In a world of digital disruption, startup companies and fast-growth SMEs realize that it is difficult to innovate without help from outsourcing.
To meet today’s ever-shortening innovation cycle requires access to cutting-edge talent and thinking. Thus, companies turn to collaborative outsourcing as an engine for change. Led by cloud technologies and automation, collaborative outsourcing expedites innovation and collaboration with strategic partners to secure the skills, assets, and the support they need to create a robust delivery eco-system.
According to Clutch, more than 52% out of 529 small business owners and managers planned to outsource a business process in 2019 and the number is most likely to grow in 2020. Similarly, spending on IT services outsourcing is estimated to reach 1,088 billion USD in the year 2020 while outsourcing of IT service is expected to grow at a CAGR of 6% and will reach $531 Billion by 2022.
Unlike the traditional outsourcing model that focused on work transfer, the collaborative partnership focuses on innovation and collaboration with strategic partners and alliances. This relationship makes SMEs more agile, tech-enabled, and future-focused as they scale, grow, and evolve to keep up with the market.
Following are the major benefits that collaborative outsourcing offers:
1. Drives Competitive Advantage
Collaborative outsourcing provides access to emerging technologies such as cloud and robotic process automation (RPA) to accelerate innovation, speed-to-market, enhance user experience and improve performance. Collaborative outsourcing, when executed well, can deliver a competitive advantage by making the organization more agile, efficient, and effective. According to a Deloitte survey, while 78% of respondents say they feel positive about their outsourcing relationship with other companies, 93% of respondent organizations are considering embracing technologies such as cloud and robotic process automation (RPA) through collaborative outsourcing.
2. Helps Innovate Faster
Alongside competitive advantage, collaborative outsourcing drives top-line growth by improving business performance through more agile and effective operations. The access to cutting-edge talent, regular reporting, and brainstorming sessions for cross-pollination of insights help reduce cycle times, improve visibility to bottlenecks, and improve delivery output. Moreover, regular meetings foster better camaraderie and better communication among delivery teams, thus transforming outsourcing into a value-creating global collaboration that fosters faster innovation.
3. Enables Focus on Growth Strategy
Managing your small business can take all your time, leaving little to focus on growth strategy. Collaborative outsourcing leaves time on your hands to focus on what is truly important. With access to top industry specialists at a fraction of the cost of hiring them full-time, you can ramp up projects quickly and better focus your attention and resources on strengthening core functions to grow faster and more profitably.
4. Improves Operational Efficiency
In a collaborative partnership model, a collection of delivery communities centered on each business process governs the relationships and deliverables. These delivery communities have clear roles, responsibilities, and territories, which facilitate prioritization and distribution of work, thereby improving productivity as well as ensuring seamless, transparent communication. This also translates into a common understanding of quality and performance between development and testing teams while also improving the success rate of production rollouts.
5. Ensures Implementation Standards and Compliance Across Projects
When you work with a great software development team, they adhere to standards to ensure quality, maintain 100% regulatory compliance, and give you better coverage against a cybersecurity breach. Because outsourcing partners work with many companies within an industry on a variety of projects, they can leverage their collective experience to interject critical expertise, experience, and skills to overcome otherwise difficult challenges, as well as implement architecture standards and enable compliance across projects.
Collaborative outsourcing is an opportunity to transform your business, but you need to be thoughtful and make a careful evaluation to make the right choice. At Analytix, we adopt a ‘transformation by engineering’ methodology for continuous transformation. Our engineering-led approach, transparent and collaborative engagement integrates efficiency, knowledge and people to optimize results.