The global market for outsourcing services is estimated to reach $1.09 trillion in 2025 and is projected to grow even more in the coming years. This is not surprising. Today, you can find examples of outsourcing in the routine operations of various companies, from startups to large enterprises. But why is delegating business functions to external providers so popular?
According to Deloitte, 57% of companies use outsourcing for cost savings. Other reasons are access to specialized expertise, lack of employee skills, freeing in-house resources for core business processes, and enabling better scalability.
In this article, we’ll explore real-world outsourcing examples from top companies across various industries. From IT giants like Microsoft reimagining their tech support to nimble startups using specialized services, we’ll see how businesses use third-party vendors to solve complex business challenges and access global talent.
Key takeaways:
- Outsourcing enables companies to tap into a global talent pool, overcome local recruitment challenges, and quickly scale operations.
- Emerging technologies like cloud computing, data analytics, and cybersecurity drive significant growth in external service providers.
- Modern outsourcing is not a one-size-fits-all approach. Companies can choose from various IT outsourcing services, such as staff augmentation or recruitment process outsourcing, to find solutions that precisely match their unique business needs.
Information technology (IT)
Last year, the IT outsourcing services market generated more than $540 billion in revenue. It’s no wonder since IT is one of the most popular functions performed outside an organization. Outsourcing allows businesses to focus on core operations without worrying about managing an in-house tech department.
Software development, cloud computing, cybersecurity, data management and analytics are some of the most common outsourcing services within the tech niche.
Software development
Not all companies have the resources to build the software they need. Whether it’s an internal system or a customer-facing app, outsourcing can help. A software development company can take on some or all of the work to complete the project.
When looking for external providers, companies can choose between nearshore and offshore outsourcing. The first option is about working with a company in a nearby or neighboring country, while the second means partnering with a team in a distant country, often in a different time zone. Both approaches have pros and cons. In each case, outsourcing internationally allows companies to tap into global talent and reduce operational costs.
PKO Bank Polski: Outsourcing mobile app development
PKO Bank Polski, one of Poland’s largest banks, wanted to create a mobile app for corporate clients to improve access to banking services and attract new customers. Since it lacked the necessary mobile software development expertise in-house, the bank outsourced the project to Neontri. The collaboration led to the successful release of iPKO biznes, a comprehensive solution that provides users with secure, convenient, and efficient banking services. Since its launch, the app has been downloaded 100K+ times and achieved a 4.5 customer satisfaction rating.
Decathlon: Outsourcing the integration of a payment engine
Decathlon, a French sporting goods retailer, aimed to create an omnichannel payment solution. To achieve this, they needed to integrate a “pay and leave” functionality into the existing mobile app, allowing users to make purchases without using the checkout in stores. Decathlon chose Neontri as the software development partner due to tits extensive fintech expertise. The feature was delivered in 70% of the allocated project time, and during the first week after launching it processed one million euros in transactions.
Cloud computing
Cloud computing allows businesses to delegate IT services and infrastructure management to third-party providers. By leveraging this technology, organizations can dramatically reduce their operational costs, enhance scalability, and focus on core business strategies.
Cloud computing powers the “everything as a service” (XaaS) market. According to Statista, the contract value of the XaaS sector amounted to $13-14 billion quarterly in 2022-2024. It includes three core service models: software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS).
| Service model | Description | Examples |
| Infrastructure as a Service (IaaS) | Renting virtualized computing resources like servers, storage, and networks. | Amazon Web Services (AWS), Microsoft Azure |
| Platform as a Service (PaaS) | Purchasing a platform for developing, running, and managing applications | Google Cloud Platform (GCP) |
| Software as a Service (SaaS) | Accessing applications on a subscription or pay-as-you-go basis. | Salesforce, Google Workspace, Microsoft 365 |
Snap: Leveraging IaaS for a mobile app
Snap Inc., the company behind Snapchat, depends on AWS for IaaS services. With millions of daily users sharing snaps, videos, and messages, the platform needs flexible computing power and storage. AWS allows Snap to easily adjust resources as needed.
BBC: Using PaaS for digital services
BBC uses Google Cloud Run, a fully managed PaaS solution, to streamline the development and deployment of its website and digital services. Offering a serverless environment for containerized applications, this platform enables the media giant to simplify infrastructure management. This means BBC can efficiently handle traffic spikes while minimizing downtime.
Cybersecurity
According to Deloitte, 81% of businesses outsource their cybersecurity activities. That’s because security is a complex function that requires IT specialists to stay updated on threats and protection methods. Building an in-house team can be challenging and expensive. At the same time, outsourcing lets companies access specialized expertise while paying only for the services they need.
In 2024, the managed cybersecurity service market was estimated at about $25 billion in the US alone. This number reflects the growing recognition of professional security management across various industries.
NHS Digital: Outsourcing cybersecurity for a healthcare system
NHS Digital, a UK government organization responsible for providing IT and data systems for healthcare, has partnered with IBM to enhance its cybersecurity and resilience. Within this cooperation, IBM handles various specialized tasks, from security audits and asset monitoring to developing the Data Security Centre.
