Companies That Offshore
Offshore outsourcing can be a powerful tool to help businesses find niche talent. It can also reduce the cost of labor, boost revenue and increase competitiveness of companies.
However, companies who offshore should be aware of the potential risks associated with. 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 as a small government-owned company. Today it is a large privatised telecommunications company with operations all over the world. It is also Australia's largest fixed-line telephony service provider.
The success of the company can be attributed to its solid investment strategy and its innovative solutions. In the early days when resources were limited, the company invested heavily in the latest technology and realized that the telecommunications industry had huge growth potential. This was a fantastic decision as it allowed the company to connect Australian cities both domestically and internationally. The company also developed the first mobile phone, allowing people to remain connected to their loved ones regardless of where they were.
During the 1990s, the company faced numerous challenges, including regulation and competition from competitors. But, it did not remain on its hands and came up with innovative strategies to deal with these changes. For instance, it invested heavily in infrastructure and spent $200 billion to enhance its services. It also came up with a new idea and launched BigPond, a high-speed internet service for customers.
It also reduced its workforce and outsourced certain tasks, which resulted in savings. Additionally, it introduced an organization structure that separated roles into functional groups, rather than the traditional hierarchy. This allowed senior managers to have more control over their expertise areas.
Recently, offshore consulting company announced that it would bring its call centres back to Australia and that by 2021, all its consumer and small business calls will be answered in the country. This is a significant improvement for Telstra and will likely have a positive impact on its customers. However Telstra will continue to operate offshore call centers for its largest international business 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. The revenues of GE grew from $5 billion to over 70 billion dollars during this time. Despite these gains analysts have been unsure if the company's success can last.
GE focuses its efforts on industrial technology, services, renewable energy and power. It has also invested in additive machines, 3-D printers that can be used to create products and parts. The finance division of GE also offers commercial leasing and lending.
The most well-known item of the company is the GE washer and dryer that has been in use in American homes for more than 80 years. It was the first machine that could automatically wash and dry clothes, making it an amazing invention for household use. GE manufactures not only appliances, but also aircraft engines, medical devices and generators of power. GE plans to expand its digital business in the near future. This includes commercial software from Wurldtech and cybersecurity technologies.
GE also offshores its major business processes to India in a country where wages are cheaper than in the US. Its captive offshoring business, GE Capital International Services (GECIS) employed 12,000 workers in 2004. In offshore consulting companies , GE sold its stake in GECIS and transformed it into a standalone BPO called Genpact. GE remains a big client of Genpact, which now employs around 20,000 employees. The company has recently diversified its business by purchasing the manufacturer of the Osprey drone. GE is also investing heavily in the wind industry by supplying an 87-unit Haliade-X 14MW wind turbines to Dogger Bank C.
IBM
International Business Machines (IBM) is one of the largest technology companies, headquartered in Armonk, New York. The company provides hardware, software and other services for the IT industry. It also provides financing to assist its customers purchase IT systems and software. It also operates research labs around the globe. The company's groundbreaking research goes back to the 1880s when Julius E. Pitrat invented the computing scale and Alexander Dey created the dial recorder. Herman Hollerith also created an instrument for tabulating.
The company's corporate vision statement reflects its commitment to leadership in the information technology industry and market. The company's corporate vision statement states that it will provide quality service by combining technological expertise with business model innovation. It is also focused on customer satisfaction and value creation, which is key to its long-term success.
In recent years, IBM expanded its services business. It has also changed its name to cloud computing platform and a cognitive solutions company. IBM's software portfolio includes analytics 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 software, including the IBM Verse business email offering and the IBM QRadar security intelligence platform.
The company's hardware business has been declining in recent years, due mainly to the shift in IT expenditures of corporate clients from on-premise systems 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 presence in these fields. The company has also invested heavily in cloud computing and has a worldwide presence.
Accenture
Accenture is one of the world's leading management consulting, technology services and outsourcing companies. Accenture has a variety of strengths that make it an advantage, including deep industry expertise and knowledge and innovative technology solutions, strong relationships with top technology companies as well as global reach and scale.
Marketing, procurement, supply chains, learning and human resource management and finance are all part of the company's procedures. Accenture is also present in more than 120 countries. Accenture also provides a range of specialized services in addition to its standard offerings. For example, it offers SAP S/4HANA development as well as fast-tracking customer journeys to digital businesses. offshore consultancy company provides IT and security services.
In the past, companies have outsourced a few production functions to lower costs and increase competitiveness. In the garment industry for instance, many production functions have been outsourced Asian countries. However, in recent years the majority of companies are focusing on the provision of services instead of product manufacturing. This has resulted in a growing demand for professionals with experience in digital and IT services. The most appealing aspect is that these skills can be transferred across different industries.
Accenture offers a variety of clients and is growing its presence in key markets. Its client base includes 91 of the Fortune Global 100 and more than three-quarters of the Fortune Global 500. The company also partners with companies like Apple, Google, and Oracle to develop new technologies. For example, Accenture has partnered with SAP to create an intelligent platform solution that helps upstream oil and gas companies reduce complexity using market standards. A consortium of oil companies, such as BP and Equinor is currently testing the solution. This partnership demonstrates how companies are stepping away from traditional outsourcing to focus on services and innovation.
Microsoft
Microsoft is a leading producer of operating systems and programs for personal computers. The most well-known products of Microsoft include its Windows software line, Office suite and Internet Explorer browser. However, the company has been accused of monopoly as well as anti-competitive behaviour. In the 1990s, the company began setting up a complex web of offshore entities to transfer intellectual property and reduce tax payments.
If a client purchases Office in Seattle however, the profits don't take the short route to Microsoft's headquarters in nearby Redmond. Instead, the money begins an extended journey beginning with an affiliate company in Nevada that doesn't have to pay taxes on corporate income. Then, it crosses the Atlantic to an Bermudan company which is taxed at the island's zero-percent rate.
From there, the funds are transferred to the Puerto Rican company that accounts for research costs and transfers a small slice to an Irish firm. The company has employed structures similar to this one in other countries like Britain and Germany. The arrangement has saved the software huge billions of dollars in tax.
The software giant is facing a challenge from Congress to change its offshore strategy. The Senate Permanent Subcommittee on Investigations has stated that the company along with other technology firms, employ offshore units and tax loopholes to avoid paying of taxes. The panel is investigating claims of tax evasion by tech firms which include 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 initiative to reduce the environmental impact of wind farm development in the Netherlands. The partnership will develop digital instruments to better assess the effect of a windfarm on the local ecosystem. The tools will be utilized in aquariums to improve wildlife identification and abundance monitoring.