15 Surprising Companies That Outsource Tech Support
The history of the outsourcing industry is instructive. It started out fairly well, cooled a bit around 2009, and picked up steam subsequently. Now, the industry is entering a new phase—one in which more and more businesses are reaping its benefits.
The numbers bear this out:
1. IDC expects the BPO marketplace to grow at a five year CAGR of $5.7% reaching $209.4 billion in 2017.
2. The U.S. market is expected to grow at a five year CAGR of 4.3%, reaching $97.5 billion in 2017.
That’s great news.
But some managers still think of contracting as a cost cutting measure only.
As history reveals, it’s a powerful strategic weapon than can give it you a distinct competitive advantage.
It can even help you transform your business altogether and some of the businesses that have used it as a strategic weapon may surprise you.
Many of the early adopters were Fortune 100 companies — as Rick L. Click and Thomas N. Duening point out in their book, Business Processing Outsourcing: The Competitive Advantage.
Companies like General Electric, American Express, AT&T, and British Petroleum, blazed the trail for others. These pioneers risked outsourcing non-core processes.
Sometimes their efforts paid off. Sometimes they didn’t. But the lessons they learned paved the way for others.
More important, they spotlighted outsourcing tech support as a legitimate business tool—a tool that can help you survive and thrive.
What Fuels Travel Industry Growth
One industry where expert vendor partners have really fuelled growth is the travel industry. The airline industry is fast changing. To deal with constant change, the airlines have formed relevant partnerships.
Airlines like British Airways, Virgin Blue, Virgin Atlantic, and Malaysia Airlines have all deepened ties with partners over the last decade or so.
These partners enabled the airlines to focus on innovation, core business-facing activities, and re-engineering themselves. Even now partners are providing companies with the agility to make strategic changes.
Take Travelocity for example. It’s operations so it can concentrate on its core business: finding hotels and airfares.
Technology Industry Reap BPO Benefits
Another marketplace that has reaped the benefits is the technology industry.
In fact, one of industry’s most respected tech companies recently made big news. IBM recently sold its worldwide customer care BPO services to SYNNEX for $505 million.
SYNNEX will fully integrate IBM’s services with that of Concentrix—a SYNNEX subsidiary. Concentrix will become an IBM strategic business partner providing IBM with global customer care services.
Two other technology companies that have used outsourcing strategically are Sandvik and Clearwire.
Clearwire contracted tech support activities to streamline operations. Sandvik contracted tech support to deliver transactional finance and accounting processes.
Other technology firms benefiting include LogiPen, AutoBlogged, VPN Tunnel, and Amosu—the world’s only luxury phone customization company.
It isn’t Just About Cutting Costs
It isn’t just about cutting costs or eliminating jobs. As businesses in the travel and tech industries have learned, it pays off in many ways.
It increases agility, boosts flexibility, and improves customer service. And it lets you focus on core competencies.
It’s a powerful tool that can help you deliver a knockout punch to competitors in 2014.
If you thought offshoring was just about reducing costs, think again.
Let us put our proven experience in providing tech support for small and medium size companies to work for you. Request a quote from our sales team.