Top US companies that outsource their operations
Large US corporations 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.
A significant number of top US companies 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 realize the benefits of delegating parts of their business to a competent and dedicated offshore team.
Businesses usually consider outsourcing to save on costs. However, US 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.
Outsourcing has grown beyond call centers, customer service, and manufacturing roles. US Companies can delegate skilled functions 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 successfully outsourcing to the Philippines.
| 1. Google | Multinational technology company |
| 2. Facebook | Social media conglomerate |
| 3. Unitedhealth Group | American managed health care company |
| 4. Wells Fargo | Financial services firm |
| 5. Nike | Footwear manufacturing company |
| 6. Hewlett-Packard (HP) | Information technology corporation |
| 7. IBM | Technology and consulting enterprise |
| 8. American Express | Financial services corporation |
| 9. The Coca-Cola Company | Beverage corporation |
| 10. LinkedIn | Employment website |
It’s safe to say that we all know Google – the world’s number one search engine.
Google is an American multinational technology company that 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 just because of the firm’s in-house staff.
Google also makes use of an extended workforce of vendors, temporary staff, and independent contractors.
How they outsource
Google outsources various roles in the Philippines, 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 Asia-Pacific.
To learn more about Google’s Manila office, visit their website.
Facebook is a free 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.
Besides 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.
How they outsource
Facebook has only expanded to the Philippines in 2016. The firm hires outsourced teams as customer support providers, IT technicians, and content moderators.
Content moderators filter and delete dark, violent, and offensive content from circulating the social media site.
Most of the time, content moderators for Facebook are outsourced through third-party providers like Accenture.
To learn more about Facebook’s Manila office, see here.
UnitedHealth Group
UnitedHealth Group Incorporated is a 43-year-old for-profit managed healthcare company based in Minnesota, United States. It is considered the largest healthcare company in the world by revenue, ranked 5th on the 2022 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 US company outsources its consulting, customer service, project management, healthcare operations, engineering, and analytics needs.
To learn more about UnitedHealthGroup, visit their website.
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.
The firm’s offshore staff are fraud specialists, customer support representatives, payroll consultants and analysts, process engineers, financial accountants, and more.
To learn more about Wells Fargo, visit its website.
Nike
Nike is the largest distributor of footwear, apparel, sports equipment, and accessories.
The US 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 worldwide without 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 its website.
Hewlett-Packard
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
Despite separating into two firms, 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
International Business Machines Corporation (IBM) is a multinational technology and consulting company founded in 1911. The firm is headquartered in New York, serves clients in 170 countries.
IBM is considered one of the world’s largest employers, outsourcing 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 care for its IT functions, including network management and IT infrastructures.
IBM utilizes outsourcing for its main office and 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 (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.
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, Amex’s in-house team can’t handle all the back-office operations.
The US company outsources most of its customer support, IT support, and collections services to its office in the Philippines.
The Coca-Cola Company
The Coca-Cola Company is a 128-year-old all-American multinational beverage corporation headquartered in Georgia, United States. Incorporated in Delaware, the company focuses 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 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 has headquarters 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 and has evolved into offering assistance in several functions within the business world.
Here are the most common services you can outsource to a third-party 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.
You must spend a significant amount on recruiting and hiring employees and providing the right tools they need.
That is why customer support is among the most outsourced services in the world. Whether it be call centers, email support, or even social media management, outsourcing agencies can help you find the right way to assist clients worldwide.
Marketing
Marketing a business’ products and services can be tricky. You’ll need to arm yourself 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.
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 with various tech experiences at lower costs.
Human resources
HRs handle a lot of management work for the company. They take care 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 and checking employees’ references.
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.
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.
Recent technology and policy advancements made it easier for businesses of all sizes to outsource their functions. Today, companies realize 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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