Top 5 Outsourcing Success Stories

To remain prime and relevant in the market, businesses strive to up their game day in, day out. Strategies and techniques are developed and employed to achieve business goals and objectives. While some have proved abortive, others have led to immeasurable successes. The practice of outsourcing is one of the most common strategies used nowadays. This trend has gained notoriety because of its effectiveness and positive outcomes.

Outsourcing is a business practice in which a company hires a third party to perform tasks, handle operations, or provide services for the company. Several companies have adopted this practice and have reaped immense benefits.

The following are “real-life scenarios” of top companies that have benefited from the practice of outsourcing:

1.????? Procter and Gamble (P&G)

宝洁 is an American multinational consumer goods company that manufactures personal care, hygiene, personal health, and consumer health products. As a product company, P&G competes with other companies in this fierce market.

After implementing several innovative ways to stay ahead, P&G decided to ply a new route by outsourcing some research and development activities. This strategic move led to a 60% increase in innovation and productivity, generating over $10 billion from more than 400 new products.

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2.????? Alibaba Group

阿里巴巴集团 is a Chinese multinational technology company owned by Jack Ma. Alibaba focuses on e-commerce, the internet, retail, and technology. It is one of the biggest online markets in the world.

Since the inception of the company in 1999, the practice of outsourcing has been leveraged. Alibaba outsourced IT and software development to US developers because, at the time, China lacked the needed talents and expertise.

This outsourcing strategy enabled Alibaba, the eBay of China, to grow into one of the largest online marketplaces globally, with 674 million annual active subscribers and a 60% share of the Chinese eCommerce market.

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3.????? Unilever

联合利华 is a British multinational FMCG company founded in 1929. Unilever was ranked as the 6th largest consumer goods company worldwide by Statista . Since 1929, Unilever has grown to be a reputable brand with operations in over 24 countries. Initially, all Unilever branches across the globe used different Enterprise Resource Planning (ERP) systems.

Later on, the company decided to develop a single ERP system across Europe. The process of developing a single ERP system was outsourced to a third party. This initiative saved the company €700 million annually in operational costs.

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4.????? WhatsApp

Virtually everyone who owns a smartphone uses the social media app called WhatsApp . According to Backlinko, WhatsApp is ranked as the?most used mobile messenger app?in the world. Before Facebook secured ownership of WhatsApp, WhatsApp outsourced its web development to developers from Eastern Europe.

By outsourcing, WhatsApp was able to save operational costs and have a competitive edge in the market. The app quickly became one of the top-ranked on Google Play and the App Store. Today, WhatsApp is recognized as the most used mobile messenger app globally.

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5.????? Google

谷歌 ?is an American multinational company that specializes in internet-related products and services. Google Search, a product of Google is widely known as a “search engine” on many digital devices.

Google is acquainted with outsourcing IT jobs. In 2011, Google revolutionized its online advertisement platform called Google AdWords, because of the mixed-to-negative criticism received for its customer service. Google outsourced its customer service to a thousand reps all around the world. These reps provided client support via phone and email, transforming Google AdWords into a cash cow for the company.

The above-listed companies are undeniably big brands in their respective industry. These success stories underscore the transformative power of outsourcing in achieving business objectives and driving innovation. By strategically leveraging outsourcing partners, these companies not only optimized operations but also accelerated growth and market dominance.

Outsourcing continues to prove itself as a crucial strategy for businesses aiming to stay competitive in rapidly evolving industries. As businesses navigate challenges and seek avenues for growth, outsourcing remains a viable option to consider. Just as these global giants have reaped significant rewards from outsourcing, businesses of all sizes can benefit from tailored outsourcing solutions.

If your organization is looking to streamline operations, enhance productivity, or explore new growth opportunities, consider partnering with Phillips Outsourcing. With a proven track record in providing comprehensive outsourcing solutions across various industries, Phillips Outsourcing stands ready to empower your business success in the digital age.

References

1.????? Backlinko. (2023, Dec 12). WhatsApp User Statistics 2024: How Many People Use WhatsApp? Backlinko. Retrieved from https://backlinko.com/whatsapp-users

2.????? Statista. (2024, Feb 16). Leading 50 FMCG companies worldwide in 2023, based on net sales.? Retrieved from https://www.statista.com/statistics/260963/leading-fmcg-companies-worldwide-based-on-sales/#:~:text=The%20ranking%20shows%20the%20leading,about%2063.29%20billion%20U.S.%20dollars .

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