Business Process Outsourcing vs. Artificial Intelligence


Six months ago, automation emerged as a new trend. Now an IT company has developed a new approach through the use of artificial intelligence. IPSoft has boldly proclaimed that it will disrupt the business process outsourcing (BPO) industry through its “cognitive technology”. Will it finally get rid of offshore outsourcing and deliver a panacea of automation efficiency?

Humans vs. Artificial Intelligence


It's possible for software robots to automate repetitive and simple manual tasks. IPSoft is already using artificial intelligence to manage computer networks with minimum human intervention. However, there are jobs that require creativity and critical thinking.

Tasks such as graphic design, animation, and copywriting are some of the common outsourced services that can't simply be automated. These tasks are not bound by rules, but governed with ideas, which are a combination of creativity and experience. 

Human Interaction vs. Automated Behaviour


If a cognitive technology based solution finally takes over the BPO industry, how would the consumers react? There are outsourced services that directly deal with consumers such as customer service.

If you're a customer calling your insurance company for a refill of your medication, would you talk to an automated response or a human being? Would you be comfortable interacting with a programmed virtual assistant? The humane part of a work can't be automated, and there are people who still prefer to work with humans.

Automation vs. Offshore Staff Leasing


Let's say that the cognitive technology based solution is adapted by businesses, what would happen to existing employees? People will serve as maintenance and support for software robots, but what about those who don't have the skill set for the job?

At this point a whole industry, along with its workers, will be uprooted. Outsourcing doesn't always mean offshoring as US companies also outsource to third party providers onshore. Small businesses rely on virtual workers on a project basis for inexpensive work.

Regulatory Compliance


Changes in technology, consumer behaviour, regulatory and compliance requirements, competition, and other related factors, affect businesses. Even the assembly of gadgets such as smartphones and tablets constantly change due to varying specifications. Automation needs to constantly catch up until an actual self-learning software robot exists.

Analyst firm Ovum conducted a comprehensive study on automation in systems management and found that automation will not spell the end of outsourcing. As of now, the technology is still immature and lacks industry standards.


It's yet to be seen if a technology solution can really replace humans. It's also unclear if businesses are willing to invest in technology rather than a human workforce. For now, the global BPO industry is still thriving. Automation does sound like a good idea, but it also has implications and effects that may not benefit everyone.


Post a Comment

Template developed by Confluent Forms LLC; more resources at BlogXpertise