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How Outsourcing Became the Miracle for Growth Stage Companies.

By January 20, 2023June 14th, 2023No 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, tap into a wide resource base and mitigate risk.

It is no surprise that 66% of businesses in the United States outsource at least one department and 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.  

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.

In addition to Traditional Outsourcing, Managed Services, and Operate Services, service providers now supply knowledge, capability, and capacity by providing on-demand access to hard-to-source talent and expertise on technology and transformation that keeps pace with the continuously evolving business environment. One of the best examples is ARDEM helping managing their core competencies by ensuring the downstream and upstream processes are maintained effortlessly. 

This shift towards business process outsourcing (BPO) with operational consequences signals the desire to deliver core capabilities in collaboration with service providers, aiming for elevated business value creation.

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 beneficiary 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.


These examples were just a tip of the iceberg and most of these companies are now in the Forbes500 list because of outsourcing. 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 in order to realize a host of benefits, including improved efficiency, business growth, and the chance to work with experts. 

From social media to IT to legal affairs, outsourcing will be a significant part of business models and small business success. It will not be surprising if these companies become the next entrants in the Forbes 500.

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at or call us at 908-359-2600.