Business transformation services: The hidden value in outsourcing

Outsourcing has long been associated with efficiency and cost reduction. For many companies, the model has meant moving back-office functions offshore to achieve lower operating expenses. 

But outsourcing is evolving. Increasingly, forward-thinking providers are offering business transformation services — capabilities that go far beyond staffing or transactional work.

As Jan-Hendri “JT” Tromp, International Business Development Executive of SoluGrowth, explains in this in the 552nd episode of the Outsource Accelerator Podcast. 

“Anything that’s got a process, that is our core. We will look at it from a people perspective, from a technology perspective, and from a process maturity perspective.” 

In this article, we’ll explore business transformation services and how it reframes outsourcing as not just a way to cut costs but as a driver of long-term growth, innovation, and resilience.

What are business transformation services? 

Business transformation services encompass a set of solutions designed to optimize how organizations operate. These services typically include advisory work, process redesign, technology implementation, and project management. 

Rather than just “taking over” an existing process, the outsourcing provider works with the client to improve, modernize, and align operations with strategic goals.

For SoluGrowth, this was a natural evolution after its management buyout from Deloitte. 

“Because we didn’t have that consulting leg anymore, we created what we call business transformation services, which is typically your advisory side and your project sides of the business,” JT explains.

This consulting-oriented layer allows outsourcing providers to address not only the “how” of delivery, but also the “why” of business operations. It ensures that outsourced functions add measurable value to the client’s bigger picture.

The limits of traditional outsourcing

Traditional outsourcing has undeniable benefits: reduced costs, scalable staffing, and access to specialized skills. Yet its limits are increasingly clear.

Companies that approach outsourcing purely as a cost-saving tactic often view providers as little more than staffing vendors. 

As JT notes, “The biggest pushback that you get being a company that’s predominantly focusing on outsourcing is that companies believe that’s all you can do.”

This mindset creates challenges. Without a transformation lens, outsourcing can become a “lift-and-shift” exercise — replicating inefficiencies rather than solving them. 

Clients may miss opportunities to digitize, streamline, or redesign processes, while providers remain boxed into low-margin execution roles.

The hidden value of business transformation services

The true potential of outsourcing comes to light when providers go beyond execution and embrace transformation. Business transformation services uncover value that traditional outsourcing models often miss.

1. Process optimization

One of the biggest advantages is the ability to identify inefficiencies and standardize workflows. With experience across multiple industries, providers bring proven methods to streamline operations. 

As JT explains, “Even our mature clients, we managed to find more wins, quick wins for them. Just because it’s our core business, we know where to look.” 

This fresh perspective often reveals improvements clients didn’t realize were possible.

2. Technology enablement

Transformation services also help organizations modernize with automation, AI, and digital tools. This not only increases efficiency but also frees up resources for higher-value work. 

JT points out that outsourcing’s cost savings can be redirected to technology: offshoring “can be utilized to invest into technology,” giving clients an opportunity to upgrade back-office functions without extra budget requests.

3. Change management

Adopting new processes and systems also requires cultural adaptation. Transformation providers support this transition through structured change management, ensuring teams embrace rather than resist change. 

JT highlights the importance of culture. 

“It’s all about the culture of a company… if you have the right company culture, people will stick around.” The same holds true when guiding clients through operational change.

4. Strategic advisory

Transformation services also reposition outsourcing providers as partners, not vendors. Rather than delivering a narrow service, they collaborate on the client’s broader goals. 

“It’s very important to be strategically aligned to your clients because the more you understand their business strategy, where they want to go, what they wanna do, what the ambitions are, the better for you to actually [solve problems] with them,” JT explains.

5. Sustainable growth

The ultimate outcome is resilience and competitiveness. By combining optimized processes, smart technology, cultural alignment, and strategic guidance, outsourcing becomes a driver of sustainable growth. 

As JT puts it, the focus is always to “make a difference in the lives of our companies and our clients because that becomes our next reference for the next clients.”

Business transformation services reveal the hidden value of outsourcing. Not just lower costs today, but stronger, more scalable businesses for tomorrow.

Why business transformation services matter now

Today’s business environment makes transformation services not just valuable, but essential.

Global organizations face increasing complexity — managing multi-country operations, integrating digital technologies, and responding to rising customer expectations. At the same time, disruptive trends such as automation and AI are reshaping how work gets done.

JT cautions that many companies are eager to leap ahead with technology but often lack the foundation. 

“They immediately go into AI, blockchain, blah, blah, blah. And once you start to unpack it, you realize that they don’t have mature processes. It’s paper based. They’ve got cultural issues. Their technology is not even mapped out properly.”

This gap creates both risk and opportunity. Outsourcing providers with strong business transformation services can help clients build the necessary maturity, laying the groundwork for meaningful digital adoption. 

Providers also bring cross-industry experience, having optimized processes for multiple clients, and can transfer these insights to new engagements.

At the same time, companies are under pressure to maximize value from every dollar spent. Transformation services allow them to move beyond cost savings, unlocking efficiencies, scalability, and innovation that strengthen long-term competitiveness.

As JT puts it: “Through our customer satisfaction review, we would say, we have done what you’ve asked us to do, but we’ve done with the same capacity, we’ve done three, four, and five times as well without you paying for it.” 

That ability to deliver more than expected — by enhancing processes, technology, and strategy — is the hidden value of business transformation services.

Outsourcing is responsible for all kinds of transformation. If you know a deserving outsourcing firm that’s making a positive change, this is your chance to shine a light on their work. 

The Outsourcing Impact Review celebrates companies that demonstrate exceptional performance, innovation, and a commitment to creating value. Nominate now!