engineering and emerging technologies. They outsourced resellers who also track and analyze procurement orders. Their outsourcing policy is particular in extending business to contractors with the right skills and tools.
Alibaba outsourced their web development to make their vision a reality: a bilingual online platform that caters to Chinese and English customers. Jack Ma, founder, outsourced to the US because of the shortage of English-speaking web developers in China.
Whatsapp outsourced its core development including their iOS compatibility in Russia. Their main motivation was to cut costs.
Apple spent $100 million dollars in India for building back-end software for its products. They also partnered with IT outsourcing offices in developing applications and for solution consultations.
US Companies outsourcing to Upwork and third-party service providers
US companies also utilize job platforms like Upwork or third-party service providers to complete one-time or ongoing projects.
Upwork clients ranged from small businesses to one-third of multinational companies from Fortune 500. The countries that generated the most revenue to the website are the USA, India, and the Philippines. 145,400 companies look for employees on Upwork, spending $5,000 in the last 12 months.
UpWork itself builds its team with contractors. The number of freelancers hired by the company has increased 20% with 1500 hired contractors every year.
Cisco System outsourced their IT architecture. They hired third-party service providers to monitor and manage day-to-day network infrastructures. This is to help their in-house IT team to focus on strategic projects then contextual activities.
Intel outsourced their chip manufacturing because of the overwhelming competition. The rising demand and the delay in suppliers pushed the company to choose this option.
Top Companies that outsource to the Philippines
The Philippines is one of the top five outsourcing destinations in the world. It was even dubbed as the ‘call center capital of the world’ in 2010. Today, the country’s BPO industry accounts for 10-15% of the global BPO revenue for.
- Facebook started outsourcing to the Philippines in 2016. The company hires teams to work as customer support, IT technicians, and content moderators.
- Google outsources a part of their business operations from IT services, app development, software development, to analytical consultants.
- Hewlett Packard (HP) outsourced their customer support and IT services to Filipino professionals.
- LinkedIn outsources their back-office support functions and customer service to third-party service providers in the Philippines.
BPO companies in the Philippines are trusted by small business, medium sized companies, and large corporations.
- Firms such as Amazon, Macys, Kohl’s Corporation and Oregon Health and Science Corporation outsource their customer service to Alorica. Their Filipino employees are effective in voice and non-voice customer support proven by more than 250 clients.
- AdRoll, ring, AutoDesk, BetterDoctor, Udemy, and Tinder are some of the clients of TaskUs. The company provides data collection, back office support, customer support, and digital solutions.
- PeopleSoft’s describe the positive experience collaborating with Cognizant as the smoothest and cleanest upgrade to their business. Mitsubishi’s IT Director shares that their process with the company was quick and effective. Cognizant takes pride in their smart marketing transformation with a Fortune 500 pharmaceutical company.
Why choose outsourcing?
Outsourcing to the Philippines is less expensive than the cost of taxes, benefits, and employee expenses of in-house hires. Clutch surveyed 500 companies and 90% plan to outsource. Their main motivations include:
- Access to flexible resources
- Improve efficiency and save time
- Work with an offshore expert
- Support business growth and scalability
Business processes you can outsource are administrative tasks like human resources, back office support, and payroll services. You can also outsource development-related responsibilities, accounting and IT services.