Outsourcing has conquered the world due to the wide array of benefits it offers to businesses. Primarily, the goal is cost reduction, and it is no wonder that freelancing has such an impact on the world. In order to save money, businesses of all sizes have decided to outsource their manufacturing, coding, customer support and other types of business processes.
Let’s take a look at a couple of businesses that now save millions of dollars by outsourcing business tasks to other companies or individuals.
Apple is one of the most valuable companies globally. This is achieved through massive investment in marketing, high-quality devices, but primarily, lowering production costs as much as possible. Even though the company is responsible for the design of their devices, they are not the ones who are actually manufacturing it. That is noticeable at the back of every iPhone where it is stated: “Designed in California, Made in China.”
By doing this, the company manages to save not millions, but billions of dollars. In an article published on Forbes, it is clear that there would be little to no profit for Apple if the manufacturing were done in the United States. The devices would simply have to be significantly more expensive, which would result in a significantly lower number of sales.
Microsoft has conquered the world with its immensely popular operating system, Windows. The company has grown and now reaches revenue in billions of dollars every year. Despite such high earning, they are also giving their best to lower their expenses as much as possible.
For example, the company made a contract with Infosys, an Indian giant that now completely runs the company’s IT help desk. In this way, Microsoft has avoided increasing the costs of new staff members, who would cost the company much more. Over the course of years, the company is going to save millions of dollars, as the signed deal is worth $100 million.
The automotive industry is no different. Outsourcing has been a way to cut significant costs during the last decade. The biggest companies are picking this route as it simply pays off in millions of dollars. This is a logical course of action, because companies of this size are competing globally, and in order to stay competitive, it is necessary for them to save as much as possible in manufacturing costs.
For example, the Daimler group decided to choose to outsource years ago. So far, it has helped the company save hundreds of millions of dollars. The trend is likely to be continued, as the recipe has been tested, and it works well.
This is a company that has grown to become one of the top small businesses in the US. At one period, around 2004, the company struggled to make their project management platform more scalable and decided to outsource the process to another company. As this phase lasted for years, the company managed to save quite a lot of money in the whole process.
This has undoubtedly allowed the company to become what it is today because, with higher costs for the whole project, there is a chance that it would never have been finished. As you can see in their story, the company’s primary focus was something completely different, and Basecamp was only one of the projects the company worked on.
As you can see, these are examples of how much money can be saved through outsourcing. It is simply the best way for big companies to grow bigger, but it is also a great way for smaller companies to grow bigger. Therefore, if you are considering to start outsourcing, it is a good idea to create a great strategy, that will allow you to slowly achieve growth.