This digital shift is crucial for mid-sized businesses to enhance competitiveness, efficiency of operations, and customer experience. However, businesses often encounter obstacles such as limited resources, change resistance, and integration complexities.
Offshoring can assist in overcoming these barriers by offering access to specialized skills and tech resources, enabling companies to execute digital plans more effectively with cost savings and focusing on primary objectives. remote staffing
Barriers in Digital Transformation
Digital transformation efforts encounter significant resource constraints and operational challenges that impede progress. A lack of clear strategy, insufficient 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 most of companies not achieving their intended outcomes.
In addition, a shocking $2.3 trillion has been wasted globally on failed projects, emphasizing the need for effective strategies.
The primary challenges arise due to misalignment with business objectives, resistance to change, 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 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 increased dramatically, rising from 36% in 2014 to a notable 75% in 2024, rendering global hiring crucial for remaining competitive.
This approach boosts efficiency and allows businesses to tap into specialized skills without the overhead of hiring and training locally, ultimately driving successful digital transformation efforts.