Outsourcing is not just for growing companies that need cost-effective labor. It offers far-reaching advantages, including increased productivity and superior customer service.
Outsourcing is a common practice for businesses of all sizes. Sixty-eight percent of US companies outsource to other countries. In fact, the largest companies in the world are also some of the biggest clients of business process outsourcing (BPO) companies.
So, what companies outsource their operations and why? Here are the top 10 US companies that outsource their staffing needs.
1. Google
Alphabet Inc (GOOG, GOOGL) is the third-largest tech company in the world. Over 92% of Internet searches come from Google.
It may surprise you to learn that at least half of Google’s workforce is comprised of outsourced agents. Most of the outsourcing is for customer support, especially for the company’s AdWords division. The company also outsources various IT services to BPO providers in the Philippines. The company even opened an office in Manila, allowing Google to better facilitate its growing reliance on outsourced workers.
2. Facebook
Facebook is another major US tech company that depends heavily on outsourced staff. Over one-third of the world’s population logs on to Facebook at least once per month. The company reaches users and outsourced workers across the globe.
Facebook uses outside firms for customer support, IT services, and content moderation. As with Google, Facebook opened an office in Manila and frequently works with BPO companies in the Philippines.
3. Apple
Apple is the biggest tech company and one of the world’s largest overall companies. It has over 154,000 full-time employees. It also outsources over 450,000 jobs in the United States alone through US-based suppliers and vendors.
Apple outsources most of its manufacturing. Over 95% of the company’s products are assembled in China. However, outsourcing manufacturing is a common practice in many industries.
As with other American companies that outsource, Apple also outsources customer support. Apple is frequently ranked as one of the best companies for customer support, which is largely thanks to the company’s outsourced customer service agents.
4. Microsoft
Microsoft is another household name that generates billions of dollars in revenue each year. The company has 182,000 employees across the globe but also retains a large, outsourced workforce.
The company works with multiple outsourcing agencies and thousands of independent contractors. Most of the company’s internal support is handled by third-party agencies. The company also outsources a wide range of IT services, including tech support and network administration.
5. IBM
International Business Machines (IBM) was founded in 1911 and was once the leading computer manufacturer. The company generated over $73 billion in revenue in 2020 and employs over 375,300 employees in over 170 countries.
Along with its in-house employees, IBM outsources tens of thousands of jobs to workers around the world. The company outsources most of its IT functions and customer support.
6. Slack
Slack Technologies is the company behind the popular business platform “Slack.” Slack is now owned by Salesforce, which is also a leading tech company.
Slack and Salesforce both outsource a variety of positions, including customer service, software development, and design. Early in the company’s history, Slack hired an outside agency to design its logo, website, and mobile apps. The company continues to use outside firms for advertising and marketing.
7. Wells Fargo
Wells Fargo is a US financial company founded in 1852. The company is headquartered in San Francisco but serves customers around the world. Wells Fargo generated over $20 billion in revenue in 2021, making it one of the largest financial companies in the world.
Providing financial services requires a wide range of services, which Wells Fargo often outsources. The company outsources customer support, fraud detection, payroll processing, financial accountants, and much more.
8. LinkedIn
LinkedIn launched in 2003 as a professional networking platform. It now serves over 774 million registered users in over 200 countries and territories. The company has users across the world, increasing the need for a diverse workforce. Along with 20,000 in-house employees, LinkedIn has thousands of remote agents.
Most of the company’s back-office functions are handled by outsourced workers. The company relies on outsourcing for customer service and technical support.
9. American Express
American Express was founded in 1850 and is now one of the main payment card service providers. The company has over 63,000 employees at offices in dozens of countries.
American Express was also an early adopter of outsourcing. The company has outsourced customer service positions for decades. A lot of the outsourced AMEX call centers are in the Philippines, which is the leading country for reliable outsourcing solutions. Along with customer support, American Express outsources technical support and payment collections to BPO companies in the Philippines.
10. WhatsApp
WhatsApp launched in 2009 and became the most popular messaging application by 2015. It had over two billion users in 2020. WhatsApp is now owned by Facebook. However, before the acquisition, WhatsApp had just 30 employees.
