Business

BruntWork Analyzes Intel’s Cost Reduction Plan and Outsourcing Strategy

Published

2 years ago

August 13, 2024

Intel, an American multinational corporation and technology company, announced a cost reduction plan that includes layoffs and reduced outsourcing to Taiwan Semiconductor Manufacturing Company (TSMC) by 2026. TSMC is the world’s largest semiconductor foundry, providing essential services to tech giants like Apple, AMD, and Qualcomm. The change will improve profitability and capital efficiency amid financial challenges. BruntWork, an outsourcing company, provides insights into the implications of Intel’s decision.

Intel’s Financial Struggles and Plans

Intel has been facing financial difficulties, with drops in revenue, net income, and earnings per share. In Q2 2024, Intel’s revenue decreased by 1% year-over-year to $12.8 billion. The company recorded a net loss of $1.61 billion, compared to a net income of $1.48 billion the previous year. Intel’s reported earnings-per-share (GAAP EPS) was $(0.38), and non-GAAP EPS was $0.02.

Intel initiated a cost-reduction plan to save over $10 billion by 2025 to address these challenges. The plan focuses on increasing in-house production and reducing reliance on external foundries. The strategy will give Intel greater control over its supply chain, foster innovation, and better meet market demands. However, it raises questions about the outsourcing industry and the risks of such a weighty change.

The Critical Role of Outsourcing in Business Efficiency

Outsourcing has long been important to business strategy, providing flexibility, cost reduction, and access to specialized expertise. For Intel, it benefits chip design, software development, and manufacturing. BruntWork’s CEO, Winston Ong, states, “Outsourcing allows businesses to focus on their core competencies while leveraging external expertise for non-core functions. The approach reduces operational costs and enhances overall business performance.”

Outsourcing benefits areas like data entry, customer support, and IT services. For data entry, it reduces errors and increases throughput, crucial for businesses handling large data volumes. Customer service outsourcing enables 24/7 assistance across time zones, maintaining high customer satisfaction.

In IT, it provides access to diverse expertise without in-house hiring, allowing flexible scaling of operations. BruntWork’s virtual assistants exemplify these benefits, using advanced tools like data entry automation software, customer relationship management (CRM) systems, and IT service management platforms to enhance efficiency and accuracy beyond in-house capabilities.

Why Cutting Outsourcing May Not Be the Answer

Intel’s decision to reduce its reliance on outsourcing has sparked debate about the potential risks and benefits. In-house production can offer greater control and potentially faster innovation but also presents challenges. The transition requires investment in infrastructure and talent, and missteps could lead to operational disruptions and increased costs.

Winston Ong of BruntWork offers a nuanced view, stating, “Intel’s move towards in-house production is understandable given their current financial pressures, but it’s important to recognize the value that outsourcing brings. Outsourcing provides flexibility and scalability that are difficult to achieve with in-house operations alone. Intel may miss opportunities to leverage external expertise and drive cost efficiencies by reducing their reliance on outsourcing.”

Outsourcing helps Intel stay ahead in semiconductors. Partnerships provide Intel access to design tools and manufacturing capabilities without investing in infrastructure. While partners handle circuit layout, verification, and fabrication, Intel can focus on architecture design and innovation. As Intel expands into artificial intelligence (IT), autonomous vehicles, and the Internet of Things (IoT), outsourcing IT services and customer support unlock access to global talent and skills that will propel the company forward.

Outsourcing also enables Intel to streamline operations and reduce inventory management, financial reporting, and customer data processing expenses. By outsourcing customer support, customers receive uninterrupted assistance, ensuring satisfaction across time zones.

Undoubtedly, outsourcing will become more important in Intel’s business approach. Partnerships with firms like BruntWork allow Intel to focus on core competencies, access technologies and expertise, and maintain its global position.

Business

Inside the $4.3B Quarter: What’s Fueling Black Banx’s Record Revenues

Published

4 weeks ago

January 16, 2026

Matthew Wiles

Every quarter brings fresh headlines in fintech, but few make the kind of impact achieved by Black Banx in Q2 2025. The Toronto-based global digital banking group, founded by Michael Gastauer, reported an extraordinary USD 4.3 billion in revenue and a record USD 1.6 billion in pre-tax profit, while improving its cost-to-income ratio to 63%.

These results not only highlight the company’s operational efficiency but also mark a pivotal moment in its journey from challenger to global leader. The big question is: what’s fueling such impressive financial performance?

Customer Growth as the Core Driver

One of the clearest engines of revenue growth is Black Banx’s expanding customer base. By Q2 2025, the platform had reached 84 million clients worldwide, up from 69 million at the end of 2024. This 15 million net gain in six months demonstrates both the attractiveness of its services and the scalability of its model.

