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whatsapp outsourcing story

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In 2014, Acton and Koum sold WhatsApp to Facebook for $19 billion. Over the last two decades, the company has been working with leading truck manufacturers to enable advanced tracking, monitoring, and reporting to overcome logistic challenges. Their solution was to outsource to developers in Russia, while on-site staff focused on operations and customer relations. The WhatsApp success story has a simple, but inspiring takeaway for business entrepreneurs hoping to thrive in today’s digital age. Acton and Koum initially pitched in on the idea of a messaging tool that “showed a person’s status next to his/her photo”. It is based on a simple rule, if something is not the core competency of your company then simply just takes the task and contract it out. That led Koum to rethink WhatsApp as a full, cross-platform messenger app that would use the phone's contacts folder as "a prebuilt social network", and the phone number in place of a login. Facebook acquired WhatsApp for $19 billion six years ago. Who knows, maybe you can create the next WhatsApp? WhatsApp takes the outsourcing story in another direction…primarily to Russia. This allowed WhatsApp employees in Mountainview, California to  shift their focus on other tasks, including customer support and administrative responsibilities. Have you had a positive outsourcing experience? Outsourcing may range from providing a full service marketing and web development to email marketing campaign services and customer support. We’ve received positive feedback on the work we’ve released, and we’re now able to more successfully support our mobile platform…”. photo credit: Christopher Story . If you’re up for it, let’s get on a discovery call!Â. Staff Writer - December 9, 2020. 2. There are tons of companies that outsource to Russia - a ton of finance companies use either DataArt or EPAM Systems (company) to do their development. It’s that outsourcing works when done the right way.Â, For one, Acton and Koum’s decision to hire Russian engineers to develop their app has been indeed an effective tool to break into the market and better cater to its needs. The results far exceeded expectations as innovation and productivity were boosted by as much as 60%. However, before Facebook bought it, WhatsApp relied heavily on outsourcing software and core development. Over 2 billion minutes of voice and video calls are made on WhatsApp on a daily basis. Procter & Gamble (P&G) Outsourcing isn’t just limited to bootstrapped startups, it can also be the … WhatsApp was initially launched in 2009 by computer programmers Brian Acton and Jan Koum, who were both previously employed by Yahoo! However, as the company scaled, some of the Russian developers relocated to Mountain View, California. In fact, they have built brand assets for startups like Coinbase and Finery and tech giants like Amazon and Google. Development firms however take a very short time as compared to individuals and they would minimize bugs to build more credibility. According to Dmitrijs Jurins, Technical Director at RTL, “within a month, we had a fully functioning team to work on our products, and we were able to release new functionalities to our customers. When you think of outsourcing, you think of outsourcing to countries like India or China from the U.S. or Western Europe. It has also been a technique to gain access to talent at a significantly lower cost.Â. There is absolutely no debate that the outsourcing practice continues to thrive in today’s modern business landscape. Well, according to the book "Alibaba: The Inside Story Behind Jack Ma and the Creation of the World's Biggest Online Marketplace", in its early days, the founder Jack Ma outsourced the website development to a U.S. firm. WhatsApp: Outsourced IT Talents. Revenue generated from over 400 new products also exceeded $10 billion. REDMOND, Wash., Jan. 2, 1996 — Microsoft Corp. is moving ahead with its comprehensive outsourcing policy, which seeks to contract everyday network management chores and PC procurement and repair to vendors that specialize in support for corporate computing systems. But most startups won't make it to that caliber and that's okay. Welcome to Outsourcing Interaction! Outsourcing is not new to Mountain View, California-based Google. Outsourcing as an industry has been around for quite some time, as companies have always looked for cost-efficient ways to manage certain business processes off-site. This approach to filling the gaps worked as the firm was able to achieve its present and future goals. Yet he managed to generate $280 million in both online and offline sales for all said businesses. The global call center outsourcing market generated about USD 76.67 billion in 2019 and will reach USD 953.35 billion by the end of the analysis period. WhatsApp Story is a great way to give away special offers and capture your audience’s immediate attention. Our comments are moderated. New Delhi: Companies across the world that are hit by Covid and are under pressure to reduce cost are likely to favour outsourcing work to IT services providers in India over insourcing to their captive units in India.Many global companies are undertaking digital transformation initiatives following the Covid-19 pandemic. This approach paid off as the company earned $221 million last year and had over $900 million in cash. When he isn't contributing to various publications, he's drinking copious amounts of coffee and exploring the world with his four-legged best friend. … View full profile ›. It is interesting to note that the success of top tech companies such as WhatsApp, Slack and Skype can be credited to outsourced development. Outsourcing may range from providing a full service marketing and web development to email marketing campaign services and customer support. Over the past decade, the company has handed out some software maintenance and development projects to third-party technology vendors such as Genpact and Infosys. Reading Time: 11 minutes With more than 2 billion users worldwide, Whatsapp is the second most used platform after Facebook.It has also turned into one of the most used marketing channels. But what makes the WhatsApp story a particularly unique one is the fact that when they used outsourcing, it literally transformed the app from an idea to a digital juggernaut. Outsourcing. Your comment may not appear immediately. . This is an analytical approach case study. I bet everyone knows what’s Slack since it’s one of the most widely-used cloud-based service … Job Seekers: What Are the Best Job Boards for Software Developers and Engineers? Success stories like this have generated a lot of business for the MetaLab. Creating a digital start-up may sound promising for most of us at first, but it undoubtedly presents a multitude of challenges. By. This approach helped the company innovate even with government restrictions and stiff competition from eBay. perfect solution for giant product companies like P&G, Alibaba used to outsource IT development to the U.S, WhatsApp was purchased by Facebook for $19 billion, some of the Russian developers relocated to Mountain View, California, $221 million last year and had over $900 million in cash. When Slack first started, it was an internal team collaboration tool that was used by a small team. But, that’s not always the case! As this topic continues to be on the minds of project managers and CTOs, let’s explore some success stories. If they didn’t follow this approach, the chat app might not have gotten off the ground or made any money. 