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Digital Innovation & Outsourcing

By Kevin S.Parikh, Global CEO And & Senior Partner, And Avasant

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Kevin S.Parikh, Global CEO

The digital world is starting  to witness  a mind numbing explosion in innovation. Led by such innovation, smart and  intelligent systems continue to change the basic tenets of  human interaction. So much so that, there is a new partnership evolving between humans and these extraordinary  technology systems. The scale and impact of the innovative disruptions are creating  equal opportunities for all that go beyond just favoring the economically advantaged. To ride this wave of opportunities,  organizations are building solutions to attract and maximize the lifetime value for  customers. Disruptive technologies like   social, mobile, analytics, and cloud are revolutionizing the way companies are working and delivering services to their  customers. With the newfound technology  possibilities, most companies are planning  to move away from stopgap technology fixes to enterprise level transformation in their business processes.

 As the new technology tools and  platforms go mainstream, many  organizations lag behind due to lack of  in-house capabilities to take advantage of these technologies. Companies have   not always kept pace with the rate of   digital innovation and may not have the necessary internal skills for redesigning  processes, automating, implementing, and monitoring them. This presents a major capability challenge where companies are not able to take advantage of the digital opportunities available to them by the current technologies.

This is where outsourcing has a crucial  role to play in ensuring the success of  the digital narrative of a company. As businesses are setting new metrics of  success for themselves in the digital   economy, service providers are also  reinventing and repurposing their offerings  to help their clients meet the new challenges  Avasant of changing technologies, customer   expectations, and competitive forces. Through the development  of new capabilities in emerging technology areas, service providers   are now evolving from traditional   cost savings propositions to business  transformation offerings that help companies reach their strategic  goals. Service providers are helping  companies realize their business   outcomes through a multitude of  outsourcing engagements, such  as providing cloud-based service  delivery, analytics-based decisionmaking  capabilities, conducting  social outreach programs, or   developing mobility-enabled  workforce solutions.

 Additionally, they are enabling  companies to disaggregate the mutually re-enforcing technologies like social, mobile, analytics,  and cloud to implement them independently as per the maturity  levels and requirement of different  enterprises.

  As enterprises transition to the cloud, service providers are realigning their business models. Most service providers are offering a portfolio of cloud platforms and services that enable companies to build, manage,and consume workloads in ‘as-a-service’ environments.

Services around social media strategy, content creation, geo specific targeting, reputation  monitoring, community growth,  site audits, and ROI tracking are offered by service providers   to set up and create a two-way   conversation between the company  and its customers. There fore, they  are able to create opportunities for companies to connect with their  current and potential customers  through outsourced social media  engagements.

Managed mobility services are on  a rise with service providers offering  end-to-end solutions around device  deployment and logistics, expense   management and order provisioning,   managed Wi-Fi services, and help  desk and consulting services.  Operating system providers like Google, Apple, and Microsoft have   strengthened their mobile security  features for enterprise usage. This has made mobility outsourcing easier than ever before as service providers  have got rid of security concerns of  enterprises.

  Through research and analytics  outsourcing, service providers  have a suite of services from simple  data management to advanced and  predictive business intelligence  that result in increased operational  improvements, enhanced risk  management, cost optimization, and revenue enhancement.

 Automation is changing the face  of outsourcing in a big manner. With  advent of advanced text and voice  recognition analytic tools like IBM  Watson, service providers are moving away from resource based level 1 and level 2 support to automated,  intelligent, and interactive systems. While this means loss of opportunity  through depletion of low value   work at offshore locations, it also means shifting of high value work  to the locations that have greater  deal of context about their clients’  businesses. Service providers are  moving away from their age-old   resource-based delivery models to   capability development in high value  services.

 In his book ‘The Digital Age,’ Eric Schmidt estimates that over, five billion people will join the  Internet in the coming decade. How   will they change the future? What  will organizations do to reshape them selves around digital initiatives?  More importantly, for the outsourcing industry, and us how will the service  providers transform them selves to  provide services of the future? These  questions make the technology  industry an exciting place to be.  Despite the challenges, companies  are embracing digital as the source  for next generation of business   opportunities that have the ability to  create sustainable development and  positive impact for the world around  us. To stay ahead, the outsourcing community is positioning itself for a   dynamic transformation that is just  waiting around the corner.