Looking for the best outsourcing companies in 2020?
Outsourcing has gained tremendous popularity to become an essential part of most growing businesses today.
However, choosing the right outsourcing services for your needs can be confusing at first!
To help you out, this article will cover the biggest outsourcing companies in the world. We’ll also cover the services they provide and how your business can benefit from them.
This article contains:
(Click on a link below to jump to a specific section)
- What is outsourcing?
- Benefits of outsourcing work
- The best outsourcing companies in the world
- Choosing between outsourcing companies
Let’s get started.
What Is Outsourcing?
Outsourcing is the process where a business delegates certain non-core business processes and activities to a third-party. The third-party can be anyone from dedicated outsourcing companies to individual freelancers.
Does outsourcing always have to be off-shore?
While you can outsource to companies within your country (onshore), most companies prefer to outsource in foreign countries.
Because they usually have lower salaries – which helps you save more money!
What work can you outsource?
Ideally, you should only outsource non-core work.
What is non-core work?
Non-core work is any activity that your business doesn’t necessarily specialize in.
For example, social media marketing is not a core business activity for a company focused on front-end mobile application development.
Sure, it’s important – but it’s not what the company focuses on.
As you outsource these non-core activities, your in-house employees will have more time and resources to spend on the activities that you actually specialize in.
Here’s a list of some common tasks that you can outsource:
- Administrative work
- Marketing activities
- HR activities
- Manufacturing and sourcing
- Customer service operations
- Mobile app development for iOS and Android platforms.
- Web development services using languages like PHP.
Benefits Of Outsourcing Work
There are tons of benefits to outsourcing your non-core tasks.
Here’s a closer look at them:
A. Reduced Costs
One of the biggest reasons why companies outsource work is to reduce costs.
When you hire an outsourced team, you don’t have to invest in training and setup costs.
These outsourced teams usually consist of skilled professionals with the right equipment to expertly handle your work from the get-go.
B. It’s Easy To Scale Up
When your business grows, there are tons of additional costs you’ll have to take care of.
These can range from:
- Leasing larger offices
- Hiring more employees
- Investing in more equipment
- And so on!
When you outsource, you can bypass a lot of these additional costs for the time being as most outsourcing companies handle all of this themselves.
This way, you can continue growing without worrying about the associated costs holding you back initially.
C. Free Up Internal Resources For Core Activities
By outsourcing repetitive and time-consuming work, your employees can dedicate their time and energy to higher-order tasks like strategizing and planning.
Think about it.
Would you rather have your in-house team spend hours on administrative tasks, or focus on building better client strategies and increasing team collaboration?
Outsourcing allows you to make the most of your employees to ensure that you’re getting the best use out of their capabilities.
D. Keep Your Businesses Running 24/7
Keeping your business running around the clock is going to cost a lot of money, right?
To ensure your business that runs 24 hours a day, you’ll probably have to cover the wages of 3 shifts of employees!
So how does outsourcing help you?
Outsourcing can help you easily keep your business running around the clock at a fraction of the cost.
If you’re based in the US, and you outsource to a country like India – your BPO vendor can keep things running smoothly even when your onsite employees have clocked out and gone home.
Additionally, as your outsourced team is based in a country with lower salaries, you’ll save tons of money!
This can help you maintain 24×7 service channels to cater to clients and customers round the clock.
The Best Outsourcing Companies In The World
Now that you know how outsourcing can take your business to the next level, how do you choose the right outsourcing company?
This can be a problem as there are thousands of outsourcing companies across the world in 2020!
To help you get started, let’s take a look at some of the biggest outsourcing companies and the specific services that they specialize in:
Wipro is an India-based outsourcing company that provides IT, consulting as well as business process outsourcing services. They work with clients across several industries, from banking and communication to insurance and oil.
Major clients: Airbus, Telenor, Swiss Pharmaceutical
- Artificial intelligence
- Cloud and infrastructure
- Customer service management
- Supply chain planning
- Digital marketing
HCL Technologies Limited is a subsidiary of HCL Enterprises that specializes in consulting and information technology services. They work with multiple industries such as healthcare, civil amenities and life sciences.
- Content production
- Sourcing and procurement
- Order management
- Cloud infrastructure and automation
Based in New York, IBM is an IT company with operations in over 170 countries in the world. They offer IT outsourcing and multiple high-level BPO services across several industries.
IBM has recently been focusing on fields like big data analytics, IoT and machine learning.
Major clients: American Airlines, Volkswagen, Paypal and Amazon
- Talent acquisition
- Financial and consulting services
- Procurement strategy and consulting
- Staff augmentation
- Financial planning and analysis
Accenture is an international professional services company headquartered in Dublin, Ireland. It has partnered with the likes of Google, Apple and Microsoft in the past. As part of the Fortune Global 500, Accenture’s clients include three-fourth of the Fortune 500 companies worldwide!
Accenture has been a continuous participant in the Global Outsourcing 100 with over 10 years of experience in the field.
Major clients: World Bank, American Express, 91 companies of the Fortune Global 100
- Healthcare utilization management
- Employee and HR services
- E-commerce set-up and sales
- Record to report
- Support and procurement operations
Infosys Limited is an Indian company that provides information technology, business consulting as well as other BPO services.