Data management and analytics
The company’s business growth potential relies heavily on its ability to manage data effectively and extract meaningful insights from it. This requires expertise in data science, machine learning (ML), and big data, which businesses often lack in-house.
To fill this gap, many companies outsource their data-related functions. In fact, about 75% of businesses collaborate with external providers for data management and analytics.
P&G and Unilever: Outsourcing data analytics
While many companies prefer to keep their data processes confidential due to security concerns, some details do occasionally surface. For example, Fractal Analytics, a global data analytics provider, has disclosed its collaboration with P&G and Unilever. The company helps these brands analyze customer data to develop targeted marketing and product strategies in highly competitive markets.
Business process outsourcing
Business process outsourcing (BPO) involves hiring third-party vendors to handle back-office administrative tasks like accounting and HR or front-office functions such as customer support, marketing, and sales. According to Statista, the global BPO market is expected to reach $0.41 trillion in revenue in 2025.
Why do companies outsource various business operations? There are several reasons:
- reduce costs
- improve operational efficiency
- grow faster
- optimize resource allocation.
Finance and accounting
Outsourcing routine and time-consuming finance and accounting tasks (such as bookkeeping, payroll, and accounts receivable) can benefit businesses of all sizes. Small and medium companies may not need a full-time finance team or may lack the resources to hire one. Meanwhile, large enterprises may face the challenge of managing complex operations across multiple regions while ensuring compliance with local tax laws and regulations. In both cases, outsourcing financial and accounting services is a smart and efficient solution.
OrderYOYO: Outsourcing accounting and payroll
OrderYOYO, a tech startup that helps restaurants manage online takeaway orders, was hitting a classic startup challenge. As the business grew and more restaurants signed up, their financial tasks became increasingly complicated. With a small team and no dedicated finance experts in-house, they struggled to ensure legal compliance. So, OrderYOYO opted for payroll and accounting outsourcing. According to the company’s Head of Finance, this approach provided easy access to specialized expertise and created a more stable foundation for their continued growth.
Human resources
The company’s business development often depends on the right team. Finding the right talent has become increasingly difficult for companies. The challenge isn’t just about attracting skilled professionals but about reaching them in the first place. For job seekers, standing out in a competitive market starts with a well crafted application, and professional resume examples can provide valuable guidance in creating a strong first impression. At the same time, companies struggle with limited recruitment channels and difficulty accessing broad talent pools.
Traditional recruitment methods like local job boards and internal referrals often fall short in today’s complex job market. The core issues companies face include:
- High demand for qualified professionals
- Limited recruitment channels
- Difficulty accessing broad talent pools
This is why many companies outsource tasks related to HR. By partnering with outstaffing service providers, businesses can tap into extensive candidate databases and gain a global reach.
The market has responded with flexible HR outsourcing models designed to meet various business needs, providing companies with more sophisticated and effective ways to build their teams. They include:
- Recruitment process outsourcing (RPO)—an outsourcing company manages the entire hiring process from start to finish.
- Employer of record (EOR) services—an external provider employs and manages staff on behalf of a business located in another country.
- Try and hire services—an outsourcing company provides a candidate who works on a trial basis at the client company before they commit to a permanent position.
- Staff augmentation—an external provider employs experts and supplies them to fill specific skill gaps in your team.
- Permanent placement services—an external provider searches for full-time employees for permanent roles at your company, managing the entire recruitment and placement process.
- HR management—an outsourcing company handles various human resource tasks like payroll processing, recruitment, performance management, and employee training.
Fintech startup: Hiring developers through staff augmentation
A fintech startup faced a tight challenge: finding three specialized developers for a six-month project with limited budget and time constraints. Traditional in-house hiring wouldn’t work as the roles were temporary. So they decided to take the outsourcing route with Neontri as their IT staffing provider. Our experts not only identified the exact experts needed but did so in just three days. Neontri team also managed all employment-related tasks, including contracts, legal compliance, workspace, and health insurance.
PepciCo: Outsourcing human resource management
With over 100,000 employees in 67 countries, managing personnel became too complex for PepsiCo. To optimize its processes, the company partnered with Hewitt Associates, a global HR services firm. The 10-year deal covered critical HR functions, including workforce administration, benefits management, and payroll support.
Customer support
As companies grow and expand into new markets, maintaining an in-house team of customer service representatives becomes increasingly challenging. Outsourcing has emerged as a smart solution for businesses across industries like e-commerce, ITC, finance, and hospitality. It helps companies to reduce labor costs, scale support quickly, and provide round-the-clock support.
External providers can handle all the processes related to customer interactions, from basic inquiries and technical support to order processing and live chat assistance. This approach allows businesses to maintain high-quality service without the complex logistics of managing a large internal support team.
Microsoft: Outsourcing technical support
Microsoft is well-known for its open approach to outsourcing. The company publicly disclosed that it expanded technical support across 100 countries by partnering with a third-party vendor. Their primary goal was to maintain efficient global IT operations while reducing costs.
