Outsourcing was first discovered as a business strategy in the late 1980s and became a key component of business development in the 1990s. Outsourcing means contracting out business processes to third-party service providers usually to avoid certain costs such as labor and taxes. Outsourcing of business activities enables companies to improve operational efficiency and enhance their business activities, thereby reducing operating costs. Thus, the cost-cutting is a key factor that is anticipated to drive the growth of the company. Also, several companies consider outsourcing as a solution to meet their back-office requirements due to benefits such as increased productivity and workload management.
The largest players in the business process outsourcing (BPO) service help fill gaps in different industries such as retail and e-commerce, healthcare, pharmaceuticals, business services, telecom, utility, and energy, banking, and asset management companies. The continuous growth in the outsourcing sector resulted in the emergence of subspecialties including IT-enabled services, knowledge process outsourcing, legal or professional outsourcing, research process, and travel. The IT outsourcing sector is responsible for the biggest market share of 44.6% in 2018, growing at a 9.4% compound annual growth rate (CAGR) during the forecast period 2019 to 2024. Read on the 15 largest IT service companies in the world in our separate article for the best companies to invest in.
In 2019, India was the leading outsource country according to Tholons Top 50 Digital Nations and A. T. Kearney's Global Services Location Index, with employees mostly specialized in IT and software development. On the other hand, North America accounted for the largest share of the global outsourcing market due to emerging IT and telecommunication companies in the US. Also in 2019, the global outsourcing sector was valued at $92.5 billion and it is projected to reach $405.6 billion by 2027.
biggest outsourcing companies in the world
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During the campaign period, now President Joe Biden released his administration's plans to solidify the outsourcing policies in the US. This includes "Biden Offshoring Tax Penalty" which states that:
Biden will establish a 28% corporate tax rate, plus a 10% Offshoring Penalty surtax, on profits of any production by a United States company overseas for sales back to the United States. Companies will pay a 30.8% tax rate on any such profits.
Moreover, Biden promises to close the Trump Offshoring Loopholes by:
End the Trump Loophole of allowing U.S companies to pay ZERO taxes on the first 10% of their profits when they locate manufacturing and service jobs in foreign nations.
While the traditional outsourcing industry was greatly impacted by COVID-19, the pandemic had delivered surprisingly positive results (pun intended, in a good way)! During the pandemic, the outsourcing industry got busier. While lockdowns shut down cities around the world, the business had to go on, and outsourced professionals were more on-demand than ever before. For example, when the Philippines entered a very long and strict lockdown in mid-March, BPO employees kept their jobs and were able to continue working remotely. Outsourcing and remote employment are perfect for building safer workplaces, and many companies are now considering outsourcing to make their offices mostly remote.
To give you the most accurate ranking, we reviewed each company's financial statement including revenue, market cap, assets, and the number of employees. In this article, you will see the largest outsourcing companies ranked by their revenue from lowest to highest. And with that, let's look at the biggest outsourcing companies in the world starting at number 15:
Genpact is a global outsourcing company providing finance and accounting services, core business services, purchasing and supply chain services, and IT services. The company serves the banking, wealth management, insurance, consumer goods, retail, life sciences, healthcare and technology, manufacturing, and service industries.
14. Teleperformance
Revenue: $6 billion
Market cap: $13.2 billion
Assets: $7.7 billion
Total number of employees: 331,065
Headquarters: Paris, France
Teleperformance ranks 14th in our list of the biggest outsourcing companies in the world. Teleperformance offers services through customer experience, back-office, and digital transformation. The company provides customer acquisition, customer support, technical support, debt collection, social media, content moderation, HR services, market research, and other solutions.
Wipro Limited, also known as Western India Products Limited, is an Indian IT outsourcing company founded by Mohamed Hashem Premji in 1945. It primarily offers, retail, transport, manufacturing, healthcare, energy and utilities, technology, telecommunications, and media services. The company also provides enterprise applications, infrastructure management, testing, product engineering, engineering, and product support services.
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12. HCL Technologies
Revenue: $9.7 billion
Market cap: $19.6 billion
Assets: $10.6 billion
Total number of employees: 137,000
Headquarters: Noida, India
HCL Technologies uses high-tech innovations from the Internet of Things services, cloud automation, cybersecurity, infrastructure management, to engineering services to solve business problems for clients. The company is primarily engaged in the development of a range of software services, outsourcing of business processes, and infrastructure services.
11 Highest Paying Countries for Information Technology Professionals
CGI ranks 11th in our list of the biggest outsourcing companies in the world. CGI is a global IT consulting firm focused primarily on providing business solutions to various industries such as financial services, healthcare and government, telecommunications and utilities, manufacturing, and retail and distribution. Its clients include 45 of the top 50 banks in the Americas and Europe, 7 of the top 10 global telecommunications carriers, and major global aerospace, metals and mining, chemicals, and oil and gas companies.
11 Highest Paying Countries for Information Technology Professionals
Telus is a Canadian outsourcing company specializing in telecommunications services and products primarily for wireless and wireless voice and data services. It is involved in the provision of communications products and services, including data, Internet protocol, voice, entertainment, and video. In addition to outsourcing, Telus offers hosting, managed IT and cloud-based services, certain healthcare solutions as well as voice and other telecommunications services and equipment sales.
INFY ranks 9th in our list of the biggest outsourcing companies in the world. Based in Bangalore, the Infosys services firm leverages its offshore outsourcing model to generate 60% of its revenue from North America. The company offers traditional IT services including consulting, managed services and cloud infrastructure services, and outsourcing of business processes as a service.
8. NTT Data
Revenue: $15 billion
Market cap: $20.27 billion
Total number of employees: 123,884
Headquarters: Tokyo, Japan
One of the biggest outsourcing companies in the world is Tokyo-based NTT DATA specializing in business consulting, design, implementation, and support for operation and maintenance. NTT DATA provides a wide range of IT services and solutions, including consulting, system integration, and IT outsourcing, to major financial, public administration, and business sectors.
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7. Capgemini
Revenue: $15.8 billion
Market cap: $15.9 billion
Assets: $20.4 billion
Total number of employees: 219,314
Headquarters: Paris, France
With over 200,000 employees spread across 44 countries, Capgemini is one of the world's leading providers of technology, consulting, and outsourcing services. Capgemini's primary business revolved around its software and services tailored to help clients identify issues and provide end-to-end solutions to them.
Cognizant is an international, US-based company known for its innovative consulting and IT solutions. The company also provides digital engineering and security services. The company has accommodated well-known global organizations such as Wells Fargo and JPMorgan Chase. Cognizant is also well known for its IoT, AI, and cloud solutions.
