Successful Stories of Outsourcing

Someone shared about successful stories of outsourcing and thought this is great to share so I could encourage other people too. Here are some few stories to share: 

Companies that successfully create and sustain value year after year are rare. Life shows that a single decision can create the history of success or bury the whole business alive.

Story #1: Procter & Gamble 

Product companies, such as P&G, have a big challenge performing in a very rapidly changing market. It is critical to bring out a new product ahead of many competitors. So one day, after decades of product race, P&G made a decision to outsource some R&D activities. The result exceeded all expectations. Outsourcing boosted its innovation productivity by 60% and generated more than $10 billion in revenue from over 400 new products. Today, about half of P&G’s innovation comes from external collaboration.

Story #2: Unilever

While growing, transnational companies face dramatic operational problems. Well-known consumer products giant Unilever Europe, over the years, had expanded by country and division. As a result, different business groups and geographies operating across 24 countries were all using multiple ERP systems. In 2005 its leadership team made a strategic decision to integrate the company’s multiple business units into a single, and create one ERP system across Europe. Not being a specialist in IT solutions, the company outsourced the development of ERP system to external party. As a result, these improvements have directly contributed to the € 700 million annual savings on operational activities. 

Story #3 Mark McRae and his 30 companies

Here’s the story you probably haven’t heard of. Mark McRae is one of the Sunshine Coast entrepreneurs in Australia. He has successfully managed and own multiple businesses that is more than 30 companies! Having a wife and three children, he was still able to hire 1,300 people and generated $280 million in online and offline sales for his businesses. He says, that his secret is outsourcing. Mr. McRae wasn't afraid to outsource to various countries, such as Malaysia, the Philippines, South Africa, the USA, and India. As a result, he enjoyed the benefits of working with global talents.

There are 2 more stories! Check the full article here and let me know what you think. You can also direct any questions to my email [email protected], or call me on 0488 548 854 if you want to discuss!

Thanks,

Jess