Outsourcing, in the current scenario, has become an integral part of operations of most major enterprises. The nature of outsourcing, however, is evolving at a fast pace. Organizations must understand these trends and develop strategies to take advantage of these evolutions. They must adapt to the shifting geopolitical policies and economies of labor arbitrage by harnessing emerging technologies and innovations.
Outsourcing is gradually shifting away from the offshoring and labor arbitrage models to more technical and innovative models that optimize productivity and cost-effectiveness while employing the local workforce. According to our recent paper (developed in association with The Outsourcing Institute), automation is becoming the most important technology and currently accounts for more than 10 percent of annual GDP growth worldwide. Robotics Process Automation (RPA) in particular, is quickly becoming an integral part of the new BPO model. As technologies such as predictive analytics, machine learning and cognitive computing are becoming more powerful, RPA is becoming more relevant, reliable and cost-effective.
RPA is expected to dominate the outsourcing industry, as global political and economic forces reduce the viability of geography-based labor arbitrage. Corroborating this hypothesis, our study shows that more than 68 percent of respondents said they would be increasing their spending on RPA.
Outsourcing service providers no longer compete on costs of labor only, but also on building and integrating new technologies in novel ways. Providers who don’t move quickly and innovate will be left behind. As traditional outsourcing models lose their viability, advances in automation are allowing service providers to stay competitive while offering better service to their clients.
A successful deployment of RPA can allow companies to improve productivity, reduce costs, improve governance and increase reliability. However, in order to implement RPA successfully, outsourcers need to have the necessary expertise and planning in place. Creating a robust automation strategy, setting up a Center of Excellence (CoE) with experts, innovating with new functional models and iterating to excellence are keys to continued growth in the coming years.
Read our recent report developed in conjunction with The Outsourcing Institute; Beyond the Basics: Driving Innovation in Outsourcing, which studies the key trends and innovation in the automation industry and guides the organization to leverage these new tools in order to stay competitive in a changing market.
Post Date: 11/8/2017