IT outsourcing: digital resonance key in automation and cybersecurity

Sep 29, 2020

IT outsourcing: digital resonance key in automation and cybersecurity

Sep 29, 2020

“Digital resonance is an important factor when choosing IT-based outsourcing services.” This is the main takeaway in one of our latest studies for CBI on outsourcing.

Be excellent in your product or service offering, have the best website, and visit all relevant trade fairs. This has been the success recipe for IT-based outsourcing providers for a long time. But things have changed. Digital resonance is now becoming the most important factor when choosing an outsourcing partner.

What is digital resonance?

Digital resonance looks at how companies handle the effects of digital transformation, in particular automation and cybersecurity. Digital resonance is informed by metrics like the digital skills of a country’s workforce, legal and cybersecurity, corporate investment in startups, and digital innovation outputs.

Why is digital resonance so important?

A few years ago, automation and cybersecurity concerns affected the Information Technology Outsourcing (ITO) industry and the Business Process Outsourcing (BPO) industry. Companies are now looking for a workforce with the skills to manage automation and cybersecurity. They are no longer looking for routine services with low added value for IT-based outsourcing projects.

Companies are relying more and more on outsourcing and automation. This makes the systems more vulnerable. The digital resonance of IT-based outsourcing providers is thus very important. Many companies outsource vital functions or share sensitive information with their service providers. Yet, they do not understand the process enough to understand the risks.

Global Services Location Index

Kearney is a global management consulting firm. The researchers there recognize how important digital resonance is. They have thus added it to their yearly Global Services Location Index (GSLI) as one of the factors. They now measure the competitiveness of an outsourcing destination based on:

  1. how attractive it is financially;
  2. its people skills and availability;
  3. business environment; and
  4. digital resonance.

The index is used by companies to understand and compare potential outsourcing locations. Outsourcing service providers can use the index to see how well they are doing, compared to other destinations, and compared to other years.

So, if you are hoping to score better on the GSLI next year, make sure you look at your company’s digital resonance!

This article has been written by Globally Cool on behalf of CBI for the CBI Outsourcing (ITO/BPO) series of Market Intelligence studies.

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