Digital transformation is essential for medium-sized companies to enhance competitiveness, operational efficiency, and user satisfaction. However, companies often face challenges such as limited resources, change resistance, and the complexity of technology integration.
Moving operations overseas can help alleviate these issues by offering access to expertise and technologies, allowing businesses to execute digital plans more effectively with cost savings and focusing on core business functions. remote staff
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 insufficient investment in time and resources often result in poor performance.
Statistics reveal high rates of failure: a majority of digital transformation projects fail, with most of companies not achieving their desired results.
Furthermore, a staggering sum of $2.3 trillion has been wasted globally on failed projects, emphasizing the need for effective strategies.
The core issues arise due to poor alignment with business goals, change resistance, and lack of leadership buy-in. 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 main distinction between offshoring and outsourcing is how they engage with the workforce: offshoring usually retains direct employee management, 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 overseas regions, to overcome talent gaps locally.
For instance, the skilled worker shortage has surged from 36% in 2014 to 75% in 2024, making global recruitment essential for remaining competitive.
This approach boosts efficiency and enables companies to leverage specialized expertise without the overhead of hiring and training locally, ultimately driving effective digital transformation.