October 18, 2016 5:11 pm | Updated 1 week ago.
Time to engage in Offshore Outsourcing
The business environment in today’ Digital Age is markedly different from what it used to be in the Industrial Age. In the Industrial Age, a company’ management could put in place a business model and a business plan that could last for 3 to 5 years and the management focus was primarily on execution. The processes and procedures to create, deliver and capture value could also be developed for 3 to 5 years horizon. All that seems to have changed in today’s digital age.
In today’ digital age, the businesses need to do the following to remain competitive.
- Need to be agile: To remain competitive, the businesses need to move much faster. Outsourcing the non-core functions helps in improving management bandwidth, which in turn improves the client perception of the company’ products and services.
- Need to collaborate and share best practices: In today’ competitive environment the companies have no time to reinvent the wheel and learn all best practices by themselves. While keeping one’ competitive advantage is important, equally important is sharing of generic best practices that have been proven. Outsourcing allows companies to share such generic best practices that have been institutionalized by the outsourcing vendors by working with several companies and learning from their experience.
- Need to be global: Today almost all businesses either have global operations or are aspiring to have soon. Outsourcing can be a significant enabler towards this strategic direction. The Outsourcing vendor can not only provide some global best practices for the companies to leverage, but more importantly the outsourcing vendor (s) can provide services around multiple time zones and possibly in multiple languages corresponding to different countries of operation and, thereby, free up a lot of management bandwidth to focus on core issues of the company.
- Need to continuously innovate: Outsourcing vendor can also be a partner in the continuous innovation that is essential today, both in technology as well as domain space. This can be achieved either by leveraging the innovations that are being carried out by the outsourcing partner thru a mutually agreed arrangement or by having the outsourcing vendor dedicate specific resources to carry out the required research.
- Need to connect with their customers in a different manner thru multiple channels: In today’ business environment, continuous customer connect at all levels is a must including managing the social media interactions. Outsourcing can play an extremely significant role in this space, not only by monitoring and responding to customer queries and grievances, but also by leveraging big data analytics and mobile application technologies.
- Need to manage their costs more effectively: Last but not the least, outsourcing provides a lever to the management to manage their costs, headcount and more importantly project related ramp ups and ramp down in FTEs.
The businesses today need smart digital partners and technologies such as the Internet of Things, data analytics, mobile, cloud and social are enabling companies to gain greater insight and create a competitive edge. However, in isolation, technologies can achieve little. To succeed at digital transformation organizations, along with their partners, can combine strategic vision with the practical ability to execute and propel innovation forward within the business.
There isn’t any time for businesses to waste pondering the options and watching the marketplace develop. New entrants are already taking advantage of lower barriers to entry, and existing players are extending their reach, using digital technologies to differentiate themselves from the competition.’