Outsourcing Digital Transformation

Digital Transformation has been the most talked about topic in the recent years. It promises to revolutionize the future of work, industry verticals, the way we live, communicate, etc.?

The business landscape today is fast-paced, to say the least. The economic climate is continually changing, often posing new challenges and opportunities. Businesses around the world are dealing with an unparalleled number of new disruptions and barriers to growth, as the digital revolution reshapes consumer behavior and demands. Add to this a full-blown pandemic, the current ‘work from home’ environment, the problems of cybersecurity.

Digital transformation is helpful in introducing technologies quickly and more effectively,?as a result of which companies are better able to concentrate on their core business activities and re-energize their employees by choosing to outsource some parts of their business. Forward-thinking organizations have already recognized that digital transformation paves the road to being future-proof in today’s global business climate.?

Accordingly to the Deloitte Global Outsourcing Survey 2020, cost reduction is the primary objective behind outsourcing digital transformation projects. As per the 2018 survey, the key objectives of outsourcing were moving away from reducing operating costs to enabling speed to market, scaling faster, enhancing customer experience, and achieving competitive advantage. Now, cost reduction has become increasingly critical again, due to the impact of COVID-19.

According to IDC, 600 of the world’s largest corporations are expected to devote up to 10% of their annual sales to fund digital initiatives and the direct spending on Digital Transformation is estimated to be $5.9 trillion between 2018-2021.

Digital transformation is not about using diverse technologies to target particular issues around a business. It entails creating an integrated structure that transforms the way work is done across a business. For several in-house IT organizations with scarce resources that lack the experience or knowledge required to complete such a complex undertaking, digital transformation can be a daunting challenge.

According to an Accenture report, almost 90% of businesses employ a third-party service provider to assist with at least one aspect of their digital transformation. With that being said, integrating internal resources with outsourced digital transformation services helps organisations cross their capacity gaps and leverage the extensive expertise for a successful digital transformation journey.

By migrating software to public cloud platforms, as well as outsourcing the management and maintenance of processing, storage, and other capabilities, many CIOs are seeking to free up their personnel to concentrate on strategic activities. Companies are increasingly outsourcing services and automating activities that do not add value, such as back-office work and managed services.

In fact, outsourcing now accounts for almost 12% of the average total IT budget, a substantial jump in recent years after hovering around 10%. By 2022, with an annual growth rate of 6.2% a year, the global IT outsourcing market is expected to surpass $481 billion.

Reasons why you should outsource digital transformation:?

Whether it is modernizing software, optimizing cloud infrastructure or leveraging automation, there’s a lot you can accomplish by outsourcing digital transformation.

Additional manpower

Large-scale digital transformation efforts require enormous manpower, which can be a burden for IT departments already stretched thin by mission-critical roles. Outsourcing minimizes the burden on in-house workforce and provides a rich pool of world-class digital experts with unlimited access.

Wide experience and expertise

Digital transformation entails holistic changes in a wide variety of domains and technologies that require skilled expertise. The specialized outsourcing companies, assist organizations and provides hands-on tools with exhaustive experience in areas vital to digital transformation, such as Big Data, cloud computing, AI, IoT,?mobile app development etc.?

Mitigation of Risk

Although the digital transformation process can sound overwhelming to business leaders undertaking it for the first time, it is not the first rodeo for a competent provider. They acknowledge the obstacles that await and know how to tackle them. To achieve success, they know what steps you need to take, and when you need to take them.?

Many industry-specific problems that might occur are also common to them. Outsourcing the process to a company that already understands the right way to accomplish business goals not only saves time and resources, it also reduces the chance of mistakes or unexpected issues along the way.

Flexibility and Scalability

You can scale the size of your digital transformation team according to the market demand when you work with a competent provider. This allows you the opportunity to manage costs. You can engage resources with specialized expertise for as long as you need or enjoy the advantages of a committed development team working as an extension of your in-house employees.?

Better equipment and security

Outsourcing helps companies to take advantage of high-quality up-to-date technologies without having to make a large upfront investment in resources. To secure customers from cybercrime, professional?service providers already have the best security practices in place.

Going digital has become imperative for businesses that want to stay ahead of the curve and become market leaders. New technologies are evolving so quickly that most internal IT teams lack the technological skills or business expertise to recognize the best solutions for their organization.?

Outsourcing the digital transformation is important for the companies that want to focus and succeed in their core business without having to invest resources on non-core but strategically important activities like implementing new technologies, digitization of their legacy operations and processes and modernizing software.