After the dreadful pandemic of COVID-19, a wide range of organizations have begun to show interest in utilizing digital technologies and solutions to increase their productivity and get an edge over the competition.
Digital transformation solutions enable organizations to design and adopt new and innovative organizational cultures, technology-backed processes, and enhanced customer experiences (CX). With the ability to get rid of old, rusty, and outdated legacy systems, it empowers businesses to operate with full potential while meeting their productivity goals. Such a solution can become a foundational stone in raising the stature and reputation of an organization in the core clientele's eyes regardless of the industries it is applied.
Nowadays, finance, investment, gaming, banking, delivery, and every other industry one can think of has opted for offering services and products digitally. Following that, increasing online footprints has become the new norm for businesses of all sizes and shapes. Startups, especially the ones with entrepreneurial mindsets, have started to look for firms to effectively outsource digital transformation and reinforce their digital presence right from when their business or idea is in its baby steps.
Why is Outsourcing More Practical for Businesses Who Want to Focus on Their Core Offerings?
The world of entrepreneurship offers endless possibilities. An entrepreneur might have started with pharmaceuticals, eCommerce, gems and stones, books, or any other kind of business in which he holds significant prowess. However, while bringing your startup to a mass of potential prospects through the power of the internet sounds interesting, managing an entire team of digital professionals seems utterly impractical.
Having a digital edge can help a business exceed expectations. However, not all entrepreneurs have the technical expertise to manage an extensive digital transformation team. Neither do they have the time to divert his attention toward digital transformation from his core business. Outsourcing digital transformation emerges as the ideal option here.
Can a Business Survive Without Digital Transformation?
The simple and firm answer to this question would be - no. Today, digital innovation is unquestionably the best way to improve business workflows and reach larger audiences. And, when audiences see your brand as an ingenious entity that is capable of adapting to a changing business environment to make their lives more comfortable and solve their problems effectively, they will likely start to trust the business with their hearts. It's almost impossible for a business to survive, let alone gain unicorn status, without investing time and effort in digital transformation. If a firm doesn't have a digital transformation framework internally, outsourcing it should be its priority.
What does Digital Transformation include?
Digital transformation involves more than just utilizing technology to assist businesses in meeting specific client needs. It is more about establishing an interconnected ecosystem in which the work done across the entire organization is improved. The internal IT teams may find it difficult to accomplish this because their time is already taken up with tasks related to business continuity or because they lack the necessary skills to take on a project. Such a condition will have an adverse impact not only on the business's bottom line but also on its entire culture.
And what's more, even the transformation strategies outlined in "best-in-class" plans tend to fail when improperly carried out. According to a study conducted by Genpact, businesses worldwide waste more than $400 billion annually on misguided digital transformation initiatives.
So, how an entrepreneur or startup owner can step up for business transformation outsourcing? Here you go:
Following these digital transformation framework steps outlined below, you will be able to leverage the potential of digital technology to assist your business in evolving and becoming scalable.
1. Know More About the Field and Technological Trends
Knowing the trending technologies and making wise decisions is one of the most critical steps before you opt for digital transformation outsourcing. A significant amount of time must be spent studying the market to determine what types of innovations are required to help your current business achieve a certain level of digital maturity. For example, 3D printing is a technology that is ready for mass deployment, but it is currently only available in the automotive sector and for product design. Hence, as an entrepreneur, you have to research how digital transformation can help you with that.
2. Doing Your Part of the Research
It is very important to ensure that your internal processes and business transformation outsourcing go hand in hand. This strategy will help you leverage the full potential of the firm you are going to hire for digital transformation. For example, you might want to know if your printing processes are compatible with outsourced digital technologies such as Wi-Fi 6. It would take much more than updating printer drivers and installing new software. The workflow would need to be modified as well to allow more devices to connect and print. Security procedures must also be reviewed to ensure that devices do not become vulnerable to hacking. Such a deep level of pre-thinking you would need to carry out before assigning digital transformation to the third-party service provider.
3. Careful Deployment of Technology
Technology needs to be frequently implemented through small-scale tests to pilot projects. Sometimes, it will demand a complete redesign of an organization's current equipment and technological infrastructure. Since these technologies will be new to your organization, every disruptive technology deployment, such as the rollout of 5G data services, augmented reality, 3D printing, and more, needs to be thoroughly structured, thought out, and deployed. Data and insights play an important role here. If the available data indicates that a technology deployment is necessary, only then should one move forward—but not at the expense of creating new problems and hurdles.
