The Outsourcing Strategy of Facebook

Facebook is one of the world’s largest and most successful social media platforms, with over 2.8 billion monthly active users as of 2021 [1]. However, what many people may not know is that a significant part of Facebook’s success can be attributed to its outsourcing strategy. In this article, we will explore how Facebook has used outsourcing to achieve its growth and maintain its position as the leader in social media.

Why Outsourcing?

Outsourcing is the process of hiring a third-party provider to perform tasks that would otherwise be done internally by an organization [2]. In Facebook’s case, outsourcing has allowed the company to tap into the expertise and resources of external providers, which has helped it achieve its goals more efficiently and cost-effectively.

One of the main reasons Facebook decided to adopt an outsourcing strategy was to focus on its core competencies. The company’s founders Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes recognized early on that they could not do everything themselves. They had a clear vision for the platform but lacked the necessary skills and resources to execute it effectively. By outsourcing certain tasks to external providers, they were able to focus on what they did best – building and growing Facebook.

Another reason Facebook chose to outsource was to take advantage of the global talent pool. With offices around the world, Facebook is able to tap into a wide range of skills and expertise, regardless of location. This has allowed the company to build a highly skilled and diverse workforce that is well-equipped to handle complex challenges.

Facebook’s Outsourcing Strategy in Action

Let’s take a closer look at some specific examples of how Facebook has used outsourcing to drive its success.

1. Software Development

One of the most critical functions for any tech company is software development. At Facebook, this function is handled by a team of over 20,000 developers spread across the globe [3]. The company’s outsourcing strategy allows it to tap into the skills and expertise of developers from around the world, which has helped it build a highly scalable and robust platform.

Facebook also uses outsourcing to supplement its internal development capabilities. For example, the company often hires external firms to help with specific projects or tasks that require specialized expertise. This allows Facebook to quickly scale up its resources as needed and ensure that it has access to the best possible talent for each project.

2. Marketing and Advertising

Marketing and advertising are critical functions for any social media platform, and Facebook is no exception. The company spends billions of dollars each year on advertising, and its success in this area is directly tied to its ability to reach and engage its users effectively.

Facebook has used outsourcing to supplement its internal marketing and advertising capabilities. For example, the company often hires external firms to help with specific campaigns or projects that require specialized expertise. This allows Facebook to quickly scale up its resources as needed and ensure that it has access to the best possible talent for each project.

3. Customer Service

Customer service is another critical function for any social media platform, and Facebook is no exception. The company’s success in this area is directly tied to its ability to provide a high level of support to its users.

Facebook has used outsourcing to supplement its internal customer service capabilities. The company has a global customer service team that handles thousands of queries and complaints each day, and it also uses external providers to help with specific tasks or projects that require specialized expertise. This allows Facebook to quickly scale up its resources as needed and ensure that it has access to the best possible talent for each project.

4. Content Creation

Content creation is another critical function for any social media platform, and Facebook is no exception. The company’s success in this area is directly tied to its ability to produce high-quality, engaging content that resonates with its users.

Facebook has used outsourcing to supplement its internal content creation capabilities. For example, the company often hires external firms to help with specific projects or tasks that require specialized expertise. This allows Facebook to quickly scale up its resources as needed and ensure that it has access to the best possible talent for each project.