What do you do if your IT Outsourcing business is struggling to stand out from competitors?

In today's era where IT outsourcing is at its growth, the reality on the other is, the competition is more tougher. The better way to stay ahead of competition is to narrow down your target audience and get mastery in terms of services, support, in-and-outs with that particular domain. Not everybody can be your customer, you will have to segment your target audience so that you can provide them something what you can, and others can't. You should become a diamond that cannot be easily found. Sticking to the domain and your target audience helps you become unique in your value proposition and that's where you can bit the competition easily.

You need to figure out where you want to play, i.e. low cost delivery or hard to find skills. Low cost will require scale and off-shore delivery capability, you will be up against the big boys and margins will be tight. Providing a "shared services outsource model" for new or hard to find skills such as AI or specialized SaaS systems could provide differentiation and command a premium.

In IT outsourcing, everyone seems to offer the same thing. We struggled until we highlighted our team's expertise in building mobile apps for logistics, manufacturing, education, and healthcare. Plus some extra effort in marketing and, suddenly, clients noticed.

The technology is evolving at far high speed. If we do not upgrade ourselves with the latest techniques and knowledge, then it is too difficult to survive. All the competitors in the field are making progress, adapting to new changes, and evolving more and more and so, to stand in the competition - it is crucial to go parallel with the flow. It is not to beat the competition but to stand on. Another important factor is creative thinking, and attitude to understand and solve new problems and challenges by making better use of available AI technology and tools.

The fluctuations of up-and-downs in IT outsourcing business are higher as compared to any other domain, due to constant evolution in the technologies. Also, major clients in IT outsourcing are B2B in nature where long-term relationships are crucial for consistent income and services. I have experienced many a time when the sales are down, the past clients have saved us, not just with sustainability but with profitability. So in B2B business, once clients get in, nurture them by providing high-value, quality support so they don't go elsewhere. This approach will also help you relax on sales tension, especially when the market is not in your favour.

Foster a culture of collaborative ideation where clients are encouraged to contribute ideas for enhancing and leveraging the UVP. This can lead to innovative solutions and strategies that further differentiate your business in the market. Share client success stories that highlight how your UVP has benefited This not only serves as social proof but also reinforces the value of your unique offerings to both internal team members and external stakeholders. Case study's that can be marketed in publications can set you apart from those that do not have client engagement or feedback. Often people are more willing to take a risk with a new supplier if they have evidence of previous work and trust the brand.

Clients don't just want someone to code their app, they want a partner. Someone who understands their needs and goes above and beyond. Be responsive, proactive, and always willing to help. Small things like keeping them updated and celebrating their wins go a long way.

Ask yourself, who can become your customer? If the answer is "anybody" - then there's an urgent need for improvement. Everybody cannot be your customer, you cannot serve everybody. You can serve only those whose needs, desires, and problems you can solve effectively and they have value for the same. This will inspire you to segment your target audience first, ie. the right product to the right people. Without doing marketing, you can't generate leads and without leads, you can't beat the competition. The more people you reach, the more you can expect. You will have to find out where your target audience can be found and increase the quantity of your marketing efforts that you can maintain consistently.

It is imperative to return to the drawing board and for leaders to discern the underlying causes of their potential irrelevance. They must strive to comprehend the challenges faced by their users and the problems they seek to address. Companies that consistently adapt to the evolving business landscape and demonstrate a proactive stance toward technological advancements maintain their competitive edge and are the favored choice. Customers consistently seek enhanced experiences, greater efficiency, and accelerated solutions. Hence, it is crucial that your offerings provide tangible value to the processes and operations of businesses, evolving continuously with emerging technologies. Although not easy to do but the only choice.