At the most recent Tholons’ worldwide survey for Top 100 Outsourcing Destinations, Metro Manila and five other business hubs’ ranks dropped since they seem to not meet the new metrics with regards to digital innovation.
As per IP Converge Data Services, Inc. (IPC), the results illustrate how digital transformation is a fundamental component in business growth, and that this should serve as a caveat for organizations who are yet to embrace the digital mindset.
“Business technology has evolved to the point that it is now recognized as a requirement for any company as it provides the capabilities needed to remain relevant and competitive in today’s digital age,“ Dave De Leon, IPC Chief Operating Officer (COO), stated.
Tholons decided to incorporate digital innovation as a major factor in this year’s rankings since digital transformation is gravely affecting the outsourcing industry. The study also notes that the fast-paced adoption of digital technology in the workplace is due to the clients of today are requesting for more innovative and transformational services, and that businesses who are adamant to change their business models will have a hard time to deliver.
Startups and small and medium businesses (SMBs) may find going digital to be intimidating and overwhelming since it requires adequate skill sets, process, and technologies. However, this is not really the case, studies and reports have shown that the pros heavily outweigh the cons. As per McKinsey research, it is found that business to business (B2B) companies that make us of digital technology were to increase their revenue compound annual growth rate (CAGR) and shareholder returns by 8%, five times greater than their peers.
While there are a lot of benefits, IPC stresses that going digital could be taxing to businesses since they may not have or meet the major prerequisites, most common of which are adequate skill sets, process, and technologies.
As per IPC’s Director for Marketing & Digital Innovation, Niño Valmonte, digital transformation does not simply refer to the utilization of digital tools and media in an organization. It is an initiative that needs to be tackled holistically, taking into account the people, processes, and technologies as the major elements of the digital transformation leading to business growth and success.
Having started six years ago, Coefficients, a business process outsourcing company in Lucena City, Philippines, has undergone a lot of changes since its humble beginnings. Adapting to technological change has been one of their strengths. Their customer support, digital marketing, and advertising department have grown since. The company now offers a variety of services ranging from business process, knowledge process, and just recently, legal process outsourcing.
All factors considered, the road to total digital transformation may seem overwhelming, particularly for big organizations. IPC stated that is vital for businesses to choose the right partner to collaborate with. Having the access to up-and-coming technologies and best practices in operational efficacy and change management should be on the on top of the list of the selection process. The partnership set up is more logical and practical for local businesses for it will help them easily cope with digital innovation and help them thrive, it may even up their status in the international arena, as made obvious in Tholons research.
“Working hand in hand with the right partner can help businesses implement a digital transformation strategy at a faster rate and with cost-efficiency. It also gives them a competitive edge by providing the expertise, technology, and practices needed to spur productivity and growth, and this journey can be difficult to embark on especially if an organization’s expertise is not in the area of IT,” Valmonte stated.
To support this statement, de Leon stated that should a company decide to undergo digital transformation, they will fully enjoy the fruits of their investments in technology.
True, not all companies are open to change. Most want to stay in their comfort zone, doing so however, will make their progress stagnant. It may be taxing initially but it will all be worth it. Adaptation is key.