In this article, we are going to list the 15 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.
Iakov Filimonov/Shutterstock.com
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.
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.
S_L/Shutterstock.com
13. Wipro Limited (NYSE: WIT)
Revenue: $8.6 billion
Market cap: $14.4 billion
Assets: $10.8 billion
Total number of employees: 175,690
Headquarters: Bengaluru, India
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.
Alliance/Shutterstock.com
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.
Production Perig/Shutterstock.com
11. CGI (NYSE: GIB)
Revenue: $9.8 billion
Market cap: $5.78 billion
Assets: $7.6 billion
Total number of employees: 77,500
Headquarters: Montreal, Canada
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.
Copyright: fotomaximum / 123RF Stock Photo
10. Telus Corporation (NYSE: TU)
Revenue: $11 billion
Market cap: $20.7 billion
Assets: $29.3 billion
Total number of employees: 65,600
Headquarters: Vancouver, Canada
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.
9. Infosys (NYSE: INFY)
Revenue: $12.8 billion
Market cap: $40.6 billion
Assets: $12.3 billion
Total number of employees: 204,107
Headquarters: Bangalore, India
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.
Wright Studio/Shutterstock.com
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.
S_L/Shutterstock.com
6. Cognizant (NASDAQ: CTSH)
Revenue: $16.8 billion
Market cap: $42.79 billion
Assets: $16.2 billion
Total number of employees: 292,500
Headquarters: Teaneck, NJ
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.
5. Tata Consultancy Services
Revenue: $22.1 billion
Market cap: $100.7 billion
Assets: $16 billion
Total number of employees: 446,675
Headquarters: Mumbai, India
Tata Consultancy Services is a best-known business process outsourcing company that utilizes technology to help clients build a strong future. The Mumbai-based outsourcing company provides diverse intelligent solutions to its clients worldwide.
walterericsy/Shutterstock.com
4. Synnex (NYSE: SNX)
Revenue: $23.8 billion
Market cap: $4.6 billion
Assets: $11.7 billion
Total number of employees: 225,000
Headquarters: Fermont, CA
Synnex Corp. is involved in the provision of distribution, logistics, and integration services for the technology industry. Synnex is the parent company of the outsourcing giant Concentrix. Concentrix is a business process outsourcing company that has supported a wide range of services for its clients around the world. The Concentrix segment provides customers in vertical industrial markets a portfolio of strategic solutions and end-to-end business services.
ESB Professional/Shutterstock.com
3. Accenture (NSYE: ACN)
Revenue: $44.7 billion
Market cap: $159.85 billion
Assets: $33.5 billion
Total number of employees: 492,000
Headquarters: Dublin, Ireland
Third on our list of the biggest outsourcing companies in the world and is known for its name in the IT sector is Accenture. The company provides consulting, technology, and business ops services to a number of Fortune 500 companies. Accenture is one of the largest professional services companies in the world and employs almost 500,000 people worldwide.
Pixabay/Public Domain
2. Deloitte
Revenue: $47.6 billion
Market cap: $47.6 billion
Total number of employees: 330,000
Headquarters: New York, NY
Deloitte provides audit, consulting, tax, and advisory services to almost 90% of Fortune 500 and more than 5,000 private and middle-market companies. Deloitte’s client service professionals work across more than 20 industry sectors, including consumer, energy, resource, and industrial sectors, government and public services, financial services, life sciences, and health care, the public sector, technology, media, and telecommunications.
Andrey_Popov/Shutterstock.com
1. IBM (NYSE: IBM)
Revenue: $76.5 billion
Market cap: $105.66 billion
Assets: $153.4 billion
Total number of employees: 383,800
Headquarters: Armonk, NY
Topping our list of the biggest outsourcing companies in the world is IBM. We all know IBM as one of the largest tech companies and the tech giant also provides services to BPO, helping companies create what the organization calls ‘intelligent’ and ‘customized’ workflows. IBM aims to reinvent existing traditional business practices, helping companies enhance their digital capabilities by embracing IoT, cloud, AI, and automation.
Please see also, 15 Biggest Companies That Have Been Hacked and 15 Biggest Software Companies In The World.
Tauke / Shutterstock.com
Follow Insider Monkey on Twitter
Suggested Articles:
- 15 Biggest Companies That Have Been Hacked
- 15 Biggest Software Companies In The World
- Best E-Commerce Stocks To Buy Now
Disclosure: None. 15 biggest outsourcing companies in the world is originally published at Insider Monkey.
