Outsourcing is not a new concept in the industry but nowadays it has become extremely popular due to several advantages. Outsourcing a particular segment of work is not only cost-effective but also gives access to specialized knowledge and skill which makes the entire process extremely easy. Several companies and individuals have benefitted from hiring service of outsourcing companies and it has helped them a lot to implement new business strategies and become successful in the long run.

Companies cannot be self-sufficient and expert in every field of affairs and here comes the role of outsourcing. Business process outsourcing fills the talent gap in the industry and provides them with specialized services and trained manpower. There are several examples in the industry where the implementation of outsourcing services has changed the fate of companies and put them back on the path to success.

So today we will go through some of the best cases and outsourcing examples in the industry and try to figure out how outsourcing has changed their dimension.

Slack Technologies:

Slack | FGS

Slack Technologies is an American cloud-based software tools and Services Company founded in the year 2013 and today it is successful in the market only because of outsourcing. They outsourced their software development and designing process from a design team in Canada known as Metalab who helped in transforming the product they manufactured from its testing phase to a successful one.

Slack Technologies got the right technical support from Metalab at the right time which was extremely needed for its growth.  After that Slack Technologies raised 250 million dollars investment by outsourcing its website design, logo creation, mobile, and web applications and was valued at 5 billion dollars in 2017. Thereafter Slack Technologies grew further in valuation and stood at 7.1 billion dollars as on August 2018. Slack Technologies is one of the best examples of successful outsourcing.

They relied on MetaLab for their beta testing and received valuable feedback which inspired them in creating a tool which became immensely popular within 2 weeks if its launch and reached 15,000 users. Further Slack recorded more than 8 million users by May 2018, with some of the big companies like IBM, Oracle, and BBC using the tool for their daily business needs and day to day operations.

Citigroup:

CItigroup | FGS

Citi is one of the most renowned American financial service corporations which operates worldwide and has been outsourcing its technical operations department since 1992. The company operates in different offshore locations in Poland, Philippines, and India and in order to boost its IT outsourcing it has reduced 11,000 jobs in its headquarters in the year 2012 most of which were previously done by the in-house workforce.

The company has established several ‘center of excellence’ which are basically outsourced development centers operated by Citigroup and is aggressively outsourcing from several companies like Wipro, TCS (TATA Consultancy Services) and many more. Citigroup is just one of the several companies which are outsourcing its technical skills and the list includes big giants like Barclays, J.P. Morgan, Bank of America and Goldman Sachs.

WhatsApp:

Whats App | FGS

The case of WhatsApp is another classic example of hr outsourcing and how it changed the company forever. Back in the year 2012, the company had only 35 employees in their Mountain View office, out of which 5 were part-time employees. But the same company became one of the most renowned chat service providers in the world with downloads crossing more than 50 million in just 3 years after its launch. However, the company was brought by Facebook for 19 billion dollars after 2 years of its launch in the year 2014.

At that time the company was facing a cash crunch and barely had any operating capital and it needed to keep its operating cost as less as possible. At that point in time, WhatsApp went to Eastern Europe in search of technical talent and trained manpower in order to develop and launch the product. The company was successful in hiring offshore app developer from Russia and got highly trained and professional engineers who ultimately developed the app and made it so much successful. After that, the company was restructured in such a way that the in-house workforce looked after the day to day operations and customer support while the app development was outsourced from offshore.

Klout:

Klout | FGS

Klout which is a startup opt for outsourcing in order to grow its business and was highly benefitted by adopting offshore outsourcing. The founder of the company Joe Fernandez in order to make his idea a reality went to Singapore and hired a team there which was custom made as per his preferences.

He stayed there for four months and worked hand in hand with the developers in order to build the test version of his product. Joe himself funded the first version of the product with the help of his friends and family members and the initial funding was only $200,000. From there he took the company forward and accumulated a funding of 40 million dollars within a span of just 4 years. Later in the year 2014, the company was sold to Lithium Technologies for 200 million dollars.

StudyTube:

StudyTube| FGS

This is an online education platform and got success only after it outsourced its programmers from other countries. This Netherland based startup relied on part-time engineers at the initial stages. But later on, the company realized that it cannot create good products and survive in the market by this strategy and hence started outsourcing talented engineers from the nearby countries and also from Ukraine. At present, the company has already generated an investment of €1,500,000 in 3 rounds and still growing further.

 

Thus to conclude we can say that outsourcing is a very lucrative option for businesses around the world. You can get the best talents, skills and technical know-how in the lowest possible cost. The above mention companies are some of the best examples of how you can grow and become successful by adopting outsourcing strategies. You need to plan everything in the right way and outsource the critical processes from the experts in their field in order to become successful.