This digital shift is crucial for mid-sized businesses to enhance their competitive edge, efficiency of operations, and customer experience. However, businesses often encounter obstacles such as limited resources, resistance to change, and integration complexities.
Offshoring can assist in overcoming these barriers by providing access to specialized skills and tech resources, enabling companies to execute digital plans efficiently while reducing costs and refocusing on core business functions. remote staffing
Barriers in Digital Transformation
Attempts at digital transformation encounter significant resource constraints and operational obstacles that hinder their success. Unclear strategic direction, inadequate training, and lack of sufficient investment often lead to underperformance.
Data shows high rates of failure: 70% of digital transformation projects don’t meet their goals, with 84% of companies failing to achieve their desired results.
Furthermore, a shocking sum of $2.3 trillion has been wasted globally on failed projects, highlighting the urgency for effective strategies.
The core issues stem from poor alignment with business goals, change resistance, and inadequate leadership support. Addressing these issues is vital for achieving digital transformation success.
What is Offshoring?
Moving business operations abroad is the practice of relocating business operations to another country, differing from outsourcing, which delegates specific tasks to external firms.
The key difference between offshoring and outsourcing is how they engage with the workforce: offshoring often maintains direct control over employees, while outsourcing relies on third-party companies for task completion.
Offshoring can alleviate workload by connecting with skilled professionals in offshore markets, addressing local talent shortages.
For instance, the talent shortage has increased dramatically, rising from 36% in 2014 to a notable 75% in 2024, rendering global hiring crucial 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.