Top 8 Reasons to Outsource Digital Transformation!

8 Reasons Why Outsourcing Digital Transformation is the Smartest Choice

Is digital transformation as advantageous for businesses as is the hype around it?



Updated on :
January 13th, 2021
Twinkle Kalkandha
Twinkle Kalkandha
Product Strategist

The success stories that we keep hearing about digital transformation and its effects on the companies and operations has got the attention of every company that is still heavily relying on conventional methods for running their business and interacting with customers. Outsourcing digital transformation projects is a solution that people are still waking up to.

Companies across the globe will be spending $2.3 trillion each year by 2023 on digital business transformation, as per the study conducted by International Data Corporation or IDC, in 2019. There is little margin of error when organizations are willing to shed big chunks of money to automate, streamline, and upgrade their capabilities.

A dedicated organization with a careful & calculated approach is much better equipped to realize a company’s full digital potential.

When companies self dissect, things can get messy

A similar study conducted by Genpact on failed digitization efforts revealed that about $400 Billion goes down the drain due to an ineffective digital transformation strategy.

When companies attempt to suddenly change the way employees communicate with each other, with the customers, with clients, with their machines and with contracted corporations, without proactive training or experience then there is a big chance of things getting messy.

This whole operation is delicate due to the psychology of change in humans, which usually resists new things. Dedicated entities with experience in tools, resources and the strategy to harmonize the entire process is a safe bet for companies looking to integrate the latest technologies.

digital transformation outsourcing

8 Reasons Why Outsourcing Digital Transformation is the Best Way to Level-Up

1) Practical Experience & expertise

When companies go for transformation, it is usually company-wide and requires a holistic knowledge about different departments and respective technology upgrades. Best outsourcing transformation companies have the correct know-how and hands-on experience to weed out all obstacles.

2) Increased Human resource

The in-house team will always have their personal targets and KPA’s to focus on. Using the company’s in-house teams to create and execute the digital transformation solutions will directly result in decreased operational success or a half-hearted commitment to digitization. Both scenarios can have a grave impact on a company’s finances.

3) Access to the latest software

Emerging technologies and tools that can optimize business functions are constantly evolving. Artificial intelligence, Blockchain, IoT, cloud capabilities, faster and smarter connectivity is always evolving.

Knowing about these technologies is one thing but having the right expertise, creating contingencies and planning the best approach to integrate this with the existing structure is something else completely. Outsourcing companies actively help in creating, adapting, maintaining & updating these technologies into an existing culture.

4) The latest hardware

Companies usually resist moving out of their legacy equipment and old technology because of sentimental reasons. The efficacy of the latest technologies that designated digital transformation companies bring to the table has massive potential.

By outsourcing, organizations get access to high grade, advanced equipment and infrastructure to support and maintain the new technologies without heavily investing in expensive equipment.

5) Big Data & Bigger solutions

A big advantage of modern technology is the ability to find out exactly what the customers need and why. Collecting data about the user’s behavior and making sense of it all has become simpler and uncomplicated.

Digital transformation services providers have skilled professionals with experience in handling big sets of data and deciphering critical insights. A valuable skill that is often missing in a company that wasn’t relying that much on technology, to begin with.

6) Security & Privacy

Digitization comes with its own set of challenges and precautions. Every time a new technology enters the market, the topic of data privacy and security are bound to come up.

Machine learning & AI process large sets of data. In such cases, it becomes increasingly important for organizations to safeguard customer details and transactional information.

Digital transformation companies that provide outsourcing services also help in installing firewalls and encryptions to ward off any attempts at data theft. Compliance with security regulations and best practices make sure there are no data leakages.

7) Pocket friendly & technology friendly

Purchasing software and hardware resources for the complete digital transformation process can become very expensive for a company with hundreds or thousands of employees. Add hiring technology-friendly manpower, training, and transitioning practices to the mix and the bill really start to pile up.

With business transformation outsourcing, the infrastructure and resources are already in place. This makes it a lot more economical, faster, and way more effective.

8) Distribute risk & collect rewards

Creating a complete in-house base will create substantial financial risk for the company. There is a prospect of great reward but why go for unnecessary risk when there is a better offer? A pocket-friendly offer that specializes in creating and executing industry-specific business transformation strategy.

Spreading out risk secures the company from any financial turbulence and the rewards of an effective transformation are bountiful.

The price of digital transformation outsourcing

While the above-mentioned indicators cover all advantages of hiring a third-party outsourcing company, you could still have money on your mind. If you need to base your digital transformation decision purely on the cost, then follow these steps to have a general idea about your savings.

digital transformation process

1st- Evaluate the task requirement and how well equipped the team is to work on it. Can people be spared for this additional task, do you have sufficient manpower? Also, identify which task will need to be outsourced and which can be managed in-house.

2nd – Next, you should try to calculate the cost of operations if you complete the task in-house and purchase products or hire resources accordingly. This would mean the cost of software, hardware, supplies, infrastructure, cost of onboarding, hiring e.t.c.

3rd – Contact third party digital transformation outsourcing and inquire about the cost of outsourcing a single or multiple processes.

4th – Subtract the Total in-house cost with Outsourcing cost and you will get an estimate of the money you will be saving in the process. In case you feel you are missing out on any important metric then consult the cost breakdown that you receive from the outsourcing company.

How are Mobile Apps boosting digital transformation?

Mobile apps are the holy grail of successful digital transformation & have far-reaching influence in business operations and customer experience.

Smartphones have established themselves as an irreplaceable personal partner that connects, informs, entertains, teaches and constantly upgrades to reflect the latest technologies & trends.

This form of technological up-gradation has become an accepted fact even among people who aren’t heavily invested in technology.

Creating mobile apps that help manage projects, strengthen communication, and synchronization amongst team members and company objectives is an effective way to familiarize employees with the latest digital upgrade.

Outsourcing mobile app development to a company within your budget, with the understanding of your objective & your creative process, can make the whole “old to new” transition smooth and uninterrupted. The benefits of mobile app magic-

Accessibility- The substantial increase in mobile phone usage over the past decade has made mobile apps the gateway to increased engagement and access.

Flexibility- The ease of access allows for a more flexible flow of processes to accommodate any variable.
Transparency- App being the common denominator for operations & communication, it increases organizational transparency and keeps employees updated with the company’s direction & objectives.

Workflow optimization- Digital transformation allows for a better-managed workflow by setting timely workflows for all levels of operations, visible to people for better coordination and internal communication.

Mobile apps take optimization one step further. It allows for these workflows to be accessed & managed anytime which results in a faster & more efficient cycle.

Company-wide connectivity– Improved connectivity with people throughout the organization. Helps maintain an open and assistive work culture.

Increased Productivity – An analytical, remote-friendly, better connected, and flexible approach is a boom to productivity for any organization.

Established companies have been using apps to digitize many of their operations, including office cab management, HR portals, task progress etc.. Small businesses are using mobile apps to build customer loyalty from the get-go.

Digital transformation outsourcing might work for you too..

Keeping up with technology and digitizing operations has become necessary for all industries and organizations in today’s age. The rapid growth in technologies makes it very challenging for companies to constantly keep updated about what can work for them and how it should be implemented.

This problem of effective transition can be solved with business transformation outsourcing & companies are waking up to it. 90% of companies are now contracting a third party for digital transformation outsourcing. Whatever your business, marketing experts can make these strategies work for you too.

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