According to research from IDC, two-thirds of CEOs from global companies aim to improve customer experience by shifting from offline to digital strategies by the end of 2019. This shift is happening because to stay competitive in today’s digital world, businesses need to continually adjust the way they operate.
Many companies progress towards digital transformation to maximize customer engagement. At its core, it’s about providing people with meaningful digital experiences.
Software outsourcing enables digital transformation in the following ways:
- Providing access to top tech talent to close skills gaps
- Providing digital insights through collaboration
- Shortening the time to market for new software
- Integrating emerging technologies to capture customer data
- Improving data privacy and security
Let’s explore each of these benefits in more detail:
Bridging the Digital Skills Gap to Meet Demand
According to a survey conducted by TekSystems, 81% of IT leaders find it moderately to extremely difficult to find quality candidates. Software outsourcing helps companies negotiate talent shortages by providing access to the best developers in the world.
For example, many companies in the U.S. outsource their software development to regions like Latin America, where digital skills are in abundance.
According to Glassdoor, the average interview process in the tech industry lasts for 25 days – that’s almost one month dedicated to hiring a single employee. With software outsourcing, there are no long interview processes to find the right candidate. An experienced outsourcing company will provide the appropriate expertise immediately, so that work can begin on projects straight away.
Outsourcing also eliminates the associated costs of hiring full-time staff. Overheads like staff training, salaries, bonuses, and pensions don’t exist when working with a contracted development team. With software outsourcing, companies only pay for the expertise they need.
Providing Digital Insights
Collaborating with a software outsourcing partner can unveil valuable digital insights that help companies achieve their digital transition.
A diligent software partner will take the time to understand the underlying principles of a company’s digital strategy. They will assist in creating a framework that considers all possible risks and implements the necessary workflows to reduce the impact of potential issues.
Experienced software development teams will implement agile methodologies to validate ideas and create prototypes. Combining analytical thought with creative techniques enables outsourcing companies to challenge assumptions and identify the quickest and leanest way of developing software products.
Faster Time-to-Market for New Products
The speed at which new products are delivered is a key element of any digital transformation process. Whether developing customized software, cloud solutions, or mobile and web applications, a software outsourcing company will already have the expertise required to execute the project effectively.
With robust workflows in place, they can ensure that products are delivered to market faster than they would if handled by an internal team.
A good outsourcing provider will use project management tools like Basecamp, Trello and Jira to ensure that responsibilities are met and project milestones are achieved.
Integration with Emerging Technologies
Keeping track of the latest innovations is one thing, but having the knowledge and expertise to make them work successfully for a business is another.
An experienced outsourcing team will incorporate emerging technologies into existing business structures through careful planning. If required, they can handle every stage of the development lifecycle from prototyping to maintenance and testing.
According to Ping Identity’s Digital Transformation report, 86% of businesses believe that emerging technologies like cloud computing are critical to digital transformation. The widespread adoption of the cloud, Artificial Intelligence, blockchain and the Internet of Things is enhancing business activities in a range of industries.
Customer management, business automation and cybersecurity practices can all benefit from the increased productivity that these technologies afford.
Improved Data Privacy and Security
Ping Identity’s report also reveals that 91% of companies believe security is very important to their company’s success in digital transformation.
Given that cybercrime is set to cost companies $5.2 trillion over the next five years, the need for solid data privacy and security practices are essential.
A report from Microsoft confirms that 70% of small businesses would prefer to pay for support in matters of cybersecurity than do it themselves. As an increasing number of companies turn to outsourcing providers to handle their security, the need to be fully compliant with data privacy and security regulations is essential.
As the demand for data loss prevention and data security automation continues to rise, outsourcing providers are now obligated to carry out regular security audits. This, in turn, provides companies with insightful data that can be used to meet new security standards.
In summary, software outsourcing provides companies with immediate access to top developer talent and eliminates the associated costs of hiring full-time staff. Third party collaboration can unveil valuable digital insights that help companies plan their digital transformation strategy. By implementing robust workflows, outsourcing providers can deliver projects faster than internal teams.
Through careful planning, emerging technologies can enhance everyday business activities and facilitate future growth. Ever evolving security standards require software outsourcing companies to be fully compliant with security regulations, which ensures businesses are well protected against cybercrime.