Unlike traditional banks, which rely heavily on branch expansion, Black Banx leverages digital-first onboarding that allows customers to open accounts within minutes using just a smartphone. This approach is especially effective in regions underserved by legacy institutions, where access to affordable financial tools is in high demand.

More customers don’t just mean higher transaction volumes—they generate a compounding effect where network size, brand trust, and service adoption reinforce one another.

Real-Time Payments and Cross-Border Solutions

A major contributor to Q2 revenues is the platform’s real-time payments infrastructure. Black Banx enables instant cross-border transfers across its 28 supported fiat currencies and multiple cryptocurrencies, helping both individuals and businesses bypass the traditional bottlenecks of international banking.

For freelancers, SMEs, and multinational clients, this means faster liquidity, reduced foreign exchange costs, and simplified global operations. The demand for real-time financial services is growing rapidly—Juniper Research projects global real-time payments turnover to hit USD 58 trillion by 2028—and Black Banx is strategically positioned to capture a significant share of this market.

Crypto Integration as a Revenue Stream

Another key revenue driver is crypto integration. While many traditional institutions remain hesitant, Black Banx embraced digital assets early and has built infrastructure to support Bitcoin, Ethereum, and the Lightning Network. In Q2 2025, 20% of all transactions on the platform were crypto-based, reflecting strong customer appetite for hybrid banking services that bridge fiat and digital assets.

Revenue comes not only from transaction fees but also from value-added services like crypto-to-fiat conversion, staking yields (4–12% APY), and blockchain-enabled payments. For customers in markets with unstable currencies, these services act as a financial lifeline, further expanding the platform’s relevance.

AI-Powered Efficiency and Risk Management

Record revenues would be less impressive if costs ballooned at the same rate. But Black Banx has proven adept at balancing growth with efficiency. Its cost-to-income ratio improved to 63% in Q2, down from 69% a year earlier, thanks to heavy reliance on AI-powered automation.

AI now drives fraud detection, compliance, and customer onboarding—areas where traditional banks often struggle with cost inefficiencies. By automating these processes, Black Banx can process millions of transactions securely while maintaining profitability at scale. This level of efficiency is rare in fintech, where high growth often comes at the expense of margins.

Regional Expansion and Untapped Markets

Geography also plays a role in fueling revenues. Much of the Q2 growth came from Africa, South Asia, and Latin America—regions where demand for mobile-first banking continues to soar. In 2024 alone, Black Banx reported a 32% increase in SME clients from the Middle East and Africa, signaling the strength of its positioning in underserved markets.

By extending services to populations previously excluded from formal banking—migrant workers, rural communities, and small businesses—Black Banx taps into vast pools of latent demand. The strategy proves that financial inclusion and profitability are not mutually exclusive but mutually reinforcing.

Diversified Revenue Streams

Another factor behind Q2’s record revenues is Black Banx’s diversified business model. Income is not tied to a single service but spread across multiple streams, including:

Transaction fees from cross-border transfers and payments.
Crypto trading and exchange services.
Premium account features for high-net-worth clients.
Corporate services for SMEs and international businesses.

This diversification insulates the company against volatility in any single segment, creating stable revenue growth even in shifting market conditions.

Michael Gastauer’s Strategic Blueprint

Behind these results is Michael Gastauer’s long-term strategy: scale aggressively but with efficiency, innovation, and inclusion at the core. His vision has always been to create a borderless financial ecosystem, and Q2 2025’s performance is evidence that this vision is not only achievable but sustainable.

By balancing mass-market accessibility with premium features, and by blending fiat with digital assets, Gastauer has positioned Black Banx as a category-defining player in global finance.

The Road Ahead: Toward 100 Million Clients

Looking forward, the company’s goal of reaching 100 million customers by the end of 2025 will likely be the next catalyst for revenue growth. More customers mean more transactions, more data insights, and more opportunities to refine and expand its service offering.

If current momentum holds, the USD 4.3 billion quarterly revenue milestone could be just the beginning of an even larger growth story. The challenge will be ensuring systems scale securely while maintaining trust in an environment where privacy and compliance are paramount.

A Record That Signals More to Come

Black Banx’s Q2 2025 performance—USD 4.3 billion in revenue, USD 1.6 billion in pre-tax profit, 84 million clients worldwide, and a lean 63% cost-to-income ratio—is more than a financial milestone. It is a signal of how the future of banking is being rewritten by platforms that are borderless, crypto-inclusive, and data-driven.

What fueled this record-breaking quarter is not one innovation but a combination of strategies—scalable onboarding, real-time payments, crypto integration, AI efficiency, and expansion into underserved regions. Together, they form a model that doesn’t just challenge traditional banking but actively builds the foundation for global dominance.

For Black Banx, the road ahead is clear: the $4.3 billion quarter is not an endpoint but a launchpad for even greater scale and profitability.