If you would like to start small but have got ambitious plans to become big and then huge, outsourcing is just right for you.
Not saying that local hiring is not good but what outsourcing does has got amazing value and does the job in most scenarios the heavy lifting for a lower price.
I already discussed the differences between offshoring, outsourcing, the different types of outsourcing. Please check them here: SHOULD YOU OFFSHORE OR OUTSOURCE
Let’s now go straight forward and check the biggest names in outsourcing, how outsourcing made them great and how they added true value to their brands through outsourcing:
Whatsapp is an excellent example in the industry starting with low investment (250 000), an office of 30 people in-house staff USA involved mainly with customer support developers completely based in Russia. It launched in 2012 and sold for 19 bln to Facebook just a few years ago. Some years later WhatsApp relocated the offshore developers to the USA.
Initially, the Chinese eBay outsourced the development to the USA.
The niche was found by the owner when he ordered a PayPal button from his website at a cost of $50. Then he started selling the software and now they have got the longest subscribers list.
The CIO of the company Scott Chacon started as a git expert of the company initially as an outsourced contractor as the company couldn’t afford to hire him full time and in-house. He helped them build the Gist backend, now 31 mln people use GitHub to develop software and learn.
Google is famous for taking care of its in-house employees and actually they can afford a lot of people to work permanently with them. They outsource when they work on projects and some of them turning into long term jobs such as Google Adwords.
Slack outsourced their design and UX — to a design team called MetaLab and this is the main reason for their success.
In 2003 Niklas Zennstrom (Sweden) and Janus Friis (Denmark) reached developers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn in Estonia with them to build a web platform for calling, video conferencing and instant messaging. Two years later Skype became a huge success and eBay acquired Skype Technologies for $2.5 billion.
Transferwise declines the assumption that they do outsourcing, offshoring, and consultants but they do not decline the fact that they have got developers spread across Ukraine (Lviv) while the headquarters is based in Estonia.
It is made by remote developers for remote teams. It launched in 2004 by recruiting freelance developers, when it began big, they moved them to full-time jobs and now employ 50 people in 32 countries.
Based in Netherlands they started using part-time engineers but shortly after decided to move to a more successful business model and do nearshore using developers from Ukraine instead. Dut to this measure the startup has already secured investment od €1,500,000.
Pricena app helps online shoppers in the Middle East make well-informed purchasing decisions by offering accurate information on products sold across the UAE, Saudi Arabia, Egypt, and Kuwait. The founder of the app Haneen Debian is sharing in the case study of the app on Daxx website: “The offshore developers are my full-time employees who’re just working from Daxx’s office in Ukraine, and I’m very happy with them”.
The founders of Octopus did have some experience with outsourcing and happy with the results decided to move to something long-term as nearshoring. They chose Ukraine because of the language – three of their employees in- house were already speaking Russian.
“Citi is one of the most experienced banks for offshoring both banking operations and IT processes,” said Phil Fersht, the CEO and head of research at HfS, an outsourcing research and advisory firm.
“This is a well-thought-out strategy to shift much of their back office to low-cost locations where they have plenty of capacity to scale-up operations, notably India and the Philippines,” Fersht said.
The founder of Klout went to Singapore and hired a development team there, spent 4 months there and eventually they deliver a beta version of the product. The seed was only 200 000 but for less than 4 years the company attracted 40 mln funding and then was sold for 200 mln.
Expensify uses a third-party crowdsourcing job site called Mechanical Turk to check manually the receipts. Their approach was really controversial as it has been revealed to the public by an employee as sharing such sensitive information with random people is a great risk exposure to hackers.
The Groove founder Alex Turnbull had the idea but not exactly the skills and finances so he outsourced the entire development process to a web outsourcing company. Today, Groove has $2.5 billion in yearly revenue.
Opera is the light web browser launched back in 1995 and firstly developed by developers spread around 25 countries worldwide. The foundation of the company has got Norvegian roots and started as a project, quickly after launched as a separate organization.
The company launched back in 2009 wit outsourcing from the very beginning, the founders delegate the development of the website and database on freelance developers. Even now the company has got an in-house internal team of 100 people but still relies on outsourced contractors.
In 2003, P&G developed outsourcing development with Jones Lang LaSalle for the management of offices and technical centers, facility management, project management, and strategic occupancy services, including maintenance and security but not for a day to day outsourcing but full transformation. The deal spanned over 60 countries.
Basesin UK and Australia RTL works in a collaboration with a Ukrainian company to augment staffing needs, meet ongoing needs, demand and requirements. Outsourcing a huge part of their business was of great help to grow, develop and take a big pie of the market.
Outsourcing hasn’t yet reached its’ full potential and mostly certain the boom of outsourcing is just yet to come with so many startups launching every day.
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