What AI is Doing For Outsourcing
“Working like a robot” doesn’t have to be bad, it doesn’t have to mean one will take your job either – especially since the Fourth Industrial Revolution is already here and is transforming the world of work through artificial intelligence, advanced robotics, automation, analytics, and the Internet of Things. With AI as its steam engine, it expands the possibilities for how businesses approach real-time engagement with their customers, manage their operations and ensure business continuity. So, whether it is the e-Commerce retail giants Amazon, eBay, or an emerging startup, they all have one thing in common: the acceptance of technological advancements and the willingness to adopt them in their process automation.
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Everyone loves statistics, so here are some must-know figures for the future of employment in the hands of artificial intelligence:
- A recent study released by McKinsey Global Institute reports that roughly one-fifth of the global workforce will be impacted by the adoption of AI and automation, with the most significant impact in developed nations like the UK, German and US. By 2022, 50% of companies believe that automation will decrease their numbers of full-time staff and by 2030, robots will replace 800 million workers across the world.
- Deloitte reports that at present, close to 50% of business process outsourcing engagements are based on traditional models; however, a large number of companies are expecting transformational changes to this model in the next two to three years. While this does not mean that the traditional engagement models will disappear, it presents cost-saving and operational efficiency opportunities for service providers that are embracing change and adding automation capabilities to their portfolio.
- 86% of CEOs report that AI is considered mainstream technology in their office as of 2021.
- 91.5% of leading businesses invest in AI on an ongoing basis.
- AI technology was expected to create 500,000 more jobs than it was expected to replace in 2020.
- Jobs are anticipated to be in high demand with 97 million specialists needed in the AI industry by 2025.
- AI market share in the US is expected to value $190.61 billion by 2025.
- Garner predicts AI software will reach $62 billion in 2022 alone, an increase of 21.3% from 2021.
- According to Semrush, the forecasted annual growth rate of AI between 2020 and 2027 is 33.2%.
Outsourcing and AI
What exactly does the outsourcing industry benefit from AI? It’s not a surprise that outsourcing, like any other service, has weaknesses. Slow response times and security risks might be those things that hold people back from outsourcing. However, AI promises to solve this problem. One of the purposes artificial intelligence was created for is to minimize human efforts by performing routine tasks and allowing people to concentrate on the main business goals.
Focus On Business says that the successful deployment of AI technologies requires a well thought-out strategy and needs to include three important elements: AI technology, data, and humans. Combining these three elements is essential for success. With this, AI can help outsourcing companies automate simple and mundane tasks, augment human workers and allow them to focus on higher value tasks, provide managers with insights into complex decision-making processes, change how companies work and increase their business velocity and work efficiency, and of course, reduce costs.
If applied correctly, AI will be a boon to the outsourcing industry, allowing people to keep their jobs while increasing their productivity and customer satisfaction levels. The Fourth Industrial Revolution paves the way for better work quality with the combined effort of both human and machine.
Some sources say that AI will kill the outsourcing business, while others firmly believe that groundbreaking inventions are the most powerful forces among IT outsourcing trends and will boost the growth of this industry. But as technology rapidly develops overnight, the future of outsourcing in the hands of AI is yet to be concluded. As the outsourcing landscape evolves, service providers that incorporate AI capabilities at the earliest are set to reap huge benefits from this emerging trend in the outsourcing space.
