need not depend on local and in house talent alone. Some of the most successful
businesses and brands employed outsourcing to delegate specific tasks to expert
companies. Here are some of the big names that found outsourcing successes.
is a strategy that companies like Procter & Gamble (P&G) and Unilever
have used to their advantage. As a product company, P&G must release items
before their competitors. To address this necessary strategy, they outsourced
some of their R&D activities. This move led to a 60% increase in innovation
productivity. More than $10 billion in revenue came from 400 new products. This
prompted P&G to delegate half of its product innovation towards outsourcing
expansion includes operations across 24 countries—all of which were using
multiple enterprise resource planning (ERP) systems. But in 2005, the company’s
leadership team decided to integrate these multiple ERPs into a single system
that would be used across Europe. Such an endeavor required a team of experts,
so they outsourced this project to another company. As a result, Unilever was
able to save € 700 million annually in its operational activities
Important Backend Tasks
Bridget Gibson, controller of Augustana Care Corporation in Minneapolis, her
job manages 17 payrolls that all have varying pay dates and benefits packages.
The non-profit care provider has also increased its senior care facilities and
has included several new employees that will receive its benefits from
Augustana. Payroll is considered the company’s biggest expense, with $35
million paid to its 1,500 employees.
was aware of the in-house processing within Augustana. But she soon discovered
the laborious and complex execution of many tasks, such as entering the payroll
three times: first into a time clock, second into the payroll software, then
lastly into the general ledger software. Since everything was done manually,
there was a larger likelihood of human error. Gibson decided to outsource its
payroll and other related services. Outsourcing success was found through
Minneapolis Payroll Control Systems (PCS), which handles Augustana’s payroll
processing, tax filing, time clock, direct deposits, routine and custom
reporting through an integrated human resources software. The program removes
the need for redundant data entry and the likelihood of human error.
tech startup companies have relied on outsourcing companies to accelerate their
current successes. Github’s CEO and co-founder Chris Wanstrath met Scott Chacon
in San Francisco and saw how Scott had the right understanding of Gits. From
there, Scott wrote Github’s backend as an outsourced resource before he became
the company’s CIO.
work messaging app, Slack, can credit its sleek and functional design to an
outsourced company. During the company’s early stages, Slack hired design firm
MetaLab to redesign the logo and improve the company app and website. Apart
from outsourcing success with Slack, MetaLab is responsible for the brand
assets of Coinbase and Brit+Co.
Ma’s Alibaba began by outsourcing its development to a US firm. The US offered
the skills Alibaba required to gain a competitive edge against eBay. During
this period, overseas talent had yet to meet the same skill set as the US. As a
result, Alibaba successfully competed with eBay despite Chinese internet
owner Jack Groetzinger also employs the capabilities from outsourced labor. The
Manhattan-based ticket price predicting company employs contractors through
Upwork (previously oDesk) and others who are based in places such as Pune
Bluff, Arkansas to the Philippines.
in an Automobile Business
distribution and processing company JM Family Enterprises decided to outsource
all of the software, operations, and mainframe hardware as mainframe usage
leveled off at $8.2 billion. To minimize such a cost, the outsourcing vendor
made sure operations were optimized to ensure the on-time submission of
month-end financial reports.
Manufacturer a Step Ahead
personal computer company Acer employed capability sourcing to become the
world’s second-largest PC manufacturer. Acer executives looked into the
company’s strengths and weaknesses. Branding and marketing were among their
major strengths, but they decided to outsource other fields they hadn’t
mastered, such as manufacturing. As a result, Acer enjoyed faster-growing sales
and market share gains. The company’s 6,800 employees are less than a tenth in
size compared to its main competitor.
the Benefits of Outsourcing
Coast entrepreneur Mark McRae owns over 30 companies, alongside raising three
children with his wife. Yet he managed to generate $280 million in both online
and offline sales for all said businesses. He revealed that outsourcing helped
him gain such figures, delegating tasks to countries such as the Philippines,
South Africa, the USA, and Malaysia.
number of companies also report finding outsourcing success. Squawker’s
partnership with an outsourcing company led to its platform solution. JPay.com
employed outside developers from Israel, China, and India for their
infrastructure and technology.
Your Outsourcing Success
these stories show how proper delegation and managing your outsourced processes
provide guaranteed business growth and faster success. If you’re considering
growing your company, then look no further than Paragon Outsourcing to provide
the expertise in fields such as finance, accounting, data and research,
customer service, and other modes of BPO service delivery. By partnering with a
capable outsourcing company, you can focus on current projects while leaving
future growth and development in the hands of experts. It’s never too late to
find your outsourcing success
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