3 Innovations that Started from an Outsourcing Partnership

Posted by Outsourcing Insider on Nov 29, 2017 12:12:40 AM

In today’s world of business, it is rare to come across a successful organization that is not currently outsourcing various supply chain processes to offshore vendors who produce high quality results at the fraction of the price. Due to the rising trend in outsourcing, which is essentially to outsource critical business practices such as customer service, manufacturing, and application development, more and more people today have jobs all over the world. It has also resulted in the development of many amazing innovations that has changed the landscape of all major business industries and has truly made the world a better place to live in. As innovations from outsourcing seem to be rampantly coming out from the woodwork, we owe this trend to visionaries in the past who paved the way by creating innovations from an outsourcing partnership. Three examples of organizations that have achieved this in the past are:

1. Alibaba Group

In order to keep global economies thriving, organizations such as the World Trade Organizations and the World Bank have championed the idea of free trade among nations. In the past ten years, the world has seen more accelerated change in world trade thanks to the internet. In 1999, Jack Ma created Alibaba, an online marketplace that was founded to improve the global e-commerce system. In October 1999 and January 2000, this online marketplace won a total of 25 million dollars U.S twice from foreign venture capitalists. In 2005, Yahoo invested a total of 1 billion dollars to acquire a 40% stake in the company. During this time, the e-commerce would outsource many of its technological processes such as application and web design to U.S providers. In September 2014, Alibaba raised over 25 billion dollars in an Initial Public Offering (IPO) on the New York Stock Exchange. Today it is a suitable destination for organizations all over the world looking to outsource business practices and processes to China.

2. Skype

Another visionary that utilized outsourcing in creating an application that produced massive innovation is Skype.  For those not in the know, Skype is the ultra-popular communications application that allows free communications with family and friends around the world. It is an application on the computer or smart phone that allows you to send text messages, pictures, and videos as well as to make calls and video chat. Skype was created in 2003 by two authors: Nikklas Zennstrom and Janus Friis, who both hailed from Sweden and Denmark respectively. These two visionaries had a brilliant idea on improving the way the world communicated online by establishing a program where people could video call, text, and send pictures and videos. Skype was such a massive innovation, that Microsoft and Macintosh had never even hinted that they were developing technology that would allow video chatting on a multi-platform level.

It was only in 2006 when Microsoft and Macintosh developed their own video conferencing technology. To date, video conferencing was such an innovative technology that it has now expanded into other extremely popular platforms such as:

  • Windows
  • Mac
  • Linux
  • Android
  • iPhone
  • PlayStation

How this innovative technology was created through outsourcing was Zennstrom and Friis contacted various Estonian developers to help develop the application and its features. Skype was such a tremendous success that it was acquired by Microsoft for 8.5 billion dollars.

3. AppSumo

AppSumo is known throughout the internet as a deals website where for digitally distributed goods and online services. This website was established in March of 2010 by American internet entrepreneur Noah Kagan. The website currently helps thousands of online entrepreneurs and businesses as it serves as a portal where people can find materials, products, and services at the cheapest rates. The application is very user-friendly as it works to produce daily deal ad copies and email marketing literature that help online businesses find what they are looking for at extremely cheap rates. The development of AppSumo is a Cinderella tale of success garnered through outsourcing as Kagan hired a remote application developer to develop the AppSumo website for just $50. The creator was such a skilled and experienced apps developer that the website turned out to be extremely professional looking and feature-rich. Kagan then proceeded to outsource the application by selling subscriptions on Imgur Pro, a photosharing website. Today, AppSumo is valued at $2 million.  

With more than a decade of providing the best Outsourcing Solutions in the Philippines, Infinit-O Global Services has successfully partnered with many organizations that have since attained financial success in their respective industries. These organizations belong to major industries that have provided substantially for the country’s economy such as:

  • Healthcare
  • Finance
  • Contact Center
  • Data and Research

For more information on the innovations created from outsourcing partnerships, feel free to contact us here.


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