Embracing Operate services to move beyond cost savings and generate value.
Can traditional outsourcing still be a go-to strategy for companies? Studies show that with conventional outsourcing services, companies can face significant challenges to keep up with the evolving technologies reshaping businesses and the heightened competition in the tech markets [1]. This calls for next-generation managed services, also known as operate services. This new service model helps organizations enhance capabilities and scale capacity (Human + AI) as and when needed.
Limitations of Traditional Outsourcing
Traditional outsourcing was once hailed as a cost-saving remedy; however, it has its fair share of limitations in addressing the complexities of the contemporary business landscape. The need for a paradigm shift is evident with the emergence of new technologies, talent shortages, greater emphasis on risk mitigation, and evolving regulatory requirements. Additionally, it is argued that traditional outsourcing is focused on cost reduction rather than adding strategic value due to its transactional nature, which could result in missed opportunities for innovation and business transformation.
Operate Services as a Strategic Partner
Moving beyond conventional outsourcing models, next-gen managed services or operate services present a way of building strategic partnerships with a comprehensive approach, aligning seamlessly with the organizations’ objectives and operations. They are built on a deep business understanding, creating a collaborative environment to provide strategic guidance and expertise to clients. While saving costs through workflow optimization and resource allocation as needed, operate services also drive value creation by leveraging advanced technologies like platform management, Analytics-as-a-Service, and business process enablement to actively participate in strategic decision-making, drive innovation, and ensure adaptability.
Maximizing Business Growth
67% of executives responded that their budget for operate services has increased and are seeking MSPs providing reliable solutions to increase their companies' efficiency through innovation, with an emphasis on automation and orchestration of business processes in a cost-effective manner [2]. As a strategic partner, operate services provider can serve as an innovation partner for businesses by offering a dynamic ecosystem fostering creativity, continuous improvement, and technological advancements. Companies can stay at the forefront of technology advancements and industry trends with access to advanced technologies and resources, which can enable them to implement innovative solutions and navigate challenges with agility.
The rapid advancements in digital technologies are altering industries and business operations. Embracing operate services as a strategic partner and moving beyond the limitations of traditional outsourcing is a must to gain a competitive advantage and generate valuable growth.
[1] Next-Generation Managed Services: Journey from Cost to Value. (2023). https://hbr.org/resources/pdfs/comm/deloitte/Next-GenerationManagedServices.pdf
[2] Global outsourcing survey. (2022). https://www2.deloitte.com/us/en/pages/operations/articles/global-outsourcing-survey.html
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