Companies That Offshore
Offshore outsourcing is a potent option for companies that require access to talent in a niche. It can also lower costs for labor, boost revenues and increase competitiveness of companies.
Companies that outsource must be aware of their risks. Designing and manufacturing could be moved offshore in tandem and can deprive the company of its engineering and designing capabilities.
Telstra
Telstra has grown considerably from its humble beginnings as a small, government-owned business. It is now a huge Telecommunications company that operates around the globe. It is also Australia's biggest fixed-line telephony company.
The company's success is due to its solid investment strategy and innovative solutions. In the midst of a shortage of resources in the early years The company made a significant investment into new technology, and realized that the telecommunications sector had a huge growth potential. This was an excellent decision, as it allowed the company to connect Australian cities across the country and internationally. The company also pioneered the mobile phone, which enabled people to stay in touch with their loved ones no matter where they were.
In the 1990s, the company had to face many challenges, such as deregulation and the competition of rival companies. It refused to sit back and devised aggressive strategies to adapt to these changes. For instance, it sunk heavily in infrastructure and spent $200 billion to enhance its services. It also came up with a new idea by the introduction of BigPond which is a high-speed internet service for customers.
It also cut its staff and outsourced some tasks, which resulted in savings. Additionally, it introduced an organizational structure that divided roles into functional groups instead of the traditional hierarchy. This gave superior managers to exercise greater control over their areas of expertise.
Telstra recently announced that it would bring its call centers back to Australia and that, by 2021 its small business and consumer calls will be answered in Australia. Telstra has taken a significant step forward, and this will have a positive impact on its customers. The company will still operate offshore call centers for its larger international customers.
GE
General Electric (GE) was established by Thomas Edison in 1892 and quickly became one of the most successful American companies. In the 1980s, GE acquired several large companies including Employer's Reinsurance and Kidder Peabody. In this period the company's revenue grew from $5 billion to $70 billion. Despite these gains analysts have been unsure if GE's success is sustainable.
Presently, GE is focusing on industrial technology and services including medical, renewable energy and power. It has also invested in additive machines, or 3-D printers that can be used to create new products and parts. Additionally, GE's financial arm provides commercial credit and leasing.
The most well-known product of the company is the GE washer and dryer that has been used in American homes for more than 80 years. It was the first machine that could automatically wash and dry clothes. It was a revolutionary invention in households. In addition to its appliances, GE also manufactures aircraft engines, medical equipment, and power turbines. GE plans to expand its digital business in the coming years. This includes commercial software from Wurldtech and cybersecurity technologies.
GE also offshores its major business processes and its major business processes to India in a country where wages are cheaper than in the US. In 2004 GE Capital International Services, its captive offshoring firm employed 12,000 people. In 2005, GE spun off its stake in GECIS to create Genpact, a BPO company called Genpact. GE continues to be a big client of Genpact, which now employs 20,000 people. The company recently diversified its operations by purchasing the maker of the Osprey Drone. GE is also investing heavily in the wind sector, through a deal to supply the Haliade-X 14MW wind turbines to Dogger Bank C.
IBM
International Business Machines is one of the biggest technology companies around the globe, with its headquarters in Armonk, New York. The company provides hardware software, as well as services to the IT industry. It also offers financing to help its clients purchase IT systems and software. It also operates research labs throughout the world. The company has a long history of groundbreaking research that dates back 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 company's corporate vision statement reflects its commitment to leadership in the field of information technology and market. offshore consulting companies of the company states that it will provide high-value service by combining technology expertise with business model innovation. It also focuses on customer satisfaction and value creation, which is key to its long-term success.
In recent years, IBM has expanded its services business and recast itself as an cognitive solutions and cloud computing platform company. IBM's software portfolio includes analytics offerings including Cognos and SPSS. It also provides IT infrastructure software, including the IBM WebSphere application server and MQ messaging middleware. It also offers mobile software and security products, like the IBM Verse business-email offering and the IBM QRadar platform for security intelligence.
The hardware division of IBM has been in decline in recent years due to the shift in corporate IT spending from on-premise facilities to central companies like Amazon Web Services. IBM has been focusing on its business consulting and service business and has made several acquisitions to increase their reach in these areas. Additionally, the company has invested heavily in cloud computing and has a large global presence.
Accenture
Accenture is among the most renowned management consulting, technology services and outsourcing companies. Accenture has a variety of strengths that give it a competitive advantage with regard to extensive industry expertise and knowledge and innovative technology solutions, strong partnerships with leading technology vendors and a global reach and scale.
The company's business processes encompass marketing, procurement and supply chain, as well as learning and human resources, as well as finance. It is also present in more than 120 different countries. Accenture also offers a range of specific services in addition to its core offerings. Accenture, for example, provides SAP S/4HANA and rapid tracking of customer journeys within digital businesses. It also provides security and IT consultancy services.
Historically, companies have outsourced certain production processes to reduce costs and improve their competitiveness. For instance, the clothing industry has outsourced a large portion of its production processes to Asian countries. In recent times the majority of companies are focusing on services instead of production. This has led to the need for more experts with experience in digital and IT services. These skills are also transferable across industries.
Accenture has a wide range of clients and is expanding its presence in the most important markets. Accenture's client list includes 91 Fortune Global 100 companies and more than three quarters of the Fortune Global 500. The company also partners with companies like Apple, Google, and Oracle to create new technologies. Accenture for instance, has partnered up with SAP to create an intelligent platform solution that helps upstream oil companies reduce complexity through market standards. A consortium of oil companies, including BP and Equinor is currently testing the solution. This collaboration is a demonstration of how companies are moving away from traditional outsourcing and focusing on innovation and services.
Microsoft
Microsoft is among the most popular producers of operating systems and applications for personal computers. The most well-known of its products are the Windows line of software, the Office suite and Internet Explorer web browser. The company has been accused of anti-competitive practices, monopoly and unconstitutional behavior. In the 1990s it set an elaborate network of offshore companies in order to transfer intellectual property and cut down on tax payments.
When a client buys Office in Seattle Microsoft's headquarters don't reside in Redmond. Instead the money travels on an extensive journey. Instead, the money starts a long trek beginning with a sales subsidiary in Nevada, which doesn't tax corporate income. The money then crosses the Atlantic and is taxed by an Bermudan firm at a zero percent rate.
The money is then transferred to an Puerto Rican firm that pays for the research, and also gives a small portion to an Irish company. The company has utilized similar structures to avoid taxes in other countries, such as Britain and Germany. The software giant has saved billions of dollars in taxes through this arrangement.
The software giant is now facing a challenge from Congress to alter its offshore strategy. The Senate Permanent Subcommittee on Investigations has stated that the company together with other technology firms, employ offshore units and tax loopholes to avoid payment of taxes. The panel is investigating allegations of tax evasion by tech firms such as Google owner Alphabet and Apple, who have shifted billions in profits to low-tax jurisdictions.
The partnership between SSE Renewables and Avanade is part of a larger project to reduce the environmental impact of wind farms in the Netherlands. The collaboration will create digital tools that will better evaluate the impact of wind farms on the local ecosystem. The tools will be utilized in aquariums to improve the identification of wildlife and monitoring of abundance.