Learning From Giants: How 5 Of The World’s Biggest Companies Outsource labor

Automate
September 3, 2020
3
min to read
Janine Griffiths

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Even the biggest corporations on the planet don’t take the weight of the world on their shoulders. Most businesses have networks of complex processes that can’t always be managed by an in-house team.


Outsourcing is one way that businesses can delegate repetitive, ongoing work that eats up internal resources. While many smaller and medium sized businesses are no strangers to the concept, some may be surprised to find that big companies often make extensive use of outsourcing.


In fact, many of the bigger players use it to boost ROI.


We’ve listed 5 examples of these companies and the approach they took below. 

Google

Outsourcing is not new in the world of Google. 


Despite having publicly prided itself on nurturing its in-house team, outsourcing has simply proven to be more effective.


At least that is, according to a spokesperson for one of the outsourcing firms. Google has outsourced IT specialists, developers, as well as virtual assistant work. In 2011, they made headlines when they outsourced phone and email support for AdWords to around 1000 reps


The aim was to get an increase in ROI on what just happens to be their biggest grossing product. It proved to be successful. Then, in 2016, Google moved to outsource more IT work. It later changed its strategy slightly to include non-core tasks, such as IT management, software development, and maintenance to IT services firms.

Facebook

This is arguably one of the most powerful social media companies in the world and it usually hires all of its IT developers in-house. However, for a company which manages more than a billion users, it should really come as no surprise that Facebook outsources content moderators and some of its developers.

Github

Anybody who is anybody in the world of coding will know what Github is. The platform was founded in 2008 by Chris Wanstrath, PJ Hyett, and Tom Preston-Werner, as a way to host, document, edit and share private code.


They started as an outsourced development company, before finally becoming the open source development platform that it is today. 

Apple

Despite being founded in the US by the charismatic Steve Jobs, Apple routinely outsources many aspects of its business overseas. While its products are designed in the US, its phones are assembled in China and its software and hardware engineering are conducted globally. Its most commonly outsourced services are software audits and performance testing.

Alibaba

Alibaba has its roots in China. It initially started in 1999 as a  small “internet company” called China Yellow Pages, before evolving into the global marketplace powerhouse that it is today.

Its founder Jack Ma outsourced the website development to a U.S. firm due to the shortage in development talent that existed in China at the time. Another major benefit of outsourcing to a US company was it made it easier to bypass the Chinese internet restrictions. Even in the present day, the company still relies on outsourcing partners for production, although its main operation is in China.

Following The Greats

In this blog, I’ve only touched upon a small selection of major companies that outsource their services. By and large, many of these companies outsource their services for the same reason that smaller companies do: it saves money, increases ROI and allows companies to focus on more mission-critical tasks. 

But don’t take our word for it. After all, as an outsourcing and worksharing company that has catered to other titans such as DoorDash, Forbes and Grubhub, of course we would highlight the benefits of outsourcing.

But we’re not alone in our observations. Other major organizations have also documented the advantages of outsourcing.

A survey by Deloitte, showed that 57% of business leaders reported that outsourcing made it easier to focus on core business tasks, while 47% stated that it solved capacity issues. 

Another study by the PwC, revealed that 68% of companies said that outsourcing reduced costs at their organization.

With outsourcing having such clear benefits for companies big and small, it is little wonder that the giants are getting in on the game. 

So if you’ve ever found yourself overwhelmed with recurring, tedious tasks that you can explain, it may very well be time to follow the lead of the corporate titans, and consider outsourcing.



Janine Griffiths

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