4. Monitor And Analyze The Results
The best way to make sure that deployment is successful is to have a digital transformation company conduct a structured, ongoing, and meaningful review of whether the digital solutions have fulfilled specific business needs or not. It makes it easier to comprehend how technology is improving workflows and reducing costs, as well as whether or not additional process improvements will be needed in the future. If the technology isn't working and you need to reset and start over, you'll be aware of it.
Benefits of Outsourcing Business Transformation
1. Minimum Risk
Digital technology adoption is a huge task in itself, especially for small businesses. Since digital outsourcing companies have been doing it for a long time, they can help a company achieve its technology objectives without worrying about failure.
2. High Security
Digital transformation companies with a track record of delivering cutting-edge technology will likely be skilled at defending your business from online threats. Relying solely on the internal IT security team for all of your technological requirements is also risky, as they might not possess the required skills or competencies. In this way, outsourced firms add value to your company.
3. Experience Across Verticals
A reputable agency would either have vast experience working with businesses in the same industry or various industries. Choose the kind of experience that will benefit your business the most. Working with such an agency will support the development of long-lasting, value-based relationships.
4. Get Access to Top Resources
As an entrepreneur, outsourcing digital transformation will provide you the freedom to choose from a variety of resource options. Do you need a team of people or a single person with a specific technical skill set? Just go ahead and hire remote developers! Additionally, outsourcing will assist you in finding an experienced team quickly.
Why is Managing Digital Transformation In-House Difficult?
The research findings from Genpact, which were previously discussed in this blog, also highlight some difficulties entrepreneurs find while trying to manage in-house digital transformation. Let's have a look at those problems:
The presence of a non-digital organization culture
- Lack of digital skillset.
- Inherent limitations of the Agile Transformation process.
- Lack of a security-first digital transformation approach.
- Hard to let go of legacy architecture.
Opportunities Entrepreneurs can Embrace with the Incorporation of Digital Transformation Outsourcing in Business:
- Use the capabilities of big data analytics, data science, and business intelligence services to deliver a customized user experience, identify emerging market trends, and even create new services and products.
- Utilize IoT for leveling up data collection, boosting productivity, and fostering predictive modeling.
- Using AR and VR to create an engaging customer experience.
- Use automation and digitization processes to reduce costs, boosting productivity, and enabling people to focus on R&D instead of low-outcome tasks.
- Virtualizing the workforce and connectivity with the universally dispersed specialists.
- Using APIs for increasing flexibility, establishing connections with other platforms, and improving user interaction.
- Using AI to help people make better decisions and find answers to complex issues.
Also read - AI and IoT: Two Powerful Entities That Will Revolutionize Business
The Components of Digital Transformation
The growing significance of digitizing your business has been sufficiently highlighted up to this point. Let's explore the fundamental components that businesses should keep in mind before outsourcing digital transformation:
Companies must first identify and settle on the components that must be outsourced to a digital transformation outsourcing strategy consulting firm before they can begin the digitization of business transformation outsourcing. It's critical for businesses to comprehend their resources, as well as their strengths and weaknesses.
2. Answer to the Why
Enterprises typically outsource business digitization projects to deliver better, more sophisticated, and more digitally supported user experiences, which is the ultimate goal of every digital transformation outsourcing process. Outsourcing makes this possible because it allows businesses to avoid overhead costs while still providing the service quickly and at a low cost.
In addition to these reasons, businesses are outsourcing digital transformation solutions to take advantage of the numerous opportunities that the framework for this transformation offers—opportunities that they would not be able to obtain if they were limited to their in-house IT team.
How We Carry Out Digital Transformation for Our Clients?
We believe that every successful project starts with constructing a solid and profound digital transformation framework. By reducing the risks involved and understanding the client's requirements deeply, our approach makes it possible to design and manage transformation initiatives. The fact that we create a framework that ensures the success of digital outsourcing is what distinguishes us as a respected name in the digital transformation sector.
Our framework typically starts with an evaluation of the current digital strategy before defining the long-term objectives. Based on this knowledge, we develop a multi-element digital roadmap for our clients that helps them achieve success at every step of their digital journey. We empower them to serve their end-users with extreme efficiency, quick response, and superior services.