Major clients: Cisco, PepsiCo, UCAS
- Contract analysis and management
- Customer care
- Payroll outsourcing
- Supplier relationship management
Capgemini is a consulting, technology and outsourcing service provider with headquarters in Paris, France. They focus on application development and digital product development along with providing a host of other technology solutions.
Major clients: Armstrong, Bluescope Steel
- Digital manufacturing
- Customer experience
- Customer operations management
- Finance and accounting
Sciencesoft is an IT consulting services and custom software development provider. They are based in the USA and cater to mid-sized and large businesses internationally.
Sciencesoft is known for its web application and mobile development services.
Major Clients: IBM, Walmart, eBay, Salesforce and Nestle.
- IT help desk outsourcing
- Software development
- IT strategy
- Crisis management
- Quality assurance
Based in New Jersey, USA, Cognizant offers digital solutions involving IT, business operations and consulting.
Cognizant is more than just a software development company since web design and software development services are a small part of their business model. They also focus on more advanced services like AI and digital engineering.
Major clients: ING, JP Morgan Chase and Wells Fargo.
- Cloud enablement
- Digital strategy
- Artificial intelligence
- Wealth and asset risk assessment
- Contact center support
TCS, or Tata Consultancy Services, is the biggest Indian IT service and consulting corporation. A subsidiary of the Tata group, TCS operates in 46 countries across the world.
Major clients: Citi, B&O, Qantas and Thomas Reuters.
- Supply chain as a service
- Product lifecycle management
- Blockchain project management
- Cloud infrastructure
- Market Access services
ADP, or Automatic Data Processing, is an HR management service and software solutions provider. Headquartered in New Jersey, USA, ADP operates in over 130 countries in the world.
Major clients: Cognizant, Dell, HP and Hershey.
- Payroll data entry and processing
- Product navigation support
- Compliance assistance
- Talent acquisition
- Tax services
Choosing Between Outsourcing Companies
With so many options, picking the right outsourcing company for your needs can be very tricky.
To make this process easier, here’s a step-by-step guide to choosing your BPO service provider:
1. List Your Criteria Based On Your Business Requirements
To begin with, chart out your requirements from an outsourcing provider.
Based on these needs, select the criteria to use while evaluating each BPO company.
These criteria may include:
- Specialization/Area of expertise: What industries does the outsourcing company specialize in?
- Services offered: What outsourcing services do they offer?
- Company size: How large is the company? How many employees do they have?
- Major clients: Who are their biggest clients?
- Pricing: What do their services cost?
Remember to settle on a selection of criteria that is relevant to your business. For example, if pricing is something that’s extremely important to you, ensure that that’s your chief selection criteria in your evaluation process.
2. Narrow-Down Your Selection
Based on the criteria used in the previous step, shortlist the outsourcing companies that best match your requirements.
Try to narrow your selection down to three to five service providers.
Why three to five?
This gives you enough room to further narrow down your options while also eliminating a majority of prospects from your list.
3. Set Up a Test Project
Assign a test project to your shortlisted outsourcing companies. Think of this as a pilot project that can help you evaluate their performance and work.
It’s always a good idea to ensure that your test project closely resembles a project you’d give them if you hire them. This way, you get a better idea of how they’ll be able to cope with the work you’d actually give them if you do hire them.
4. Assess Their Performance
Rank your shortlisted companies based on their performance in the test project.
Use performance benchmarks and metrics to help you out with this.
Some of these could include:
- Time taken to complete the project
- Quality of work/output
- Ease of communication
- Adaptability to changes and updates
When creating a list of evaluation criteria, remember to prioritize what matters most to your business. For example, if timeliness is something your company values, then “time taken to complete the project” should be one of the most important evaluation criteria on your list.
5. Periodically Assess Their Performance and Productivity
A lot of companies might put their best people on a pilot project to get your business, but that doesn’t necessarily mean that they will continue to deliver the standards you had initially envisioned.
That’s why it’s important to revisit the different performance metrics every quarter to ensure that quality levels don’t fall. This is especially important when you go for an FTE (Full time employee) model where your outsourcing vendor gives you a dedicated team.
But, how do you track your team’s productivity when they don’t work in the same office as you, and probably work in a different continent altogether?
Luckily, with a remote productivity tool like Time Doctor, managing outsourced teams is a piece of cake!
What’s Time Doctor?
Time Doctor is a powerful remote productivity platform used by SMBs as well as major companies like Apple and PwC.
With Time Doctor’s powerful features, you can:
- Track the time your outsourced team takes for each task.
- Ensure outsourcing companies are only billing you for work done on your projects
- Keep distractions at bay to help your outsourced team focus.
- Track the websites and apps your outsourced team uses to ensure company policies aren’t violated.
- Generate productivity reports to make team management easier.
Outsourcing companies play a significant role in virtually every industry today.
You can go through this list to find the outsourcing companies that fit your company’s needs and then go through the process we mentioned to narrow it down to the perfect fit.
Once you do, you’ll have no trouble benefiting from the numerous advantages that outsourcing provides and will be able to take your business to the next level.