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Guide on Outsourcing Digital Transformation

Irrespective of which industry you pick, the talks around digital transformation and its benefits are unanimously chanted. Although the offerings don’t fall short on its promises, every brand — big and small that has worked towards the efforts of digital transformation knows that it is easier said than done.

Even the transformation strategies that are laid down by best in class plans tend to lean towards disaster when not implemented rightly. According to a Genpact research, businesses have wasted over $400 billions a year simply on misguided digital transformation efforts.

Digital transformation is not just about using technologies to make business tackle specific customer needs. It is about creating an interconnected ecosystem where the work that is done company wide is transformed for the better. Achieving this, can be a very daunting task for the in-house IT teams whose resources are consumed by tasks aimed at business continuity or are simply unskilled to take such an undertaking that affects not just the business’s bottom line but the entire culture.

This difficulty is what leads to the process of outsourcing digital transformation.

According to Accenture research, 90% companies take assistance from a third-party solution provider to help them with at least one element of business digitization. But before you delve into the reasonings that make it a good decision to outsource digital transformation framework, let us first peek into the challenges that make it difficult to cover the process in-house.

Benefits of business transformation outsourcing

1. Access to skilled resources

Outsourcing digital transformation gives you access to skilled resources who are an expert in their field. Moreover, it gives you the flexibility to choose the number of resources. You can either employ someone with a specific technical expertise or hire a digital transformation comapany who would be completely committed to your project.

Additionally, outsourcing helps with finding and building a team of skilled specialists with very less effort and in a short timeframe.

2. A first-hand experience in multiple verticals

When you partner with a digital transformation company like Appinventiv, you get to work with an agency that has experience in healthcare digitalization, fintech, energy, manufacturing, entertainment, insurtech. Partnering with such an agency would help bring greater value to the table.

3. Mitigation of risk

Being a daunting task for the new entrepreneurs, digital transformation is something that agencies have used to perform from the time of their inception. They have a complete understanding of the challenges which can emerge and how to overcome them proactively. Outsourcing the process to a digitalization consulting firm that understands your business needs would not only save money but also help reduce or rather eliminate the risks along the way.

4. Cost-effective integration of Data Science as a Service

One of the important outcomes of a digital transformation effort is the capability of leveraging Business Intelligence and Big Data opportunities for business growth. Drawing the benefits of data science helps businesses deliver customized user experiences, create innovative products, and find out new business markets and trends.

The time and cost however, calls for developing an in-house data analytics center which can add up very fast. Moreover, businesses would have to employ data science experts for whom they would have to pay big bucks. On the other hand, outsourcing the data science experts can help the businesses with customized data processing models, data-driven decisions, and turning of gathered data into graphics, insights, and visuals.

5. Greater security

When you outsource the digital transformation efforts, you can be sure of the fact that they would have the best security practices in place for protecting businesses from risks like cybercrime. Additionally, digitization of certain assets could become problematic if you rely only on in-house security. This is the next domain where the outsourced expertise offers great business value to the organizations who launch such projects.

Learn more on Entrepreneur’s Guide on Outsourcing Digital Transformation