BPO as the ladder to success: 10 Stories of firsthand experiences
- BPO as the Ladder to Success: 10 Stories of Firsthand Experiences
How has BPO helped people and companies succeed?
BPO and outsourcing have helped entrepreneurs launch firms, big companies cut costs and innovate, and workers build better lives.
- Founders like Jack Ma used outsourcing to build global brands.
- Giants like P&G, Skype, and Unilever grew through smart outsourcing.
- Everyday BPO employees found steady, life-changing work.
The rise of the BPO industry is clear. So many people and families have gained from all it offers. These outsourcing success stories show BPO as a real ladder to success.
Outsourcing does not only help inside the workplace. In fact, entrepreneurs use it too. The idea can feel daunting at first, especially for small and startup firms. However, many have done it and thrived.
For a solo founder, doing everything alone can feel overwhelming. So outsourcing is often a smart move. In addition, it brings fresh views on areas you do not know well. In short, outsourcing promotes learning and thinking outside the box. To start, it helps to weigh the broad benefits of outsourcing.
Below are famous people, startups, established companies, and BPO employees who prove outsourcing is a road to success.
The Entrepreneurs: How outsourcing built up their business
Are you an entrepreneur? Then you might ask, “Why should I outsource?” The answer is yes, you can. In fact, even small businesses do it and gain from it. So here are some famous founders who did the same. New founders can also review the outsourcing for startups guide for a clear path.
- Jack Ma of Alibaba: The secret to his success
- Noah Kagan and how outsourcing helped his business
- Mark McRae, a multi-millionaire entrepreneur with 30 businesses
- Vivek Wadhwa, the passionate educator on crowdsourcing
- CIO Brenda Orth and her IT outsourcing success
- Myrna Padilla of Mynd Consulting: Through the eyes of an OFW
1. Jack Ma of Alibaba: The secret to his success
First off, Jack is a nickname from a foreign friend he met when young. Jack Ma did not start with a big career. In fact, he began as a tour guide. Even then, he had the founder mindset that later built Alibaba, China’s top online market. In time, it even passed eBay.
He wanted English lessons, so he traded tours for them. Meanwhile, he made sure to build connections. He was young, yet his skill was clear.
His family was not well-off. So he saw education as a way to rise. Despite his drive, he failed the college test twice. Still, that same drive pushed him to try again. As a result, he passed and joined Hangzhou Teacher’s Institute.
After graduation, he applied for many jobs. Sadly, he got rejected 12 times. Still, his grit won out. So he landed a job as an English teacher for $12 a month.
Even at low pay, Jack gave his best. In fact, he was a natural, and he loved his students.
Then one trip changed everything. During that trip, the internet was booming, and Jack was hooked. His first search was the word “beer.” However, he saw no results from China. So he decided China needed its own internet company.
These were his first steps toward Alibaba. He gathered friends and pitched his idea. As a result, they backed him to start it. As he met more people, he befriended Jerry Yang, Yahoo’s co-founder. So Jack entered the world of the web, which became core to Alibaba.
Jack was confident, yet humble. He admitted he did not know everything to make his idea work. So he thought about why he should outsource. In short, he knew others could build the web side better. As a result, his net worth reached $25 billion, and he was named China’s richest man.
2. Noah Kagan and how outsourcing helped his business
Noah Kagan was Facebook’s 30th employee and an early Mint.com hire. However, his fame did not start on a high note.
Did you know he was fired from Facebook? People saw him as arrogant, and he leaked company plans. In addition, his work slipped as the firm grew fast. So he could not keep up.
He could have made millions if the job had lasted. Sadly, it did not. So he gained nothing from it.
Still, he learned from his mistakes. As a result, he turned things around, as his success now shows. He also recalled Mark Zuckerberg’s ethic: build something, do not just chase profit.
So Noah made a comeback. He founded AppSumo/SumoMe, a daily-deals site. Today, it keeps growing and draws many entrepreneurs.
One good thing about outsourcing is that it opens new views. Noah’s road to success started with just $50. With no money from his old job, he took a risk. So he outsourced the web work to a skilled developer for that amount. The result? The site looked pro and promising. Next, he outsourced more by selling Imgur Pro subscriptions. So he went from $50 to $2 million.
3. Mark McRae, a multi-millionaire entrepreneur with 30 businesses
Mark McRae is a husband and father of three, and he owns 30 companies. So he is one big reason outsourcing spread worldwide.
For him, outsourcing matters for these reasons:
- Cost-cutting
- Better access to skilled professionals
- Reducing overheads
- Flexibility with staff
- Increase in efficiency
- Reducing turnaround time
- Generating more profit
Mark also believes that if a computer is part of a job, you can outsource it.
Furthermore, he says outsourcing offers a wide pool of global talent to finish work well. So he is an expert in this field. As a result, his firms keep outsourcing and give the practice a good name.
