This digital shift is crucial for medium-sized companies for enhancing competitiveness, efficiency of operations, and user satisfaction. However, businesses often encounter obstacles including limited resources, resistance to change, and integration complexities.
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 staff
Barriers in Digital Transformation
Digital transformation efforts face significant resource limitations and operational challenges that impede progress. A lack of clear strategy, inadequate training, and lack of sufficient investment often lead to underperformance.
Statistics reveal 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 staggering $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, change resistance, and inadequate leadership support. 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 lies in the relationship with the workforce: offshoring often maintains direct control over employees, while outsourcing relies on third-party companies for task completion.
Shifting operations abroad can alleviate workload by providing access to a vast pool of skilled professionals in overseas regions, to overcome talent gaps locally.
For instance, the skilled worker shortage has increased dramatically, rising from 36% in 2014 to 75% in 2024, making global recruitment essential for maintaining competitiveness.
This strategic shift enhances efficiency and allows businesses to tap into specialized skills without local hiring and training costs, thereby driving effective digital transformation.