Outsourcing firms: It’s time for a strategy rethink

Robots, automation and artificial intelligence have begun to take centre stage in the strategy of most large corporations. As a result, outsourcing companies servicing them out of India have to factor their impact on their own growth plans. Many of the contracts coming up for renewals and the new proposals under discussion are very often tied up with outcomes with significant lowering of costs on account of the expectations around reduced workforce deployment among other factors. Starting with the focus of outsourcing in the initial days on labour arbitrage, then moving to the recent years of value creation with process maturity and innovation, now large corporations are beginning to increasingly consider automation both onshore and offshore. This is resulting in the deployment of robots onshore replacing human involvement in certain tasks…

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