Companies That Offshore
Offshore outsourcing is a potent option for companies that require access to specialized talent. It can also lower the cost of labor, boost revenue and increase competitiveness of companies.
Outsourcing companies must be aware of their risks. Moving design offshore along with manufacturing can deprive a firm of its engineering and design capabilities.
Telstra
Telstra has progressed a lot from its humble beginnings in the form of a small government-owned company. It is now a massive Telecommunications company that operates around the world. It is also the biggest provider of fixed line telephone service in Australia.
The company's success can be attributed to its innovative solutions and a strong investment strategy. In the midst of a shortage of resources in the early years, the company invested heavily into new technology, and recognized that the telecommunications industry was a great growth area. This was a smart move as it enabled the company to connect Australian city both domestically and internationally. The company was also a pioneer in the use of mobile phones, which enabled people to remain connected to their loved family members wherever they were.
In the 90s, the company was faced with major challenges, such as deregulation and competition from competitors. However, it was not content to remain in a rut and devised aggressive plans to respond to these changes. For example, it invested heavily in infrastructure and spent $200 billion to enhance its services. It also innovated by the introduction of BigPond which is a high-speed internet service for users.
It also reduced its workforce and outsourced some of its functions, which resulted in cost savings. It also implemented an organization structure that separated roles into functional groups rather than the traditional hierarchical structure. This gave the top managers to have more control over their area of expertise.
Recently, the company announced that it would bring its call centers back to Australia, and that by 2021, all of its small and consumer calls will be answered in Australia. This is a significant step forward for Telstra, and it is likely to benefit its customers. Telstra will continue to run offshore call centers for its more international customers.
GE
Thomas Edison founded General Electric in 1892. It quickly became one of America's most profitable companies. In the 1980s GE bought several large companies including Employer's Reinsurance and Kidder Peabody. The revenues of GE grew from $5 billion to more than $70 billion during this period. Despite these successes, analysts have questioned if the company's success can last.
At present, GE is focusing on industrial technology and services including renewable energy, medical and power. It has also invested into additive machines, 3D printers which can be used to make parts and products. Additionally, GE's financial arm provides commercial credit and leasing.
The GE washer-dryer is the top-selling product of the company. It has been used in American homes for over 80 years. It was the first appliance that could automatically wash and dry clothes, making it an innovative invention for families. GE manufactures not just appliances, but also medical devices, aircraft engines, and power generators. GE plans to expand its digital business in the future. This includes commercial software from Wurldtech and cybersecurity technologies.
GE also offshoring its most important business processes in India where wages are cheaper than in the US. The company that is its captive offshoring subsidiary, GE Capital International Services (GECIS) employed 12,000 workers in 2004. In 2005, GE sold its stake in GECIS and made it a standalone BPO called Genpact. Genpact employs 20,000 people and GE is still a major customer. The company recently diversified by purchasing the maker of the Osprey Drone. GE has also made significant investments in the wind sector, through a contract to supply 87 Haliade-14 MW wind turbines from Dogger Bank C.
IBM
International Business Machines (IBM) is one of the world's largest technology companies, headquartered in Armonk, New York. The company offers hardware, software, and services for the IT industry. In addition, it offers financing to assist its customers purchase of IT systems and software. Additionally, it runs research laboratories around the world. The company has a history of research that has been innovative dating to the 1880s when Julius E. Pitrat patented the computing scale, Alexander Dey invented the dial recorder and Herman Hollerith created a tabulating machine.
The corporate vision statement of the company is a reflection of its commitment to leadership in the marketplace and industry for information technology. It declares that the company will offer high-quality services by creating business models that combine technology expertise and industry knowledge. It also focuses on customer success and value creation, which is important factor in its long-term success.
In recent years, IBM expanded its services business. It has also changed its name to a cloud computing platform and a cognitive solutions company. IBM's software portfolio includes analytics-related products such as Cognos, SPSS and SPSS. It also provides IT infrastructure software, such as the IBM WebSphere application server and MQ messaging middleware. It also offers security and mobile applications, including the IBM Verse business email offering and the IBM QRadar security intelligence platform.
In recent years, the company's hardware sales have decreased due to the shift in corporate IT expenditures from on-premises facilities to centralized providers like Amazon Web Services. IBM has been focusing on its business consulting and service businesses and has made several acquisitions to expand their reach in these areas. In addition IBM has also invested heavily in cloud computing, and has a vast global footprint.
Accenture
Accenture is among the world's leading management consulting outsourcing, technology services and outsourcing companies. The company has many strengths that give them an competitive advantage, including a deep knowledge and expertise in their industry, ingenuous technology solutions and strong partnerships with leading vendors.
The company's business processes include procurement, marketing supply chain, learning, human resources, and finance. Accenture is also present in more than 120 different countries. Accenture also offers a range of specializations in addition to its standard offerings. For example, it offers SAP S/4HANA development and speed-tracking customer journeys to digital businesses. It also offers IT and security services.
In the past, companies have outsourced certain production processes to reduce costs and increase their competitiveness. For instance, the apparel industry has outsourced a lot of its production functions to Asian countries. But recently, more and more companies are focusing on the provision of services instead of product manufacturing. This shift has resulted in an increasing demand for professionals with experience of digital and IT services. The best part is that these skills can be transferred across different industries.
Accenture has many clients and is expanding in key markets. Its client base includes 91 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. Accenture also collaborates with companies like Apple, Google, and Oracle to develop new technologies. For instance, Accenture has partnered with SAP to develop an intelligent platform that helps upstream oil and gas companies cut down on the complexity of their operations by using market standards. This solution is being tested by a consortium of major oil and gas firms, including BP, Chevron, ConocoPhillips and Equinor. This partnership demonstrates how companies are stepping away from traditional outsourcing to concentrate on innovation and services.
Microsoft
Microsoft is one of the most popular manufacturers of operating systems and applications for personal computers. Microsoft's most popular products include its Windows software line, Office suite and Internet Explorer browser. The company has been accused of monopoly, anti-competitive practices and the use of monopoly. In the 1990s it set an elaborate network of offshore entities in order to transfer intellectual property and to reduce tax payments.
When a client purchases Office in Seattle Microsoft's headquarters aren't in Redmond. Instead the money travels on an extended journey. Instead, the money starts an extended journey, first through a sales subsidiary located in Nevada which isn't taxed on corporate income. Then, it crosses the Atlantic to an Bermudan company and is finally taxed at Bermuda's zero-percent rate.
The money is then transferred to a Puerto Rican firm that pays for the research and then gives some of the proceeds to an Irish company. offshore company consultant has utilized structures similar to this in other countries like Britain and Germany. The software giant has saved billions of dollars in taxes by using this arrangement.
The software giant is now facing a legal challenge from Congress to change its offshore strategy. The Senate Permanent Subcommittee on Investigations said that the company, together with other technology companies, utilize offshore units and tax loopholes to avoid payment of taxes. The panel is investigating allegations of tax evasion by tech firms which include Google owner Alphabet and Apple which have transferred billions of dollars in profits to tax-free jurisdictions.
The partnership between SSE Renewables and Avanade is part of a larger initiative to improve the environmental impact of wind farms in the Netherlands. The partnership will develop digital instruments that can better monitor the impact of wind farms on the local ecosystem. The tools will be tested in an aquarium and are expected to enhance the identification of wildlife, abundance monitoring, and analysis of distribution.