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Top US companies that outsource their operations

Top US companies that outsource their operations

Large corporations with headquarters in the United States wouldn’t be where they are now without the help of outsourcing companies. It is a well-known fact that Philippine business process outsourcing (BPO) companies have been catering to US firms of different sizes and industries for over 40 years. There is a significant number of top US companies that outsource their operations to the Philippines.

Due to the outsourcing sector’s various advantages and counter-cyclical nature, businesses are now looking into offshore staffing as a saving grace. Now more than ever, companies are realizing the benefits of delegating parts of their business to a competent and dedicated offshore team.

Businesses usually consider outsourcing to save on costs. However, companies should know that it’s not the only good reason why this is considered an outstanding business strategy.

Apart from its cost-efficiency, offshore staffing allows businesses to utilize the impressive global talent pool located on the other side of the world. Outsourcing is not limited to call centers, customer service, and manufacturing roles anymore. Companies can delegate skilled roles including (but not limited to): engineering, information technology (IT), telehealthcare, and human resources.

Top US companies that outsource their operations

Here are some examples of US companies that are successfully outsourcing to the Philippines.

1. GoogleMultinational technology company
2. FacebookSocial media conglomerate
3. Unitedhealth GroupAmerican managed health care company
4. Wells FargoFinancial services firm
5. NikeFootwear manufacturing company
6. Hewlett-Packard (HP)Information technology corporation
7. IBMTechnology and consulting enterprise
8. American ExpressFinancial services corporation
9. The Coca-Cola CompanyBeverage corporation
10. LinkedInEmployment website

Google

Google

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It’s safe to say that we all know Google – the world’s number one search engine. Google is an American multinational technology company, which has gained various acquisitions and expanded to offer different services over the years. It is one of the biggest US companies that outsource its operations to the Philippines.

Google is the world’s most visited website due to its impressive knowledge system and accessibility. However, this is not because of the firm’s in-house staff. In fact, Bloomberg reported that 2018 is the first year that Google’s outsourced employees outnumbered their direct hires.

How they outsource

Google outsources various roles in the Philippines, ranging from IT services providers, app development teams, and software development to analytical consultants. Google’s Manila office is highly responsible for the firm’s success, especially in the Asia-Pacific region.

To learn more about Google’s Manila office, visit their website.

Facebook

Facebook

Facebook is a free online social networking site that provides a convenient way to connect with friends and family. The company was launched in 2004 and is based in Menlo Park, California, United States.

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Apart from being the biggest social media website, Facebook is recognized for its multiple mergers and acquisitions. So far, they have acquired around 82 companies, including WhatsApp, Instagram, Oculus VR, and Giphy, among others.

How they outsource

Facebook has only expanded to the Philippines in 2016. The firm hires outsourced teams to work as customer support providers, IT technicians, and content moderators.

Content moderators filter and delete dark, violent, and offensive content from circulating around the social media site. Most of the time, content moderators for Facebook are outsourced through third-party providers like Accenture and Cognizant.

To learn more about Facebook’s Manila office, see here.

UnitedHealth Group

Unitedhealth Group

UnitedHealth Group Incorporated is a 43-year-old for-profit managed health care company based in Minnesota, United States. It is considered the largest healthcare company in the world by revenue. It is ranked 7th on the 2020 Fortune 500 list.

UnitedHealthGroup provides health benefit plans and insurance plans to individuals and employers alike.

How they outsource

Optum, a part of the UnitedHealth Group, outsources its global solutions team to the Philippines. The company currently seeks the services of its offshore team for its consulting, customer service, project management, health care operations, engineering, and analytics needs.

To learn more about UnitedHealthGroup, visit their website.

Wells Fargo

Wells Fargo

From credit cards to loans to mortgages and online banking, Wells Fargo has got it all for you. The multinational financial services company based in California, United States, is also the fourth largest bank in the country by assets.

Wells Fargo has offices in 31 countries and territories to provide banking, investment, and mortgage products, and services. It’s also ranked 30th on the 2020 Fortune 500 list.

How they outsource

Wells Fargo outsources its operations to the Philippines’ wide pool of dedicated professionals. Currently, the firm’s offshore staff take the roles of fraud specialists, customer support representatives, payroll consultants and analysts, process engineers, financial accountants, and more.

To learn more about Wells Fargo, visit their website.

Nike

Nike

Nike, as we all know, is the largest distributor of footwear, apparel, sports equipment, and accessories. The company was founded in January 1964 and lists shoe companies Converse and Brand Jordan as subsidiaries.

How they outsource

Nike wouldn’t be able to cater to its millions of customers and fans around the world if it weren’t for offshore outsourcing. The company delegates the manufacturing processes of its products to countries like the Philippines. It started with footwear, but the firm now also outsources the manufacturing of its apparel and other equipment.

To learn more about Nike, visit their website.

Hewlett-Packard 

Hewlett-Packard (HP)

Hewlett-Packard, more commonly known as HP, is a computer and software services manufacturer headquartered in Palo Alto, California. It was founded in 1939 by Bill Hewlett and David Packard.

