Companies that offshore their operations abroad are proof that offshore staffing works.Most of these companies credit their success stories to smart offshoring. Some built their companies from the ground up, while others saw positive ROI from shipping jobs abroad.If you still doubt what offshoring can do for your business just like how these companies that ofshore, it's time to hear these stories to inspire your future offshoring endeavors.Get to know the offshoring journeys of these big companies and how they scaled up and increased their profits.
Big Companies that Offshore their Operations to Other Countries
1. Google
If you have more than 135,000 employees, would you still offshore abroad? It's a resounding yes for this search engine giant! First on the list of companies that offshored is Google.
Google has two reasons for seeing greater value in offshoring. First, it enables them to hire people with skills they don't have in-house. Second, it allows them to cover work and parental leave surges for workers.
In fact, Google is one of the biggest US companies that offshore jobs to the Philippines. Google's outsourcing journey began in 2011 with the dispatch of 1,000 AdWords support positions to contact centers worldwide. The company decided to outsource additional IT tasks in 2016. For development, Google partnered up with Cognizant, a company located in the United States with offices in India.
According to a Bloomberg study, with a long history of offshoring, Google's overall number of contractors exceeded its in-house staff.
2. Microsoft
The company that revolutionized the software industry has also offshored abroad. Second on the list of companies that offshored is Microsoft.
In 2010, Microsoft had signed a three-year contract with Infosys (an Indian multinational IT company). The agreement included offshoring its technical help, database administration, and software application development. As a result, the company increased its ability to assist other clients in leveraging Microsoft's new technologies. Microsoft was the first software company to reach $1 billion in revenues. Through offshoring, it generated revenue of $108 billion in 2015.
3. WhatsApp
WhatsApp is Facebook's largest-ever acquisition. Before it was acquired for $16 billion, it had its humble beginnings with offshoring. WhatsApp's founders offshored its services to Russian coders to keep costs down in the early days. They used offshore expertise to manage the backstage, design solutions, and core app development.
By 2015, it had over 2 billion users globally. And by February 2020, it had become the world's most popular messaging app. With the help of outsourcing as part of its business strategy, WhatsApp being one of the big companies that offshore its services has made a huge growth and success to its business operations.
4. Amazon
The most successful retailer in the Western world has also resorted to offshoring. Amazon offshored its call center services to South Africa. The eCommerce giant had set up a Customer Service center in Cape Town. Clearly, South Africa was chosen for many reasons. One of which is its affiliation to European time zones and its ability to support the US during night hours.
In February 2018, Amazon opened a customer service outsourcing center in Cebu, Philippines. The customer service center was meant to support North American and UK customers.
Aside from customer support, Amazon is also one of the companies that offshored its research and development to Ukraine. It even bought Ring, a start-up company specializing in developing outdoor home security solutions. Ring has since been connected with other Amazon services, allowing live feeds from its devices to be displayed on Amazon Echo Shows.
5. Ford Motor Company
One of the global automotive manufacturing industry leaders has also leveraged the power of offshoring. Ford is also one of the successful companies that offshored its production to China due to growing demand for its automobiles and rising production costs in its home market. In addition, the corporation maintains manufacturing activities in Mexico.
It has also outsourced its back-office operations, software development, IT services, and customer support to India and other nations. It even has production plants in Thailand, Brazil, France, and China, with low-cost labor.
6. American Express
This multinational corporation has been practicing offshore staffing for decades. In addition, it is a pioneer in creating back-office operations centers in another country.
With offices in more than 40 countries, Amex is one of the American companies that offshore back-office activities. Hence, the company expanded in the Philippines and has grown to date. Amex offers business process outsourcing in the Philippines for international travel and payment card businesses, including but not limited to back-office support services, vendor management services, contact center services, technical support, and program management.
7. Samsung
Samsung has also been offshoring in the pursuit of reducing domestic jobs. It has offshored its production to nations such as the United States, which is a major customer of its products.
In 2005, it spent $500 million in its Austin semiconductor factory in Texas. The company used to keep everything about its cellphones in-house, from design to manufacture. That all changed in the second part of 2019 when the South Korean company began outsourcing significantly.
In fact, it has a new facility in India explicitly dedicated to the production of smartphones. Moreover, it has moved its customer service for Australian Samsung mobile consumers to the Philippines.
8. Canva
Companies that use offshoring successfully include Canva. This graphic design platform succeeded by utilizing their Sydney-based team in Manilla, Philippines headquarters with only six offshore employees.
According to Melanie Perkins, CEO, they opted to offshore to the Philippines since its family atmosphere inspired creativity. Canva decided in 2014 to outsource its graphic design, customer support, and back-office operations to the Philippines. The Manila team began with six workers to assist with marketing, customer support, and graphic design.
By 2018, the team had increased to around 250 members. This company is now valued at $40 billion. Perkins and her fiancé Cliff Obrecht attribute their start-up success to offshore staffing.
9. Telstra
The largest telecommunications company in Australia has been moving call center work to the Philippines.
Unfortunately, this resulted in job cuts across Australia. Like other telecommunications firms, Telstra must deal with client demands and technical issues. As a result, they require specialized client service. Many Telstra accounts are handled by a call center operator in the Philippines, which supplies competent employees to assist with customer support needs.
10. UnitedHealth Group
The largest healthcare company globally is among companies that have offshore operations abroad. Optum, a part of UnitedHealth Group company, recruits Filipino nurses from the Philippines for offshore business support services. The company is presently looking for consulting, customer service, project management, healthcare operations, engineering, and analytics help from its offshore staff.
Pre-service nursing, in which nurses at insurance companies, for example, assist in assessing patient requirements and determining treatment options, is one of the jobs being offshored overseas.
Build Your Offshore Staff in the Philippines with KDCI
Companies that offshore their operations abroad demonstrated why the Philippines is the top outsourcing destination. Foreign companies outsource to the Philippines for one main reason: cost efficiency. It means companies get high-quality service for less cost.
If you want to expand your operation in the Philippines, consider KDCI Outsourcing. We are a leading offshore staffing company based in Manila. Click here to see the list of offshore staffing services we offer to support the growth of your business' products and services.
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