Real Australian story - an example of a company that outsourced and offshored their digital transformation project and failed publicly...
One example of a company that outsourced and offshored a digital transformation project and failed publicly is the Australian National Broadband Network (NBN) project. The project was intended to upgrade Australia's telecommunications infrastructure to provide high-speed internet access to all Australians.
In 2009, the government announced that the project would be delivered through a public-private partnership model, with the majority of the work outsourced to private companies, including overseas contractors. However, the project faced several challenges, including delays, cost overruns, and technical issues.
One of the major issues was the outsourcing and offshoring of key technical work to companies based in India and the Philippines. This led to communication and cultural challenges, which resulted in delays and quality issues in the rollout of the network. Additionally, the project was also plagued by political interference and changes in government policy.
In the end, the project failed to meet its original goals, and as a result of these challenges, the government had to step in and take control of the rollout to complete the project. The cost overruns and delays in the project ultimately led to a significant loss of public trust in the government and the companies involved in the project.
This example illustrates the importance of considering the potential risks and benefits of outsourcing and offshoring when embarking on a digital transformation project and the need to carefully manage such projects to avoid similar issues.
How can I get started on my organisations digital transformation journey?
Look local for the starting point. It can be more beneficial to have a local team in charge of the digital transformation, as they will have a deeper understanding of the company's culture, industry, and market.
They will also be better placed to make decisions that align with the company's objectives, and manage any challenges that arise during the transformation process.
Should you look later to take advantage of a hybrid workforce, your local team can continue to manage the delivery of services required. Not sure what is next? Talk to us.