Acceleration of Outsourcing in the Digital Transformation Space
A closer look at one aspect of Keypoint Intelligence’s Primary Research study
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Businesses in the digital age are continuously seeking ways to modernize and better their operations to remain ahead of the competition. Digital transformation (DX) is the process of applying technology to improve the way a business runs. This can range from introducing new technologies to reimagining how employees get their work done.
Navigating conditions for business growth is demanding. Coming on the heels of huge disruptions that forced organizations to make quick IT decisions and operational adjustments are newly formed plans for a purposeful future. All in the service of a better way to measure, manage, support, and secure people, spaces, endpoints, and infrastructure.
Outsourcing has become a valuable and useful tool in the quest for a more modern digital business. Organizations can free up resources to focus on other areas by reassigning identified infrastructure, application, operations, and processes. This can help companies to accelerate their DX initiatives and meet their objectives rapidly.
In Keypoint Intelligence’s 2023 IT Decision Maker Primary Research study, we undertook an examination of progress businesses have made on their digital transformation journey and how that progress will impact vendors and technology providers. Further, this Keypoint Infographic illustrates where organizations contract with an outside provider to take over at least a portion of their IT needs, have become a key offering for office equipment dealers looking to diversify beyond print. The survey targeted IT decision makers at SMBs (i.e., 50-499 employees). To qualify for the study, respondents had to be decision makers who influence purchase decisions related to business process/workflow solutions, print/scan infrastructure, or managed IT services (MITS). In total, we surveyed 300 US-based respondents from a range of industries.
We discovered that business priorities for the next two years were centered on migrating to cloud-based solutions and infrastructure, improving data and document security, and adopting intelligent document processing solutions. Further, we discovered that most respondents would be looking to an outside vendor for help with these priorities and initiatives:
- 90% of IT decision makers will outsource “Migrating to cloud-based solutions and infrastructure”
- 90% of IT decision makers will outsource “Improving data/document security”
- 86% of IT decision makers will outsource “Adopting Intelligent Document Processing (IDP) solutions”
Businesses use outsourcing to free up resources to focus on their core strengths and services by selecting a partner to manage specific applications, processes, and operations. This aids in increasing business and operational efficiency, and customer experience. Furthermore, outsourcing can assist in lowering the risk of failure associated with digital transformation. Choosing an experienced and authorized partner provider supports the execution and maintenance of complex projects.
Naturally, there are certain obstacles connected with outsourcing for digital transformation, but a significant portion of IT projects and support are expected to be outsourced, including chatbots, managed cloud infrastructure, and voice solutions. Meanwhile, the top IT areas that will be kept in-house are management of network and on-premises infrastructure, procurement of IT equipment, and mobile device management.
Keypoint Intelligence Opinion
Despite some challenges, outsourcing will be a valuable tool for digital transformation now and in the future. We suggest clearly understanding the benefits and challenges with DX while guiding businesses to make informed decisions about whether to outsource their digital transformation efforts.
As trusted advisors, suggest that buyers also do the homework. The importance of being well informed to select a reputable provider is invaluable. There are many different outsourcing providers available, so it is important for end buyers to compare solutions, services, and costs. Further, once the agreement is forged, work with buyers to provide clear definitions of requirements and expectations—these are vital to success. And finally, buyers and vendors must stay engaged throughout the project to ensure that there are few surprises, that the project stays on track, and that the provider is meeting expectations.
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