They focus on their core strength and core business. Rather than spending their valuable resources on supporting activities, they outsource them. MNCs have the option and resources to hire a full-time employee but, many successful businesses outsource their work.

The benefits?

There are many benefits such as higher productivity, no training cost, more specialized and skilled talent, no office cost.

Even the MNCs believe that not every business activity can be performed in-house, few processes and activities should be outsourced for better results.

Few successful MNCs are outsourcing for decades:-

  1. Google

Google, the adjective to the internet. Such a large corporation can also understand that even with its huge capacity it cannot do everything in-house. They outsource email support for AdWords.

Why they outsource:

For maximized budget utilization and solving the capacity problems.

  1. WhatsApp

WhatsApp has outsourced its developments to Russian developers for much less cost than they had to pay in the US.

Why they outsourced:

Leveraged the benefit of lower manpower costs in other countries and took advantage of global talent.

  1. Apple

Apple has been outsourcing its hardware and services from the US, Asia, and the Far East for decades. Apple outsources its supply chain management and manufacturing facilities to focus more on its core business and strength that is innovation.

Why they outsourced:

For a greater focus on their core business and reduced cost.

The key takeaway from these examples is that to grow on a global scale, the company needs to make cost-effective strategies. And the most important decision is to decide what activities should be in-house and what to outsource, keeping in mind the strength and weaknesses of the company. And no matter the size of the organization, outsourcing is key to growth and expansion.