1 billion people use WhatsApp every day. For instance, Facebook was just beginning to emerge into the online scene with its own messaging tool, and Blackberry Messenger (BBM) was becoming increasingly prominent at the time.Â. All around the world, WhatsApp is the first choice for many users looking to stay in touch with friends, family and now businesses as well. All Rights Reserved. Nearshoring and offshoring are most popular among businesses that want to better manage costs. The app initially focused on statuses; Koum later revealed that part of his motivation was to stop missing calls will he was the gym. Way to go! Outsourcing isn’t just limited to bootstrapped startups, it can also be the perfect solution for giant product companies like P&G. Outsourcing services to other firms abroad present very obvious advantages (as previously elaborated in the above). WhatsApp. BROWSE THE SOURCE - 5,000+ PAGES; News Latest outsourcing news in the BPO industry; BPO Directory Listing over 700+ business process outsourcing companies; Articles Read the best outsourcing articles that help businesses save up to 70%; Guides Read the best outsourcing guides that help businesses save up to 70%; Podcast Outsourcing talk show that tackles once outsourcing … To eliminate a threatening competitor to their Messenger app , Facebook acquired Whatsapp for 19 billion. Since WhatsApp stories don’t last for more than 24 hours, it can create a sense of ‘fear of missing out.’ That’s a pretty large jump from their $250,000 initial capital, right? To maintain a competitive advantage, you have to be the first to come out with a new product. Join over 100,000 of your peers and receive our weekly newsletter which features the top trends, news and expert analysis to help keep you ahead of the curve. Before you know it, you’ve lost all your start-up money.Â, While Acton and Koum developed the initial idea for WhatsApp, they were well-aware of the staunch competition they were about to meet. © Business 2 Community. AScaleX is determined to help you improve on the next best idea. This is because the skills and experience required to build the world’s largest online marketplace were scarce in China but available in North America. Context. WhatsApp Stats – Highlights. With the outsourcing approach, Alibaba now known as eBay of China has 674 million annual active subscribers and has a 60% share in the Chinese eCommerce market. Across the globe, WhatsApp is used as the messenger app of choice for people looking to keep in touch with their network of friends and family. From our vantage point, it is immediately clear that the outsourcing practice became Acton and Koum’s secret ingredient to making WhatsApp launch its product efficiently. The WhatsApp success story has a simple, but inspiring takeaway for business entrepreneurs hoping to thrive in today’s digital age. After managing everything in-house for decades, P&G switched gears one day and decided to outsource some research and development activities to accelerate innovation. Whatsapp has 68.1 million users in the United States. WhatsApp: The internationally acclaimed freeware, cross-platform messenger needed to keep developing costs down after starting out with low capital. The duo gathered a small $250,000 seed fund from investors (actually their former co-workers at Yahoo who they persuaded to chip in) and had to keep costs at an absolute minimum. WhatsApp. Most of the work was done by developers based in Russia who helped keep costs down. Today, about half P&G innovation comes from collaborating with several outsourcing partners spread across the planet. What, however, has changed is Google’s strategy on outsourcing — the company now increasingly is starting to outsource non-core parts of its business, … by: Christopher Story . How did they do it? He revealed that outsourcing helped him gain such figures, delegating tasks to countries such as the Philippines, South Africa, the USA, and Malaysia. CuriosityStream … What started off as an idea of a couple of people, with some support from another country altogether, has become an outsourcing success story 12 years later. Slack. Before WhatsApp was purchased by Facebook for $19 billion, it was a small operation with five part-time employees and 30 full-time employees. WhatsApp is all over the news for its $19 billion deal with Facebook. WhatsApp is a messaging app for smartphones created in 2009 by two former Yahoo employees, Brian Acton and Jan Koum. It’s that outsourcing works when done the right way. How CuriosityStream Reached Great Success via Hiring Remote Senior Developers. The now Facebook-owned company has more than 1.5 billion users from 180 different countries, making it one of the best success stories in digital programming. WhatsApp . Right off the bat, we all know that WhatsApp is the most popular messaging application in the world. However, that’s not all as this business model can help companies access highly skilled professionals (who aren’t available locally), gain a competitive advantage, mitigate risks, and scale. Though India's legal-process outsourcing (LPO) industry is still small, it is growing fast. Acton and Koum simply knew they had to focus their priorities in order to be the best. Share your thoughts in the Comments section below! RTL is a leading custom telematics company that provides highly sophisticated logistics management tools to enhance commercial fleet safety and efficiency. In fact, a 2016 Deloitte survey showed that major companies will keep outsourcing a huge chunk of their businesses primarily to cut unnecessary costs and subsequently focus on core business operations. Lower costs, better business management, and the potential for enhanced product quality. Needless to mention, it is one of the most successful companies ever built. 2445 Augustine Dr. Suite 150 Santa Clara, Demand Generation and Lead Generation Services, outsourcing practice continues to thrive in today’s modern business landscape, The Outsourcing Debate is Irrelevant Test, Outsourcing Success Stories: 37Signals’ Decision to Refocus Efforts to the Basecamp Product. This is easily one of the most discussed examples of a successful outsourcing story. Photo: Courtesy. This is certainly a validation that the concept of creating an efficient messaging tool would be the eureka moment for two simple app engineers. WhatsApp has so far largely been kept separate to Facebook. 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