Tholons released its latest Top 100 Outsourcing Destinations global survey, with five local business hubs, including Metro Manila, demoted from last year as they fell short in new measures related to digital innovation. For IPC (IP Converge Data Services), the results only signify how digital transformation is a vital element in business growth, and that it should serve as a wakeup call for organizations who have not yet embraced a 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,“ said IPC COO Dave De Leon.
Tholons decided to add digital innovation as a key parameter in this year’s rankings as a result of digital transformation disrupting the global outsourcing industry. The survey also notes that the rapid adoption of digital solutions in the workplace is the result of today’s clients asking for more transformational and innovative services, and that those who stick with traditional business models will be challenged to deliver.
With the adequate skills, process, and technology required, the decision to go digital at first appears to be overwhelming, especially to startups and SMBs (small and medium businesses). This however has proven to be false and reports have revealed that the benefits heavily outweigh the risks. A Mckinsey study revealed that B2B companies that utilize digital technology generate 8 percent more shareholder returns and a revenue compound annual growth rate (CAGR) that is five times greater than their peers.
Despite the benefits however, IPC notes that the decision to go digital can be challenging due to several key factors to consider, with the most common being the adequate skills, process, and technology required. For Niño Valmonte, IPC’s director for marketing and digital innovation, this is because digital transformation does not merely pertain to the use of digital tools in an organization, but is an initiative that should be approached holistically, taking into consideration people, processes, and technologies as critical components of the digital pivot towards business success.
With all these factors to consider, the road to complete digital transformation may appear to be overwhelming, especially for large organizations. According to IPC, it is important for businesses to select the right partner to work with. Access to emerging technologies and global best practices in operational efficiency and change management are paramount in this selection process. The partnership model is a viable method that local companies can turn to, in order to flourish and even improve their status in the international stage, as evident in the Tholons survey.
“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,” said Valmonte.
De Leon adds that this is a tried-and-true decision where a company can fully enjoy the benefits of its investments in technology. “Teaming up with a digital partner who specializes in technology minimizes the risks involved when facing it alone as they adhere to the best and up-to-date practices.”
As part of its efforts to share and promote the best business IT practices and trends, IPC is currently bringing digital transformation directly to Metro Manila’s business hubs in #DiscoverDigital, a campaign that consists of various activities and seminars facilitated by experts including seminars with the overall objective of empowering Filipino enterprises and organizations, whether large or SME, to think out of the box and make the digital pivot towards operational efficiency, profitability and business success.