In the era of Uberisation, with products, services, and businesses getting dynamically transformed, company leaders need to constantly maintain a competitive edge. Many modern businesses implement digital transformation to drive radical changes necessary for adapting to new market rules.
It comes as no surprise that all forward-looking enterprises strive to reap the harvest of digital transformation as soon as possible. Yet they face the challenge of finding the right specialists for it. According to the survey undertaken among more than 340 US companies, businesses with the highest level of digital transformation make 100 million dollars more each year than those who fail to keep up.
WEF Report predicts that digital transformation in different industries will bring in more than $100 trillion of combined value during the next 10 years. However, increased profits are just one of the numerous business benefits of implementing digital transformation. In the long-term perspective, it gives way to further innovations and paves a path to a sustainable and future-proof business transformation process.
Source: Capgemini report ( involving over 1,500 executives in 106 countries)
Challenges companies face while implementing Digital Transformation
It’s worth noting that digital transformation is not about using separate technologies to fix certain problems. It’s about building an interconnected, integrated system, targeting many areas and leveraging a set of digital opportunities which are the best fit for your company. And this is not an easy task to tackle with just in-house effort while having limited resources and often lacking experience and expertise in many spheres.
Therefore, companies build partnerships with software outsourcing vendors to tap into the expertise they don’t have in-house. Outsourcing of digital transformation services gives you access to comprehensive expertise and an exhaustive expert pool essential for its implementation.
According to Genpact, enterprises which look to undertake digital transformation may lose en masse about $400 billion a year because of taking erroneous steps. That’s why combining in-house effort with outsourced digital transformation services is deemed to be a sensible solution by many decision makers.
Accenture research states that 88 % of companies contact a third-party solution provider for at least one ingredient of their digital transformation (average number is 3.4).
Key opportunities you can embrace by outsourcing digital transformation implementation
- Drawing on data science, big data, and BI to deliver bespoke user experiences, spot new business trends and markets, as well as develop innovative products;
- Using IoT, sensors and dispersed end-points to level up efficiency, collect data, and foster predictive modeling;
- Using VR and AR to create exciting and engaging customer experiences;
- Automating and digitizing processes to increase performance, reduce costs and allow people to focus more on R&D, rather than performing mundane tasks;
- Virtualization of the workforce and connecting with globally dispersed specialists;
- Using APIs to enhance flexibility, connect with various platforms, and shape a better user experience;
- Engaging AI and learning machines to work cooperatively with people on resolving problems and answering complex questions.
6 compelling advantages of implementing digital transformation in partnership with IT outsourcing vendors
- Established outsourcing vendors have necessary expert knowledge in such areas as Big Data, Blockchain, enterprise content management, enterprise mobility, IoT, VR, AR, and more. As mentioned previously, digital transformation in banking and every other industry calls for a holistic approach. It demands systematic changes in many areas and requires expertise in various domains and technologies. Third-party providers can help you bridge technology gaps you may have and add capacities you may be lacking.
- It reduces strain on your in-house staff and gives you unlimited access to world-class specialists. Large-scale digitization requires a lot of manpower. Outsourcing provides you with a rich pool of available resources.
- Flexibility and scalability. You may order an on-demand service and engage a person with particular skills for a short time, while you need them. Or you may cooperate with a dedicated development team, which will be fully committed to your project and work as an extension of your in-house team.
- You can take advantage of Data Science as a Service. It is virtually impossible to imagine digital transformation without leveraging Big Data and BI opportunities. However, building your in-house data analytics centre is costly and time-consuming. What’s more, expert data scientists are quite scarce, while the demand for them is quite high. Data science service providers can create custom data-processing models for you, turn aggregated data into insights, graphics, and visuals, and help you make data-driven decisions.
- Outsourcing will help you to save time, costs, and mitigate risks. Experience, qualified manpower, and hands-on expertise help to take more timely and well-founded steps.
- You can leverage the provider’s experience in digitizing businesses in various industries, from telecom (Lebara) and hospitality (HotSchedules) to aviation technology (Gogo).
Whether to go digital or not is not a choice anymore if you want your business to be a market leader in the long-term perspective. However, outsourcing of digital transformation services has proven to be a perfect solution if you want to do it in the most efficient manner and take most advantage out of it. It offers such benefits as a large talent pool, wide-ranging expertise, relevant experience, cost reduction, time effectiveness, mitigation of risks, and a proactive data-driven approach.