Most of the staff handled customer service. Almost all the technical roles were fulfilled by outsourced team members in Russia. The success of WhatsApp is largely credited to the company’s reliance on outsourcing.
What Jobs Do Major Companies Outsource?
Now you know what companies are outsourcing, but why are they outsourcing? People typically associate outsourcing with customer service call centers. However, BPO companies provide a broad range of services to cover almost any business operation.
Companies that use outsourcing often outsource the following services and positions:
● Customer service
● Technical support
● Telemarketing
● Appointment setting
● Human resources
● Payroll processing
● Software development
● Logistics
These are just a few of the areas where companies often choose to outsource. Almost any task that can be handled remotely can be completed by an outsourced worker.
READ MORE: 62 Outsourcing Services You Need To Know To Grow Your Business (Ultimate List)
Why Do Major Businesses Outsource Their Staffing?
Google, Facebook, and other top companies that outsource also have the resources to hire internally. So, why do these companies continue to outsource? Major companies outsource for the same reasons as smaller businesses:
● Reduced costs
● Increased flexibility
● Streamlined internal operations
● Access to skilled workers
Outsourcing is also a viable option for businesses in every industry. For example, customer support and related services are the most common tasks outsourced to a third party.
Outsourcing Helps Reduce Costs
Even the largest companies remain concerned with overhead and profits. These companies do not generate billions of dollars in revenue by being wasteful. They outsource specific business operations when it makes sense financially.
Outsourcing is traditionally less expensive compared to hiring employees. Businesses that outsource save money on equipment, office space, hiring, and training.
Outsourcing Offers Increased Flexibility
Outsourcing tends to save time and resources compared to hiring and training in-house staff. The increased efficiency provided by outsourcing gives businesses greater flexibility. They can respond to the needs of customers faster. Outsourcing gives you the flexibility to easily scale your operations up or down based on your current needs.
For example, a company may need to temporarily increase the size of its workforce to meet demand. This often occurs leading up to a product launch, during sales events, or around the holiday season.
Companies may outsource customer service and tech support to deal with increased call volumes. Outsourcing sales agents can help keep up with an increase in orders.
Outsourcing Helps Streamline Operations
The flexibility and scalability of outsourcing help streamline internal operations. Businesses can maintain or reduce the size of their in-house workforce. They also avoid expanding the scope of responsibilities for current employees.
Outsourcing also reduces demands on in-house employees. They gain the freedom to focus exclusively on their core job duties. These factors increase the efficiency of internal business procedures.
Outsourcing Offers Access to Skilled Workers
Companies such as Google, Apple, and Facebook cannot always fill open positions. A shortage of skilled workers in certain regions has increased the need for outsourcing.
Experts predict that companies will continue to struggle to hire qualified workers in the years to come. Demand for technology continues to increase each year while the availability of domestic workers has stagnated.
Outsourcing helps solve staffing issues. Companies can easily find workers with the necessary skills by working with an outside agency.
How to Start Outsourcing Your Business Operations in the Philippines
As with any business decision, outsourcing requires planning. You need to consider which job duties you want to outsource, the number of workers required, and many other details.
You should also consider the region where you plan on outsourcing. The Philippines stands out as the preferred choice for any business that outsources jobs. Business processing outsourcing (BPO) contributed over $26 billion to the nation’s economy in 2019. BPO providers employ over 1.3 million at more than 1,000 firms.
If you want to join the ranks of the top companies that use outsourcing, look for an experienced BPO provider, such as Digital Minds BPO.
With years of experience and a long list of clients, we are equipped to handle your outsourcing needs. We can work with you to develop a plan that addresses your staffing requirements. All our staff completes rigorous training, ensuring access to highly educated, skilled workers and cost-effective solutions. Contact us today to learn more.
Thinking of outsourcing to the Philippines? Check this article Why Should You Outsource to The Philippines and How To Do It Successfully
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Awesome! Thanks for list of US companies that outsource American jobs. Now I have a list of companies from which I will not do business with.