4. Vivek Wadhwa, the passionate educator on crowdsourcing
Vivek Wadhwa believes in outsourcing. In the 90s, it scared many in the US. However, Vivek saw its future. Some firms did go offshore. So why did US firms still outsource? Reasons vary, yet it clearly grew the world economic pie.
In his research and books, Wadhwa used both outsourcing and crowdsourcing. After a study on Silicon Valley’s strength, he found something odd: no women worked in the tech firms. For him, that showed a strong bias.
Because of this, Vivek started a project at Stanford Law School. He wanted to survey women. So he outsourced project tasks to one woman in Washington DC.
His team also outsourced interviews to students. Interestingly, they gathered data by phone and online. So the research could happen anywhere.
Next, he set out to write a book on the gender gap. However, he needed more insight. There was a catch: writing a book is a full-time job that takes years. He decided he did not have the years.
So he emailed his private list and outsourced the crowdsourcing task. The job was to reach out to their networks. Amazingly, 500 women signed up within two weeks.
Then Vivek and his team built a site where women shared their views. They even learned from each other.
What could take years took just six weeks. As a result, the team gathered enough to write the book. So outsourcing and crowdsourcing helped both the team and the women who took part.
5. CIO Brenda Orth and her IT outsourcing success
People often ask, “Why do companies outsource?” However, not only private firms do it. In Pennsylvania, outsourcing helped serve citizens well. So a sharper question follows: “Why IT outsourcing?”
Brenda Orth and her team built Pennsylvania’s Data PowerHouse (DPH) in 1997. It came from a government study on better public service. They saw that IT was key here. In addition, this unit had to run 24/7 for critical work.
So the DPH chose to outsource its delicate operations. As a result, Pennsylvania became one of the first states to succeed at it. In short, it is a great example of why to outsource IT services.
Some notable results of outsourcing were:
- Eliminating redundancies in the operations
- Redeployment of resources to other key initiatives
- Cost-cutting
In a nutshell, outsourcing is a useful tool for government too, not just private firms.
6. Myrna Padilla of Mynd Consulting: Through the eyes of an OFW
Myrna Padilla is no ordinary woman. Before Mynd Consulting, she faced many hard events. Life was tough.
Myrna grew up poor in a Philippine province. Early on, she learned to help meet her family’s needs. In the face of poverty, hope was her only weapon. So she dreamed of a better life for her family.
She knew local work would not be enough for her daughters. So she chose to work abroad as an overseas Filipino worker (OFW). By her account, no pain matched being apart from her daughters. Still, she dreamed for them, so she made the sacrifice.
Her drive led her to a kind family in Hong Kong. There she worked as a domestic helper. The family treated her like their own. She cared for their eight-year-old son, who showed her the computer. As a result, her life changed.
Myrna was an eager learner. So she founded an online group, the Mindanao Hong Kong Worker’s Federation. In it, members shared their OFW stories. They also met every Sunday, their only day off.
Myrna dreamed for fellow OFWs who had to leave their families to earn. So she thought of a job that would not force them away. She thought about BPO, even though she did not know it well yet. So she chose to harness the power of the internet.
Back in the Philippines, she was set on making her dream real. Mynd Consulting began with two staff and one old computer. Because of her passion, it now serves US and European clients.
Again, firms outsource for many reasons. For Myrna, it lets Filipinos earn without leaving their families. She also fights human trafficking by funding the OFW Watch project, a mobile app that empowers women against slavery.
These founders prove outsourcing works. Next are the companies that have thrived with its help.
The companies: How outsourcing helped them survive all odds
Why do companies outsource jobs? These firms share their own stories.
- Procter and Gamble: Outsourcing increased their innovation
- Skype: From outsourced developers to business partners
- Unilever: Saving operational and labor costs through outsourcing
1. Procter and Gamble: Outsourcing increased their innovation
Procter and Gamble (P&G) is famous for its products. Many people worldwide trust them. However, fast success brings fast-growing demand. So P&G had to work harder to keep pace.
P&G had always focused on innovation. In fact, research is core to the firm. However, a huge business has many parts to manage.
Management is one reason firms outsource. So P&G outsourced IT apps, IT support, and data centers to HP. It also gave payroll, expatriate, and travel services to IBM. In addition, it handed floor and building management to JLL.
The JLL deal was groundbreaking. It was a first for both firms, so it challenged them. P&G wanted JLL to run its facilities, not just maintain them.
So P&G changed the usual model. Instead of outsourcing daily work, it aimed for results and change. As a result, nearly 600 P&G staff became JLL staff through the process.
Outsourcing let both firms work in a win-win way. So they shared value through performance-based goals.
Even as the client, P&G still gave JLL credit. They shared the glory in what they call a “vested” agreement.
Contract leader Larry Bridge said the shared direction was why it worked. In short, they moved the same way instead of negotiating across the table.
