At the start or during the development of any company, there are many complex processes. Implementing those requires the involvement of qualified specialists. Let’s say you face complicated and expensive tasks that other talented professionals can solve for a reasonable fee. Or you would like to transfer some of the company’s simple processes to another party to focus on more global issues. Developing a competent outsourcing strategy will certainly help solve many of your problems.
Successful outsourcing examples and case studies
Almost all startups and software companies in developed countries hire specialists to fill the missing talent spot while significantly reducing their costs for the implementation and promotion of projects. In this article, we present several IT outsourcing examples so that you can easily evaluate the benefits of outsourcing, just like such giants as Google, Slack, Microsoft, Alibaba, GitHub, and others did in their time.
Startups and small companies use this communication channel very successfully. Slack has over 12 million active users these days. Its simple and neat design with a trendy logo follows the latest global messenger trends. Although the creation of logos, marketing website design, and much of the software for creating web and mobile applications has been outsourced lately.
Back in 2012, Butterfield, with the help of MetaLab’s UI specialists, developed the Slack app from the ground up. This stage was the beginning of the successful use of outsourcing in product development.
This outsourcing case study clearly demonstrates Slack’s correct strategic decision to hire an offshore company. Even at the start of application development and at the most important stages of its upgrading, outsourcing has borne the desired results. Further, after implementing the prototype, a full-fledged development strategy of the organization itself was developed with the involvement of outsourcing.
Being one of the best communication channels in the world, WhatsApp allows for staying in touch with your friends and family and maintaining business connections using this messenger. The company was so successful that Facebook decided to buy WhatsApp for $19 billion to get rid of its Messenger app’s competitor.
One of the critical factors that affected the company’s remarkable success was the involvement of outside specialists. By hiring teams from Eastern Europe, WhatsApp has moved out of the charts on Google Play, the App Store, and other platforms, thereby significantly outstripping the original SMS technology.
In 2018, Bloomberg magazine determined that the number of Google contractors exceeded the company’s number of employees. The first time the company used outsourcing was in 2011, submitting over 1,000 jobs to AdWords support. The next step in outsourcing was a partnership with Latin American technology service provider Globant in 2014. This collaboration has proven fruitful in the development of Project Ara and related software products.
Today, Google’s permanent team consists of about 89,000 developers. Nevertheless, despite the huge team, the company clearly understands the benefits of the outsourcing strategy and successfully implements it in its business processes and projects. This strategy allows them to find new talented people and reduce the cost of hiring employees significantly. As a rule, the latter is most often the determining factor in making decisions on attracting outside specialists.
This is the Chinese market’s version of eBay, which surpassed the $ 54.4 billion mark. This is one of the outsourcing case study examples that would hardly have become such a giant if it had not entrusted the initial design and development of websites to the specialists of an American company. In this case, it is precisely the fact that outsourcing was not associated with saving resources but with the involvement of talented specialists. At that time, there were simply no such people in China that could help the company. Another priority of the company was to address the audience of buyers in two languages, Chinese and English to expand its areas of influence in the market significantly.
This is an IT outsourcing case study in the programming field. Thanks to its open-source code, it has been and remains a favorite website for collaborative software development among users, with about 23 million members worldwide. At the very start, the website did not have sufficient financial resources, and hired Scott Chacon (a freelance employee) to write the backend of the website. Thus, the GitHub backend was outsourced. Nowadays, it hosts about 64 million projects.
Having sufficient financial resources, this giant could surely afford to hire a team of qualified developers. However, the company gave preference to developing ideas of outsourcing strategy. In 2005, the company’s team reached 200,000 employees worldwide, and the sphere of influence expanded to several dozen countries. To unify the various ERPs in its field, this successful outsourcing case study took the plunge by outsourcing the required specialists. Thus, it made it possible to avoid damage to the internal focus of the company. Today, the company’s net profit is estimated at 9.808 billion euros.
If you’re looking for software, e-books, tutorials, and more, then AppSumo is a treasure trove of daily suggestions for everyone. Initially, the company’s activities were focused on SaaS, but now the range has expanded pretty significantly. Noah Kagan, a former Facebook and Mint.com employee, set up an outsourcing venture as much as possible while paying only $50 to integrate with PayPal. Today his venture is valued at $2 million and has about 700,000 subscribers. AppSumo was initially seen as a side project, hence the need for outsourcing, which ultimately led to its huge success.
Another story from interesting outsourcing success stories is about one of the most popular messengers for large and small businesses. Of course, Skype can be used for private communication with friends and relatives, for business negotiations, and correspondence. One of the most useful features is to conduct online conferences with a large number of users at the same time.
The idea and prototype of this messenger come from Sweden and Denmark. But the development of the internal platform was transferred to professionals from Estonia in 2003. These same developers created what we all know so well and use with big pleasure now. Thanks to the great functionality of video chats, instant messaging, and file transfer, Skype has become an almost indispensable tool in maintaining and expanding contacts among users.
No wonder why after two years, eBay acquired Skype for $2.5 billion, and after another six years, such a giant as Microsoft paid $8.5 billion for it. This is just one of the software outsourcing examples that drew attention to the huge potential of IT outsourcing in Eastern Europe when some of the developers’ projects were transferred to different developing countries.
Despite all the above-mentioned successful stories of the world’s giants about outsourcing, this still remains a difficult task for many companies. Trends in modern IT technologies indicate that it is possible and necessary to consider and implement an outsourcing strategy. Still, at the same time, you need to clearly understand that this can both help in creating a project and ultimately destroy it. A lot depends on the professional qualities of the specialists you hire.
However, the benefits of outsourcing are pretty obvious. You will definitely get an excellent opportunity to implement your ideas at a reasonable cost, with having more flexibility, a better skillset, and complete dedication. The most important thing is to carry out qualified control of outsourced projects to reduce all possible risks.