Offshoring: Why Big Brands Are Doing It
It’s no secret that large companies are utilising offshoring and outsourcing services to maintain their business operations. Aside from reducing labour costs, you also have a competitive advantage over your peers – or at the very least, a levelled out playing field against larger competitors. Today’s technology has also shown potential around transparency in monitoring offshore and outsourced workers. With the COVID-19 global lockdown demonstrating the possibility and capability to manage your workers from a remote location and keep business operations running despite the situation, we can expect a higher demand on offshoring and outsourcing services in the following years.
Procter & Gamble
Procter & Gamble is one of the biggest producer and seller of consumer goods, including health care, cosmetics, cleaning and food and beverage products. To keep up with the rapidly growing demands, P&G outsourced their IT apps development, IT support, and data centre operations to Hewlett-Packard. By 2008, they outsourced their VoIP, internet services, remote access, audio and video-conferencing and security services to another company called BT Group to keep the heavy lifting out of P&G’s corner concerning IP communications.
“Just like we buy power and just care that the light goes on, we just want to plug something into a jack in the wall and know that the power is there to give us dial tones or computer connections when and where we need them,” said Alistair Wilson, P&G’s associate director of global business services responsible for networks and telecom.
“The keyword here is unification,” Wilson said. “When we outsourced to HP, it was here is the LAN, here is the WAN, here are the cell phones. With a converged architecture, these start to become just points on the same network. The future is here today, it’s just unevenly distributed. “
JPMorgan Chase & Co.
JPMorgan Chase & Co is a global financial holding company engaged in investment banking and financial services. It operates on four segments: Consumer & Community Banking, Corporate & Investment Banking, Commercial Banking and Asset Management. In 1961, JP Morgan Chase & Co established operations in the Philippines. Today, they have over 15,000 employees in the Philippines focused on corporate and investment banking, commercial banking, equity, sales and trading, treasury and expanding global service centres.
Slack has transformed workplace communication and collaboration since its initial release in 2013. During the COVID-19 pandemic, the global lockdown that forced businesses to transfer their everyday functions online relied on Slack and other communication software tools to continue their operations. However, did you know that Slack outsourced another company to work on their company branding, website and application? In 2019, Slack landed a $20 billion valuation. It goes to show that you don’t always have to do everything in-house. Sometimes, utilising offshore talents with years of experience can help your business expedite growth without compromising cost.
Indeed, offshoring and outsourcing industries have come a long way. Technological advancements have redefined and solved the initial doubts on outsourcing and offshoring. Today, transparency is more feasible than ever with newly available software implementations. Outsourcing companies have also focused on high standards around client experience and relationships to ensure maximum customer satisfaction. Meanwhile, companies are becoming more conscious about the quality of the workplace around offshore and outsource staff. It’s not just about reducing cost now with offshoring and outsourcing; it’s about providing the best possible solution to your business so that you can focus on what matters to you the most. To build your capability and resilience in your organisation, head on over to our contact section or book a consultation today!