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Outsourcing: A Growth Catalyst for Companies

By January 20, 2023April 16th, 2024No Comments
Outsourcing Growth Costs

Outsourcing has boomed from just back office support services to becoming a part of the core strategy in most companies. It enables an organization to achieve business objectives, create and enhance add value. It also helps companies tap into a wide resource base and mitigate risk.

US companies reduce costs significantly by offshoring projects, and thus free up resources. These can be utilized to innovate, design and develop new products and ventures. As a result, companies can create new, higher-paying jobs and stimulate the economy.

It is no surprise that 66% of businesses in the United States outsource at least one department. Also, 59% of businesses cite cost as the biggest reason for outsourcing. Outsourcing companies have increased their value and moved to being a part of core strategy building.

American businesses are mostly built on outsourcing. More than two-thirds of big companies in the United States use outsourcing to some degree. Primary reasons for outsourcing included tight budgets and rising energy costs. Let’s explore how outsourcing evolved from cost-cutting to a vital strategy for growth stage firms.

Identifying What to Outsource.

Most companies start analyzing what to outsource through repetitive tasks.  These can fall under various heads – Data Entry, Accounts Payables, Receivables, and many others.

Reported increases in revenue and budget across industries indicate strong growth in the use of third parties over the past two years. While enabling functions and IT departments continue to outsource most of their services through differentiated third-party delivery models, core business operations (e.g., product development, sales, etc.) remain internally managed.

We all know about Traditional Outsourcing, Managed Services, and Operate Services. But, outsourcing solutions are not limited to them anymore. BPO providers now supply knowledge, capability, and capacity. They do this by providing on-demand access to hard-to-source talent and expertise on technology. One of the best examples is ARDEM. ARDEM is one of the leading outsourcing companies in USA. We help companies manage their core competencies by ensuring the downstream and upstream processes are maintained effortlessly.  

This shift towards BPO or business process outsourcing reflects a goal to work with service providers to focus on core functions and increase overall business value.

Examples of Companies Built on Outsourcing

  1. IT – There are many companies in this industry which thrive on business process outsourcing. U.S. stock market’s favorite acronym of F.A.A.N.G  (Facebook/Meta, Apple, Amazon, Netflix, and Google/Alphabet – would not have been possible without outsourcing. From core programming functions to IT management and maintenance -these companies have been the biggest beneficiaries of talented outsourcing. Their global influence has been the result of globalization in the truest form.  
  2. Finance/Accounting – Almost all large companies in the US outsource their finance and accounting departments to either other US based outsourcing companies or offshore companies. 
  3. Manufacturing/ Consumers – From WalMart to Nike to all electronic giants to even defence companies like Boeing outsource several functions. 

Hundreds of major American corporations are shipping thousands of jobs overseas, according to an analysis of Trade Adjustment Assistance (TAA) filings made to the U.S.


The evolution of outsourcing has empowered organizations to focus on core competencies. It has helped them innovate and expand their offerings while effectively managing costs and mitigating risks. There’s been a significant percentage of businesses in the United States leveraging outsourcing to some extent. Clutch surveyed 1,003 small businesses in the U.S. in 2022 and 500 in 2021 to learn about how small businesses handle outsourcing tasks. The survey results found that companies plan to outsource to realize BPO benefits. These include improved efficiency, business growth, and the chance to work with experts.

Outsourcing has enabled IT giants like Facebook/Meta, Apple, Amazon, Netflix, and Google/Alphabet to thrive in the global marketplace. Likewise, manufacturing behemoths like Nike and Boeing have also leveraged outsourcing to their advantage. They are using BPO for efficient business growth.  

It’s evident that outsourcing has become a cornerstone of modern business operations. Partnering with a reputed outsourcing company like ARDEM can further enhance a company’s ability to streamline operations. We can help you access specialized expertise and drive greater efficiency. Join us and free up valuable resources to focus on strategic initiatives! Foster growth and maintain a competitive edge in today’s rapid world! Reach out to ARDEM now!