What Companies Have Outsourced

February 7, 2023

There have been many concerns about outsourcing, especially in the software development industry. For instance, when evaluating whether outsourcing will benefit their businesses, many top executives often ask questions such as, "What companies have outsourced?"

Many top companies frequently outsource services such as software development and programming. Read through this article for a list of outsourcing companies to get insight into the benefits that will help you decide if it is an exemplary service for your business.

Top Companies that Have Outsourced

Outsourcing is a field that has witnessed exponential growth throughout the years. One of the main reasons for this popularity is that third-party providers have better access to specialized expertise than the company's internal team. The following companies have outsourced non-core functions to focus on core businesses:

Google

The multinational technology giant has outsourced for years. Although it is a business leader in the US, the number one search engine company relies on outsourced providers. The company that started a simple search engine has expanded into advertising, software, and hardware services. Despite the company's size, Google outsources non-core functions such as software development and email support. In 2018, the number of outsourced employees seamlessly blended with the in-house team exceeded the company's internal team.

Alibaba

This company is an e-commerce giant company that outsources. Unlike many companies that outsource in lower-cost countries such as China, Alibaba faces different outsourcing challenges. Such problems are mainly because Alibaba is based in China, a county in the low-cost region. However, Alibaba outsourced its early development to the US. Outsourcing web development to the US allowed Alibaba to access a pool of highly skilled and talented software engineers.

WhatsApp

The company is an example of that outsourced from the beginning. WhatsApp needs to reduce costs and allow its 30 full-time employees to focus on the core business. Based in the US, the company outsourced development resources from Russia.

Apple

The revolutionary technology company has been outsourcing for years. Apple has outsourced most of its supply and manufacturing services to focus on design. The company depends on third-party providers from US and Asia.

Slack

The company has done so much to improve collaboration and communication since 2013. It began with a team of four developers that relied on an outsourced design firm to disrupt the communication industry.

American Express

The global financial service company provides credit card and banking services in more than 40 offices. The American Express in-house team works with outsourcing partners from the Philippines. The majority of their outsourced services include IT support and customer support.

International Business Machines Corporation (IBM)

The multinational technology company has outsourced its IT functions. Although it offers outsourcing services to other companies, IMB relies on third-party providers to take care of its and its clients' network management services.

Why Have These Companies Outsourced?

Top companies rely on third-party providers for certain aspects of their business operations. Commonly outsourced services include IT-related responsibilities. Outsourcing is often taken up by businesses that want to function effectively at a lower cost and with minimal loss of essential resources. Common reasons why companies that have outsourced trust third-party providers include:

  • Reducing operating cost
  • Improving quality
  • Solving human resource capacity issues
  • Increasing focus on core business objectives
  • Utilizing services from a pool of talented and skilled software developers.

Resolve Common Outsourcing Challenges Through Nearshore Software Development

Industry leaders in the United States and across the globe have outsourced one or more services. This strategy allows them to cut costs and focus on their core competencies. Unfortunately, outsourcing can pose risks around service quality and sensitive data security. As a result, most companies in the US are working with nearshore software development companies. Nearshoring allows a company to access a quick source of skilled software engineers from the same cultural backgrounds.

 

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Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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