Why companies outsource instead of using in-house digitalisation

Digital transformation isn’t a magic switch you can flip to upgrade your operations. It’s a complex process that starts by building an interconnected system and digitising valuable data. Some companies rely on in-house teams to get it done, but there are compelling reasons why companies outsource their digitisation.

Digitisation involves turning physical data into digital records, and consolidating them in a way that is both accessible and useful to your current team, and scalable for future purpose. Digitisation is the foundation for successful digital transformation, so it’s important to get it right the first time.

Should my company go in-house or outsource?

Before deciding whether to outsource or keep things in the company, you should weigh up the potential benefits and drawbacks of both options.

Digitising with the in-house team

Benefits of going in-house:

• Retain control and transparency. You have full visibility of how and what your own employees handle. A company has full control over the processes, tools, and systems used if they handle digitisation themselves. 

• Learn by doing. Ultimately, your team is going to have to learn to use the software and platforms you upload your data to. Digitising data yourself provides an opportunity for your team to familiarise themselves as they build the infrastructure.
  
  
• Adjust needs as you go. You can redefine the needs for quality, access and technology as they develop. By directly involving your employees, you get immediate feedback from in-house experts who know exactly what they need to perform their tasks.

Potential drawbacks:

• Costly investments. You need to either train your staff or hire qualified people – and then downsize or reskill once the project is done. Scanning equipment, data management software, and various technology also costs money, especially if you’re in a highly specialised field. And without the right tools and expertise, digitisation is extremely time-consuming. 

• Strain and drain on staff. Learning to use new programmes and adopting new processes is exhausting, and takes away time from essential roles. Running mass data extraction on technical drawings is a challenge even for your very best engineers. People will get burnt out, leading to inefficiencies in day-to-day work.
  
  
• Higher risk of errors. Companies usually won’t have experienced data scientists as part of their team, which means there is a greater risk of mistakes. More errors means you might have to start over and experience costly downtime.

Choosing digital outsourcing

Benefits of outsourcing digitisation: 

• Get expert results. Outsourcing your digitisation means working with people who have years working in digital transformation, data architecture, and integrating the digital tools and technologies you need. Experienced data specialists can do the job faster, and with greater accuracy.  

• Work leaner and smarter. You won’t have to train existing employees or hire new people. An outsourced team frees up your internal IT resources to accomplish tasks that drive your business forward, rather than getting tied up in scanning images and digitising documents. This also means you can keep to tighter timelines. 

• Improve compliance and security. The right digitisation provider meets international standards of security and data privacy, and will work with you to comply with strict governance policies. They’ll also have infrastructure in place to keep data secure.

Potential drawbacks:

• More pressure at the start. When hiring outsourcing providers, you need to clearly have specifications, goals, and scope of work defined at the beginning. You might need departments to coordinate and align before bringing the specialists in. 

• Less visibility and control. Some of the work might have to be done offsite, and you won’t be able to make day-to-day decisions on the digitisation. The people digitising the data won’t be the people who need to use it in the future, so you’ll have to rely on the quality of feedback your team gives them.
  
  
• Contracting costs. Even if you save money in the long run, outsourcing digitisation still comes with expenses. Some companies simply don’t have the budget to hire experts.

Is it worth investing in outsourcing?

If some people digitise their records with the tools they already have, why do so many companies outsource digitisation? 

The financial burden of the time, equipment and training needed to effectively digitise a company’s data ends up being a great deal more than the cost of hiring outsourced specialists. Outsourcing digitisation means getting access to a team that fills your company’s tech skills gap, and can complete the project more efficiently. 

More importantly, the right outsourced solution can do a lot more than helping your data go digital. They have the empathy and years of insights to help assess your company’s needs and objectives, and design a roadmap to help you achieve your goals, adopt new technologies faster, and stay ahead of the competition. 

Experienced digital transformation drivers can help make large-scale digitisation simpler. Here at Draga, we tackle large projects and turn them into fuel for your company’s digital transformation. Talk to our data specialists today and find out why companies outsource their digitisation projects with us.