Digital transformation is essential for medium-sized companies to enhance their competitive edge, operational efficiency, and customer experience. However, companies often face challenges including limited resources, resistance to change, and the complexity of technology integration.
Moving operations overseas can help alleviate these issues by offering access to specialized skills and technologies, allowing businesses to implement digital strategies efficiently while reducing costs and refocusing on core business functions. remote staffing solutions
Digital Transformation's Stumbling Blocks
Attempts at digital transformation encounter significant resource constraints and operational obstacles that impede progress. A lack of clear strategy, insufficient training, and insufficient investment in time and resources often lead to underperformance.
Data shows high rates of failure: 70% of digital transformation projects don’t meet their goals, with most of companies not achieving their intended outcomes.
In addition, a shocking $2.3 trillion has been lost worldwide on failed projects, highlighting the urgency for effective strategies.
The core issues arise due to poor alignment with business goals, resistance to change, and lack of leadership buy-in. Solving these problems is vital for successful digital transformation.
What is Offshoring?
Offshoring is the practice of moving operations to a different country, while outsourcing involves contracting specific tasks to external providers.
The main distinction between these two models is how they engage with the workforce: offshoring often maintains direct control over employees, while outsourcing relies on third-party companies for task completion.
Shifting operations abroad can ease workloads by providing access to a vast pool of skilled professionals in offshore markets, addressing local talent shortages.
For instance, the talent shortage has surged from 36% in 2014 to 75% in 2024, rendering global hiring crucial for remaining competitive.
This approach boosts efficiency and allows businesses to tap into specialized skills without local hiring and training costs, thereby driving effective digital transformation.