The number of companies that outsource is on the rise. The main reason behind this trend is that businesses can benefit greatly from working with offshore developers. The opportunity to reduce expenses, get access to a pool of competent programmers, and focus on essential activities – these are just some of the good things to highlight. So, let’s dig deeper and take a closer look at tech giants that successfully opted for IT staff augmentation and outsourcing software development services.
#1 — Cisco Systems
This corporation has various benefactors who emerged after the business decision to outsource a significant part of its services. Cisco is one of several corporations that outsource to China and India, where the Cisco IOS organization monitors and supervises employee workloads.
#2 — Walmart
Walmart conducts the majority of its retail and e-commerce activities in 27 countries across the globe. However, the majority of partner firms are based in Asia. Walmart, like other corporations that outsource labor, has opted to move accounting and financial services overseas and lay off in-house personnel in favor of remote workers. According to the most recent survey, 82.9% of IT organizations use remote teams because they are more cost-effective. And Walmart proves this trend pretty well.
#3 — Apple
One of the most well-known examples of corporations that outsource their services is Apple, which develops its products in California but manufactures them in China, Korea, Mongolia, and Taiwan. The primary reasons for shifting its services to other nations are to save time and money. If an iPhone had been made in the United States, it would have cost several times more than it does now.
#4 — Citi
Just like many other corporations in this overview, Citi outsources its software development to Poland, India, and the Philippines. At the same time, the BPO setup in the Philippines enables the corporation to relocate its IT-related services to a nation with competent developers and a favorable economic climate.
#5 — Microsoft
Despite having a significant in-house team, the corporation contracts with thousands of remote workers. Microsoft, like other big corporations that outsource software development, oversees their contractors via “outsourced arrangements.” It executes a contract stating that a certain project is given to a specific supplier, who in turn recruits employees and oversees the work process. The majority of the services are provided by a local firm in India known as Infosys.
#6 — Oracle
Oracle is one of the successful outsourcing instances that have been best used by nations in South-Eastern Europe. It has offices in Ukraine, Romania, the Czech Republic, and Bulgaria. Furthermore, a significant part of its services are provided in India starting from 1994.
#7 — Basecamp
This is a web project development tool that assists managers with their jobs. This company, like others in the United States that outsource, focuses on partners in South America, Asia, and Eastern Europe. Apart from the in-house team, Basecamp outsources a part of its tasks to dedicated IT specialists.
#8 — Google
Of course, the list of outsourcing businesses would be incomplete without including Google. Thousands of remote workers work from more than 60 countries across the globe. Google, like other big outsourcing corporations, has moved a variety of services abroad, including software development, virtual assistants, and email support.
#9 — IBM
With over 352,000 workers, International Business Machines Corporation is one of the major American outsourcers. The majority of its outsourced colleagues are based in India.
Wrapping up
As you can see, there are many outsourcing success stories since most businesses subcontract their IT services in some form or another. This might be major corporations like those discussed in this article or tiny startups with limited budgets. From technology corporations that outsource some of their projects to third parties to manufacturing, retail, healthcare, and government organizations —- the list is so long. Regardless of the case, businesses choose outsourcing and outstaffing because of the advantages these models provide: cost savings, access to innovations and unique tech skills, increased process efficiency, quicker time to market, more agility, improved company scalability, and so on.
The good news is that there is an outsourcing model for every budget and business type. If you have a limited budget and do not want to be bothered by developers, go with fixed-price outsourcing. If you want greater knowledge in a certain area, consider outsourcing. If you wish to relieve your in-house developers of some of the excess work and assign certain side projects to third parties, look into a time-and-material outsourcing provider. There is an option for everyone. With this in mind, it is no wonder that the worldwide market for IT outsourcing services is estimated to reach $937.6 billion by 2027.
With over a decade in the tech field, Bogdan blends technical expertise with insights on business innovation in technology.
A regular contributor to TMS Outsource's blog, where you'll find sharp analyses on software development, tech business strategies, and global tech dynamics.
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