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Intelligent automation

Intelligent automation - Fueling next-generation outsourcing

Demand for “traditional” outsourcing services has wavered in the face of the advent of competing delivery models.

Demand for traditional outsourcing arrangements focused on cost savings via economies of scale, labor arbitrage, and offshoring faces a strong headwind in the form of increased availability of a host of other options. Cloud, “as-a-service” models, and internal automation initiatives have provided compelling alternatives for organizations to reduce costs for labor-intensive, repeatable processes, historically the bread and butter of outsourcing providers.

While outsourcing has at times failed as a source of innovation in the past, targeted opportunities exist for innovation in the future.

Particularly for complex processes that are not central to business strategy, outsourcing can provide access to technologies that an organization does not have the skills or resources to develop on its own.

Outsourcing will continue to be an important component of corporate strategies, but service offerings must adapt to the new environment.

Successful future outsourcing models will make greater use of advanced technologies, rely on a menu of standardized service offerings, and differentiate themselves more on how services are delivered rather than what is delivered.

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