March 15, 2017 12:55 pm | Updated 2 years ago.
The narrative and, therefore, the positioning of how the Offshore IT Outsourcing companies benefit the American Businesses have changed significantly over time. In the 1990s the narrative and the value proposition for the Offshore IT Outsourcing companies was that they offer significant cost savings in IT leveraging labor cost arbitrage so that the American companies can use the savings towards business growth. In 2000s post Y2K, the narrative and the value proposition changed to the availability of large talent pool, especially in STEM (Science, Technology, Engineering, and Maths), that can help in the growth of American businesses. Today with the rapid growth in digital technology on one front and the mindset and immigration policies of the Trump administration to allow only the best and brightest of people to enter America, the narrative and the value proposition of the Offshore IT Outsourcing Companies is changing to providing top-end Products and Solutions that can offer very high level of automation supported by a few highly qualified solution architects and business consultants to help the American companies in effectively implementing these products and solutions and getting the expected results. This changed positioning coupled with local delivery centers and R&D centers with premier American universities will position the Offshore IT outsourcing companies to give a competitive edge to the American businesses in today’ highly competitive business scenario.
At the heart of this shift in the positioning of the offshore outsourcing, IT companies to offering products and solutions that offer a high degree of automation to the American companies is the rapid evolution of mobile, cloud, IoT and data analytics/big data analytics technologies.
With today’ any-any-any model (access from anywhere at any time from any place), the CIOs would like to make available to the users all information ranging from sales and transaction data to social media contents in an actionable and accessible mode. The offshore IT Outsourcing companies are making significant investments in building products/solutions in this space and ensuring that all these products and solutions available on the cloud.
IoT, the next frontier in the digital revolution, helps American companies to not only reduce cost and improve productivity but also enables them to offer new products and services and make innovations in putting in place new business models. IoT, however, requires extensive integration and the Offshore IT Outsourcing companies are positioning themselves to offer highly skilled staff for implementation services. IoT also creates significant requirements around security and interoperability and the Offshore IT Outsourcing companies are investing in building products and solutions to address these requirements.
Now let us take a brief look at the investments being made by Offshore IT outsourcing companies in industry-specific innovations. Let us take as an example the Manufacturing Industry that for a long time have possibly not leveraged the latest digital innovations. Today, the Manufacturing companies in America are increasingly leveraging digital technologies, 3D Printing (3DP), robotics and other technological innovations to not only build better products but also provide more optimal and efficient operations and communicate with their customers more effectively. The Offshore IT Outsourcing companies are making significant investments in building such industry specific products and solutions that can provide a competitive edge to the American businesses.
To summarize, in D2E’ opinion, the Offshore IT outsourcing companies are rapidly repositioning themselves to offer high-end products/solutions specific to needs of the industries to provide that critical competitive edge to the American businesses that the CIOs are looking for.