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ISG: OUTSOURCING BECOMES A LEADER FOR DIGITALIZATION

07. November 2017, Editor: ISG /  Lenz Nölkel

Every year, the “ISG EMEA Sourcing Industry Conference 2017” offers top insights into the new trends and standards of digitization. Which trends you expect in 2018 and why digital, strategic outsourcing will be your next “must have”, read here.

“Scale – Innovate – Collaborate” 

The key issues of digitization are familiar to most companies – one speaks of technologies such as Big Data, Artificial Intelligence, Internet of Things and Co. Moreover, the fog covering the implementation methods of such technologies and the strategic issues slowly disappears. The digitalization is emerging and seems to be heading towards “outsourcing”. Entire departments are getting specialized in new digital topics, new subsidiaries are being founded, portfolios are being diversified or external service providers are getting involved.

 

A good example: Bosch – company known for machines, accessories and drills. But did you know that Bosch set up outsourced departments to, for example, to develop apps or autonomous vehicles?

Digitization is the goal, outsourcing is the way

The keyword here is everything-as-a-service – from hardware, through software which, in the future will come from the cloud as a subscription model, to more data-consuming topics such as artificial intelligence, analytics and process automation. It becomes clear that this is changing the processes in all industries. The cloud: More and more components of the in-house company processes are traded in the form of subscribed services.

 

What has been presented at EMEA SIC is likely to change the understanding of business processes in any industry. Everything becomes a service, more and more of them can be outsourced in a flexible and scalable way – at any time and size.

In other words, more and more processes, technologies and services along the supply chain of a company will have a potential to be outsourced in the future. In this way, the supply chain can grow immensely. At the same time, reaction times are sharply reduced, costs for warehousing and production are sinking, one department can successfully take over tasks of another.

 

Interestingly, individual technologies do not normally play a decisive role. Instead, the management of processes and resources must be completely redesigned.

 

Steve Hall, ISG’s Digital Advisory Services partner, have also partnered with EMEA SIC, and in his speech gave service providers some inspiring words and guided them in the right direction.

 

“Suppliers need to quickly focus on IaaS, SaaS, IoT, automation and AI approaches to meet the growing demand from European companies.” 

 

 

A disruptive company models exist “on paper only”

After all, when looking about 2 to 5 years into the future, outsourcing will change the entire supply chain structure of German companies and especially of medium-sized companies. Outsourcing could change the entire corporate landscape, and shift it away from material-based and service-oriented business models.

 

Airbnb has already proven that and made over $ 1.5 billion in sales last year alone. How? As one of the most successful “hotel chains”, without owning a single property. The real estates are being rented out as an outsourced service by private individuals as needed.

 

Or think of Apple. One would think that the iPhone and Co. have become vehicles for services in recent years. According to Statista, their annual revenue for services has meanwhile surpassed sales of the Mac and iPad.

iCloud, AppleTV, iOS, App Store – the home of Cupertino offers platforms for the distribution of services. The next step could be an augmented reality platform, which is intended to be available to private and business customers by 2020, reports the magazine Thinkmobiles.com.

 

IT becomes a tool for the strategic development of companies. Everything becomes a service, which supports the core business and managers – in nearly every situation and every topic.

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One example from Europe: especially in the management consulting, the topic “services” is in focus. Communication companies such as the Evernine Group in Munich offer digital strategies and concepts for outsourcing individual departments such as marketing and sales – depending on their needs, the services range from programming, web shops, advertising or creation of company magazines.

Volkswagen, Microsoft & Co.: the keynotes of the EMEA SIC 2017

Outsourcing will affect every area of ​​business, every department and each link along the supply chain. This became clear to the EMEA SIC. Executives from small, mid-size and large business were speakers at the conference and presented their approaches to services. Among others, Volkswagen, Trustlight, DLA Piper, Evernine and Microsoft were represented – to name a few.

Prime examples of business process outsourcing at the EMEA SIC Conference. Evernine Group shows how digital marketing and sales can be completely outsourced. The approach is called Qualified Lead Marketing – you can find more information here. (Source: Facebook)

Lectures, panel discussions and seminars dealing with the topic of digital services – the second day event was hosted by ISG consultants and focused on trends and customer behavior in European sub-regions. Four in-depth workshops on topics such as advanced analytics, cognitive computing, outsourcing and automation were the focal points of the conference.

 

At MyBusinessFuture you can get a short introduction to the topics of the Keynotes.

 

 

Source Cover Picture: Evernine Group

Quelle Titelbild: Evernine Group



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