Companies are using digital transformation to redefine industries by better meeting customer needs. Outsourcing functions must adopt this approach, focusing on solving customer pain points through end-to-end transformation rather than just cost cuts. To remain relevant, outsourcing must use a consulting approach based on flexible sourcing models, embrace digital technologies, and invest in reskilling workers for more cognitive roles and transformation skills.

1. Outsourcing
Resurrected
using Digital
Transformation

2. Companies like Tesla, Uber and Airbnb are redefining the old industry through
innovative solutions that’s making an existing value offering
better, cheaper and faster
What are these companies doing differently?
"In a lot of ways, its not the money that allows you to do new things. It's the growth and the ability
to find things that people want and to use your creativity to target those" - Travis Kalanick
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3. They have the ability to clearly identify customer pain points and come up with
creative solutions which radically transform their customer lives..
Uber for instance, has de-monopolized the taxi cab service and reinvented it in every way.
Their customers are not just the riders, but also the drivers.
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Customer Value Proposition

4. What does “enhancing customer
experience” mean for the outsourcing
function, is it first time right, transition cost
per resource or the voice of the customer ?
While these are important outcomes of performance, however, the focus should be
to solve for the customer pain points
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What does the customer care for?

5. Outsourcing is not “the” solution, it’s one of the levers of the solution
Our customers are more and more looking to partner with us on “end-to-end
transformation” support Their ask is simple - simplify, eliminate low-end work and
drive radical business outcomes
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Customers are looking for End-to-End
Transformation Support

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Here is the “Mantra” for survival in this fiercely
competitive environment and the three ways a
company’s outsourcing function can stay relevant.

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First, you need to wear the “consulting hat” and use a transformation-led
approach backed by a differentiating value delivery system, as opposed to
traditional “transitions”.
Customers are also looking for thought leadership
around flexible sourcing models (consortium sourcing,
software-as-a-service), pricing models (Time and
material vs. outcome-based), target operating models
(right-shoring vs. offshoring) and functional blueprints
along with implied change management support.
The transformation value levers ranges from deep
domain expertise, design thinking, best-in-class
transitions to innovative digital interventions and big
data analytics
"Think big and don't listen to people who tell you it can't be done. Life's too short to think small" - Tim Ferriss

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Second, you need to embrace digital in all aspects of your
lifestyle, be it work or personal
In a world where cutting edge technologies like Mobility, AI
(Artificial intelligence), NLP (Natural Language Processing),
NLG (Natural Language Generation), Machine Learning, IOT
(Internet of things) and Robotics are driving business
disruptions, while driverless cars, drones, virtual reality and
3D printing are reshaping our lives, we are essentially fooling
ourselves if we chose to ignore digital
Our solutions need to show this digital journey on the value continuum from evolving to mature, with a
strategy which maximizes the customer’s return on investment.

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Robots will take over most of the low to
medium-complex activities with humans
required primarily for more decision making,
business partnering and high-end
cognitive roles
The roles of the future would be more digital than operational

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Further, “Agility” is the key to success. Using the standard cookie-cutter
approach to outsourcing with a six to nine months transition timeline will be
historic in the near future.
Companies need to reimagine there
transition methodology and drive
innovations to dramatically reduce the
overall timelines, thereby reducing
overall cost, flight and attrition risks
“If the rate of change on the outside exceeds the rate of change on the inside, the end is near" – Jack Welch

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Third, you need to invest in up-skilling your resources and increasing their
transformation and digital quotient.
Employees need a paradigm shift from an inward looking
value delivery system to an outside-in customer value
proposition - “It’s not about showcasing the good things
that you do, but the good things that you can do for your
customer”. Exposure to application of digital assets to
various business verticals and horizontals, orientation with
social media (LinkedIn, Twitter) and an understanding of
the internet of things will be some mandatory skills
required to succeed in the future
“Stay Foolish, Stay Hungry” – Steve Jobs

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Adapting to the constant change
in the macro, political and
regulatory environment and your
resilience to keep pace with
digital, will be instrumental in
shaping your future. So act now !

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References: Pictures from Google “images”
Thank You