Introduction

Today, an increasing number of IT firm owners are putting new strategies into practice. The primary causes that compel businesses to become more flexible in order to function effectively in the fast-paced environment are the global tech workforce scarcity, rising expenses, and escalating rivalry. That is how business process outsourcing (BPO) emerged, allowing IT businesses to expand more quickly while also drastically cutting costs.

There are many instances of businesses implementing offshore solutions effectively with outsourcing companies, Nordic Consult is one such company, we are a premier software development firm committed to providing specialized solutions for your organization. We enable enterprises in transforming their ideas into cutting-edge solutions that are perfectly suited to the requirements of their clients. We can guarantee a remarkable experience when doing business with us because of our scientific approach to working with requirements and our extensive business expertise.

Offshoring and outsourcing are frequently used interchangeably. Offshoring can occasionally be referred to as outsourcing, but this is not always the case. This is because the latter is a catch-all word for outsourcing services, whether they are performed locally, abroad, or in a nearby country (nearshoring).

In this article, we explore both success stories and lessons learned.

Examples of successful offshoring

1. WhatsApp 

While their in-house engineers were focused on client-related responsibilities, such as customer assistance, WhatsApp relied on offshore expertise for backstage management, design solutions, and core app development. The chat app quickly rose to the top of the AppStore and Google Play.

To produce the app at a low cost, in the beginning, WhatsApp’s founders offshored their services to developers in Russia. Some of the company’s Russian developers relocated to the USA as the business expanded.

Later, as the business prospered, Facebook bought it for $16 billion.

2. Google 

In 2020, Google purchased CloudSimple, a business in Ukraine that offers a dedicated, secure, and high-performance environment for creating VMware migration (the process of moving a virtual machine from one server to another) solutions.

Even if you already have the biggest development staff in the world, there is always room for improvement and innovation, as demonstrated by the acquisition of this company.

Google has also contracted with remote workers all over the world to complete software development projects. In 2018, Google’s external contractors outpaced their internal staff, according to a Bloomberg article.

3. Amazon

The American internet giant Amazon.com, Inc. specializes in e-commerce, digital streaming, and artificial intelligence (Artificial Intelligence).

South Africa, which has many skilled outsourcing companies for customer service, was chosen by Amazon as the location for its call center services. In 2018, it established a base for outsourcing customer service in Cebu, Philippines.

Along with outsourcing customer service, Amazon also outsourced research and development to a Ukrainian start-up that specializes in creating home security systems. Amazon can get excellent talent at a low labor cost by outsourcing its R&D.

4. BigCommerce

The successful BigCommerce experience is one of the outsourcing company examples. It is an IT product corporation that offers cutting-edge remedies for e-commerce companies. They intended to grow but found it difficult to find qualified IT engineers in the US. Their collaboration with foreign outsourcing firms seemed to be time-consuming and fruitless.

As a result, they came to our IT BPO firm for efficient ways to build their product and expand a skilled development workforce. We were happy to offer complete support to the BigCommerce R&D facility in Ukraine. Our customer moved into their brand-new office in a month, and within six months, their team size had surpassed 30 engineers.

5. Samsung 

Located in South Korea, Samsung Electronics Co., Ltd. manufactures electrical and smart equipment.

It has outsourced its manufacturing to nations like the USA, which is a significant market for its goods. In 2005, it made a $500 million investment in its Texas semiconductor facility in Austin.

The company also just opened a new plant in India specifically for the production of smartphones. Additionally, it has relocated to the Philippines its customer service team for Australian Samsung mobile subscribers.

6. IBM

One of the biggest technological corporations in the world, IBM has operations in more than 170 nations. Offshoring has been a practice for IBM since the 1960s, when the business started moving production to other markets. IBM has kept hiring people from abroad recently for R&D, consulting work, software development, and monitoring cloud-based computer systems.

IBM also rose to the position of the largest foreign employer in India. IBM has a sizable workforce in addition to making a large investment in the infrastructure and economy of India. The business has developed numerous technology labs and centers across the nation, spending billions of dollars on research and development.

7. JPMorgan Chase & Co.

JPMorgan has been growing its activities in the Philippines over the past few years. The business outsourced software development and operations to Metro Manila and a captive site in Cebu City, respectively (in addition to mortgage operations and customer care services for their US-based businesses).

There are other financial institutions that are offshore besides JPMorgan. About 80% of the biggest banks in the world are said to have offshore software development operations. Financial companies can save expenses and increase revenues without compromising the quality of their services by shifting operations to offshore nations. Offshoring options can also aid in enhancing quality control and accelerating production schedules.

8. People.ai

People.ai is a startup that provides a machine learning-based platform for accelerating B2B sales. Although the business is situated in San Francisco, it chose to establish an R&D facility in Ukraine in order to hire remote AI developers (which are a bit of a rarity).

Now that it has access to a talented developer pool, People.ai is better able to develop new products and enhance those it already has. The business also gains from operating an R&D office in Ukraine’s reduced cost and is able to provide its clients with a more competitive product.

9. BigCommerce

Leading e-commerce platform BigCommerce offers cutting-edge solutions for companies of all sizes. Since its launch in 2009, BigCommerce has aided tens of thousands of companies in developing and expanding their online presence.

The business has been growing rapidly in recent years, expanding both its staff and its product line. However, the U.S. struggles to find qualified IT workers, therefore BigCommerce made the decision to establish an outsourcing facility in Ukraine. The relocation was a huge success: the team settled into their brand-new office in just one month, and within six months, the team grew to include more than 30 developers. BigCommerce is now in a good position to maintain its rapid growth and spur additional innovation in the e-commerce industry.

Conclusion

Offshoring is a big decision that requires great thought and strategy for any business. When and where to offshore commercial operations, as well as how to do so competitively, must be planned in advance.

Contact us so that we can any questions that you may have about expert IT consultant resources. As the Sales Executive of Nordic Consult, I can answer any questions you might have and as a company in the IT consulting industry for more than 15 years we might just have the solution for you.

 

Published On: December 15th, 2022 / Categories: Outsourcing /

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