In this article, we are going to list the 15 biggest outsourcing companies in the world. Click to skip ahead and jump to the 5 Biggest Outsourcing Companies In The World.
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.
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.
Biden’s offshoring penalty surtax will also apply to call centers or services by an American company located overseas but serving the United States, where jobs could have been located in the United States.
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.
Require a true minimum tax on ALL foreign earnings of United States companies located overseas so that we do our part to put an end to the global race to the bottom that rewards global tax-havens. This will be 21% — TWICE the rate of the Trump offshoring tax rate and will apply to all income.
End the Use of Tax Haven Strategies to Allow US Companies to Offshoring Jobs and Avoid US Taxes: Biden will close this loophole by ensuring that the minimum tax applies to earnings in each foreign country separately to prevent this form of tax avoidance by US multinational companies.
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:
15. Genpact (NYSE: G)
Revenue: $2.64 billion
Market cap: $7.75 billion
Assets: $4.804 billion
Total number of employees: 96,500
Headquarters: New York, NY
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.