As a result, innovation output rose 60 percent. In addition, 400 new products earned over $10 billion. JLL also became “supplier of the year” within five years, among 80,000 suppliers.
So outsourcing does more than cut costs. It can also build strong ties. For P&G, outsourcing plus good intent led to success.
2. Skype: From outsourced developers to business partners
Skype is a top online communication tool for work and home. As the app grew, so did the company.
Why are jobs outsourced? Even early on, Skype knew it needed expert help in some areas.
Before it was popular, Skype hit technical snags. So the team outsourced the app’s development to three developers from Estonia: Priit Kasesalu, Ahti Heinla, and Jaan Tallinn. At first, they were just contractors. However, they soon became business partners. As a result, Microsoft later bought Skype for $8.5 billion.
So this shows the value of humility. Asking for help can lead to a far better place.
3. Unilever: Saving operational and labor costs through outsourcing
Unilever is a trusted company. Still, that did not mean smooth sailing every time. With so many branches, it had a lot on its plate.
Different branches used different ERP systems. So Unilever wanted one ERP system for all of Europe. However, it was not strong in IT. So the company outsourced its ERP development to a third party. The result? A huge 700 million euro yearly saving in operations.
By outsourcing what it did not do well, Unilever could focus on its strengths. As a result, it eased the load on staff. In addition, it saved a lot to use elsewhere.
These three firms outsourced for different reasons. Still, all of them gained a great deal.
As noted, BPO helps more than owners and founders. It helps employees too. So next are the workers who share their own success stories.
The employees: How outsourcing shares a big role in their lives
Why do US firms outsource? Why do firms outsource project work? There are many answers. Still, one thing holds true: outsourcing offers real help. So here are two workers whose lives it changed.
- Lori Llanes Flores, a mother of two beautiful kids
- C.A. Rodriguez, a single mom of a five-year-old son
1. Lori Llanes Flores, a mother of two beautiful kids
Lori was a hopeful wife who worked hard for her family. However, she found out her husband had an affair. So she left him and took her two daughters.
Then she chose to work abroad as an OFW to support them. Sadly, a terrible event struck: one daughter was stabbed and died. It was extremely hard, since Lori was overseas. In fact, her boss would not even let her come home to bury her.
She tried to build a business abroad. Unfortunately, it did not go well. So she went home and tried the BPO industry.
She was a diligent worker who never wanted to be late or absent. In fact, she once borrowed fare money from a neighbor when her budget fell short.
Her hard work paid off. So she won the “Iron Lady” award for perfect attendance, which came with a cash prize.
As a result, she put her daughter through college. After that, she followed her passion. Now she is a Zumba instructor.
2. C.A. Rodriguez, a single mom of a five-year-old son
C.A. Rodriguez loved to party before she got pregnant. Then she had to raise her son, Xander, alone. This was due to a toxic marriage.
BPO was not her first choice. However, she felt it was the right job for her and her son.
At first, she felt guilty about leaving him alone at night. Still, Xander was cooperative and soon learned to sleep without her. In time, they got used to the setup.
C.A. was happy at work. In fact, she was promoted to team leader after one year. Beyond pay and benefits, flexibility is one big plus of outsourcing for her.
So, in a nutshell, outsourcing drives success for workers, owners, and founders alike. There are living proofs of this. Are you a small business owner or just starting out? Then you may want to outsource some tasks to serve clients better. The pros and cons of outsourcing for small businesses are a good place to start.
Now that these famous stories inspire you, it is time to learn where the top outsourcing destination is. In fact, the Philippines BPO industry leads the way, and outsourcing to the Philippines remains a top choice.
Frequently asked questions about BPO success stories
How can outsourcing help a startup succeed?
Outsourcing lets a startup access skills it lacks in-house. For example, Noah Kagan built his site with a $50 outsourced developer. As a result, founders save money and grow faster.
Do big companies really benefit from outsourcing?
Yes, they do. For example, P&G, Skype, and Unilever all gained from it. So they cut costs, raised innovation, and built strong partnerships.
How does BPO help employees, not just employers?
BPO gives workers steady jobs, growth, and flexibility. For example, Lori and C.A. built better lives through BPO work. So the gains reach whole families.
Why is the Philippines a top BPO destination?
The Philippines offers skilled, English-speaking talent at fair cost. In addition, its workers are known for strong service. As a result, many global firms outsource there.
What can I learn from these outsourcing success stories?
The lesson is simple: you cannot do everything alone. So smart outsourcing frees you to focus on your strengths. As a result, it can be a real ladder to success.
Key takeaways
- BPO and outsourcing have helped founders, big firms, and workers alike.
- Entrepreneurs like Jack Ma and Noah Kagan used outsourcing to grow fast.
- P&G, Skype, and Unilever cut costs and boosted innovation with it.
- BPO jobs changed the lives of workers like Lori and C.A. Rodriguez.
- Smart outsourcing frees you to focus on what you do best.
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