Digital transformation is crucial for medium-sized companies to enhance competitiveness, efficiency of operations, and customer experience. However, businesses often encounter obstacles such as limited resources, change resistance, and integration complexities.
Moving operations overseas can help alleviate these issues by offering 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 solutions
Digital Transformation's Stumbling Blocks
Attempts at digital transformation face significant resource limitations and operational obstacles that hinder their success. Unclear strategic direction, inadequate training, and insufficient investment in time and resources often result in poor performance.
Statistics reveal alarming failure rates: 70% of digital transformation projects don’t meet their goals, with 84% of companies not achieving their desired results.
Furthermore, a staggering sum of $2.3 trillion has been lost worldwide on unsuccessful initiatives, highlighting the urgency for better strategies.
The primary challenges stem from misalignment with business objectives, change resistance, and inadequate leadership support. Addressing these issues is vital for achieving digital transformation success.
What is Offshoring?
Offshoring is the practice of moving operations to a different country, while outsourcing involves contracting specific tasks to external providers.
The key difference 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 alleviate workload by providing access to a vast pool of skilled professionals in offshore markets, to overcome talent gaps locally.
For instance, the skilled worker shortage has increased dramatically, rising from 36% in 2014 to a notable 75% in 2024, making global recruitment essential for maintaining competitiveness.
This strategic shift enhances efficiency and enables companies to leverage specialized expertise without local hiring and training costs, thereby driving effective digital transformation.