Cheap, easy-to-develop software robots will eventually supplant many offshore FTEs.” This statement was recently written by James Slaby who is Research Director at leading BPO Industry firm HfS Research. So what is that has so captured the imagination of one of the world’s most respected research institutions?
The answer is Robotic Automation technology.
This technology is rapidly becoming the basis of the next generation of back-office transformation.
It is very simple, very effective, takes just weeks to develop, and pays back within months. It is used extensively by many leading organisations (Barclays, NPower, O2, Fidelity, Virgin….) and they are very positive references.
Robotic Automation can be used to automate any rules-based process. It links to all applications without need for adaptation and runs on any platform. It is faster, cheaper and more reliable than using people and can be rapidly scaled up or down.
Examples of Robotic Automation in Enterprise Use Today
- For a BPO provider it can be used to bring innovation to existing clients and to reduce costs on new business proposals and renewals. Other than BPO providers, the clients who have been adopting it earliest are largely in Retail Banking, Telecomms, Utilities and Public Sector.
- For end-user clients it can bring massive productivity in their processing or shared-service centres and can eliminate the need to look off-shore for low-cost rules-based process work.
- Even for the Off-shore industry it represents an opportunity to regain some of the lost arbitrage and reduce the level of unmanaged attrition where experienced resources move on when they tire of performing repetitive tasks day-in day-out.
But it is also a significant threat to the off-shore providers and shared-service entities. Their traditional model is people-based. Transfer of work takes time and is rarely hassle-free and when things go wrong, there is often no alternative but to travel to the off-shore factory to put things right.“This technology has the potential to dramatically shake up the outsourcing industry, especially those players whose value proposition largely rests on labor arbitrage. The workers of Robotistan have arrived, and they have the potential to thump their human counterparts at their own game. HfS urges BPO buyers, services providers and advisors alike to look at the jaw-dropping economics of robotic automation, and put together a strategy to accommodate and exploit it today.” HfS research Q4 2012 Three Alternatives for Business Process Going Forward Given the choice between 1) recruiting, hiring and training locally for say $800k, 2) defining scope, selecting provider and transferring off-shore for $300k or 3) automating in-house with Robotic Automation for $120k, it will be a very brave, or stupid, customer who chooses to off-shore; particularly when you consider that Robots are faster, more accurate, less argumentative, work 24/7 and only require training once.Want to learn more about Virtual Operations or talk with us about applying Robotic Automation to your organization? Schedule a call.