Uber: Outsourcing customer service
As Uber expanded internationally, the company restructured its support operations by engaging multiple external providers. They established service hubs in different countries, investing millions of dollars to create a comprehensive customer support network that ensures users can easily reach the company from anywhere in the world.
Supply chain management
Businesses outsource supply chain management (SCM) for several reasons:
- Supply chains are becoming increasingly complex, driving the need for external expertise.
- Many companies aim to focus on improving their products to stay competitive, which leads them to delegate non-core activities to external providers.
- Outsourcing helps tackle the common challenge of reducing operational costs.
The SCM outsourcing market was valued at $26.7 billion in 2023 and is projected to grow at a CAGR of 8.6% annually through 2030. This suggests it will continue to play an integral role in the business strategies of many companies.
Manufacturing and production
Businesses often turn to factories located in different countries to reduce production costs. Key industries leveraging this strategy include consumer electronics, automotive, pharmaceutical, and fashion sectors. The scope of outsourcing manufacturing services ranges from simple product assembly to managing the entire production process—including raw material sourcing, quality control, and packaging.
Apple: Outsourcing device production
A significant part of Apple’s success can be attributed to outsourcing its device production. The tech giant works with Taiwanese manufacturer Foxconn, which operates production facilities across China. Reportedly, all of Apple’s flagship products—iPhones, iPads, and MacBooks—are produced by this company. This outsourcing strategy has enabled Apple to meet growing market demand for its devices without compromising on innovation.
Nike: Outsourcing footwear production
Nike is one of the best outsourcing examples as the company entrusts all its production to contractors in the Philippines, China, and other Asian countries. While employing approximately 500,000 people through its manufacturing partners, the apparel brand owns no production plants. Yet, this strategy has not hindered the company’s success—in fact, Nike holds an impressive 47% market share in sportswear fashion.
Logistics
Outsourcing logistics allows companies to tap into well-established delivery networks and ensure smooth operations. However, logistics functions aren’t limited to distribution. Businesses can also delegate tasks like warehousing, inventory management, order fulfillment, customs brokerage, and return management. Generally, most businesses that manage the distribution of large volumes of goods, whether domestically or internationally, may benefit from logistics outsourcing.
Fair Havens: Outsourcing logistics to Amazon
Fair Havens, a Singapore-based skincare company, uses Amazon’s third-party logistics services to reach customers in the US and the UK. The company outsourced critical logistics functions, including warehousing, distribution, returns, and product exchanges. According to Fair Havens’ founders, this move helped them achieve triple-digit growth.
Neontri: Your strategic outsourcing partner
Neontri stands at the forefront of IT outsourcing solutions, with 10+ years of experience helping businesses transform their operational strategies. Our expert team has built a comprehensive database of over 40,000 tech professionals, allowing them to connect enterprises with top-tier talent across various technological domains. Our approach goes beyond simple staffing, offering end-to-end solutions that include talent acquisition, project management, and comprehensive administrative support.
Final thoughts
Outsourcing isn’t just about cutting costs—it’s a smart way for businesses to focus on what they do best, grow efficiently, and stay competitive. The examples of outsourcing we provided in this article show how companies succeed by delegating tasks like software development, recruitment, and production to external providers.
If you’re looking for IT outsourcing services, Neontri is here to help. Contact us today for a consultation!
FAQ
What challenges do companies face when outsourcing IT services?
Companies often struggle with communication barriers, data security risks, and maintaining quality control when outsourcing IT services. Differences in time zones, cultural nuances, and technical expertise can complicate collaboration, while ensuring robust cybersecurity and protecting sensitive information becomes increasingly complex when working with external providers.
What industries outsource IT support the most?
Businesses in many industries turn to IT support outsourcing to streamline operations and access specialized expertise, including:
- Technology businesses—to handle help desk services, app maintenance, and cloud infrastructure
- Healthcare organizations—to manage electronic health records, ensure data security, and support telemedicine platforms
- Financial companies—to maintain secure transaction systems, meet compliance requirements, and handle data-intensive processes
- E-commerce and retail businesses—to optimize website performance, manage payment gateways, and ensure seamless operation of point-of-sale (POS) systems.
However, this is not an exhaustive list, as IT support outsourcing examples can be found across many other sectors.
Resources
- https://www.mordorintelligence.com/industry-reports/outsourcing-services-market
- https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-operations/us-global-outsourcing-survey-2022.pdf
- https://aws.amazon.com/solutions/case-studies/innovators/snap/
- https://cloud.google.com/blog/products/serverless/how-the-bbc-uses-cloud-run-and-bigquery-to-process-logs
- https://techblogwriter.co.uk/fractal-analytics/
- https://www.hrotoday.com/news/talent-acquisition/hewitt-associates-to-provide-hr-bpo-services-to-pepsico/
- https://www.computerworld.com/article/1547651/microsoft-signs-outsourcing-pact-with-indian-giant-infosys.html
- https://www.persistencemarketresearch.com/market-research/supply-chain-management-bpo-market.asp
- https://www.outsourceaccelerator.com/articles/nikes-approach-to-outsourcing/
- https://sell.amazon.com/blog/3pl-third-party-logistics