In 2015, Hewlett Packard company separated into two entities: HP Inc. and Hewlett Packard Enterprise.

To learn more about Hewlett Packard, visit their website.

How they outsource

Even if they have separated into two firms, both HP and Hewlett Packard Enterprise continued to outsource to the Philippines. The firms benefit from Filipino professionals’ dedication to providing excellent customer support and IT services.

IBM

IBM

International Business Machines Corporation (IBM) is a multinational technology and consulting company founded 109 years ago. The firm, which is headquartered in New York, serves clients in 170 countries.

IBM is considered one of the world’s largest employers. The company outsources around 70 percent of its employees.

To learn more about IBM, visit their website.

How they outsource

IBM mostly relies on its offshore staff to take care of its IT functions, including network management and taking care of their (and their clients’) IT infrastructures.

IBM utilizes outsourcing for its main office, and it also offers outsourcing services to other companies. Further, the firm provides cloud services, technology consulting services, digital workplace services, and more.

American Express (Amex)

American Express

American Express (Amex) is a global financial services company, best known for its credit card and banking services. The firm was founded in 1850 and is headquartered in New York City.

Further, Amex also offers non-card products like traveler’s checks and financial advisory services.

To learn more about Amex, visit their website.

How they outsource

With offices in more than 40 countries, it’s impossible for Amex’s in-house team to handle all the back-office operations.

The company outsources the majority of its customer support, IT support, and collections services to its office in the Philippines.

The Coca-Cola Company

The Coca-Cola Company

The Coca-Cola Company is a 128-year-old all-American multinational beverage company corporation headquartered in Georgia, United States. Incorporated in Delaware, the company is focused on manufacturing and retailing non-alcoholic beverages and syrups.

To learn more about the Coca-Cola Company visit their website.

How they outsource

The company has had an established presence in the Philippines since 1927 but only acquired full ownership of The Coca-Cola Company in February 2007. The firm currently employs almost 10,000 regular workers and has 19 manufacturing plants and around 50 sales offices and distribution centers all over the country.

LinkedIn

LinkedIn

LinkedIn is the most popular employment-oriented social networking website in the world. Users mainly utilize this platform for professional networking and job hunting/recruiting. The website can operate on desktop or mobile devices through the LinkedIn app.

The company was founded in 2003 and is headquartered in California, US. To learn more about LinkedIn, visit their website.

How they outsource

LinkedIn serves millions of users worldwide. It only makes sense that it outsources its back-office support functions like customer support to third-party providers in the country.

Common outsourcing services

Outsourcing has been on the global market now for decades. So much so that it has evolved into offering assistance in several functions within the business world.

Here are the most common services that you can outsource to a third-party service provider.

Customer support

Building a customer support team from scratch can be quite challenging even for large companies. You have to spend a significant amount on recruiting and hiring employees and providing the right tools that they would need for the job.

That is why customer support is among the most outsourced services in the world. Whether it be call centers, email support, and even social media management, outsourcing agencies can help you find the right way to provide assistance to clients around the world.

Marketing

Marketing a business’ products and services can be tricky. You have to always be armed with the right marketing strategy that could generate a lot of attention from your target market. Besides this, you also have to stay ahead of your competitors in the industry.

That is why a vast majority of companies outsource this service. Aside from getting insights from outside resources, hiring an outsourced team helps elevate your marketing approach and puts your products and services at the forefront of the global market.

US companies that outsource
Common outsourcing services

IT

IT outsourcing is one of the most common outsourced roles in the world. Aside from serving as a cost-cutting measure, hiring an outsourced IT team also helps companies to focus on their core tasks.

Even major companies are also choosing to outsource their IT services. Hiring remote teams, especially in other countries, provides every business access to a diverse workforce that has various experiences in the tech field, at lower costs.

Human resources

HRs handle a lot of management work for the company. They take of the recruitment and onboarding of new employees, as well as payrolls and benefits of their entire staff.

The good thing is that these services can also be delegated to an outsourced team. There are several service providers who are more experienced in screening suitable applicants for a company, as well as checking the references of employees.

If you are expanding your operations outside of your home country, hiring an external HR service provider could also help you stay updated on the country’s standards and laws on employment.

Common outsourcing services

The Philippine outsourcing sector

The Philippine outsourcing industry employs over 1.3 million professionals (and growing). Due to the nation’s excellent English proficiency, cultural affinity to the west, and educational background, the country has become a leading offshore staffing destination over the years.

The recent technology and policy advancements made it easier for businesses of all sizes to outsource their business functions. Today, companies are realizing that you do not have to be a conglomerate to be able to seek the services of outsourcing suppliers. In fact, some BPO companies in the Philippines cater to solopreneurs and small- to medium-sized businesses – like Clark-based cloud staffing solutions provider Cloudstaff and Davao-based supplier SixEleven BPO.

These firms focus on smaller companies and provide scalable, flexible, and affordable solutions and packages.

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Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

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The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.