Will AI cannibalize the Outsourcing Industry? Outsourcing 2.0
Outsourcing is a fantastic way for small medium enterprises to allocate data to the trusted outsourcing partners and get it sorted out quickly and with lower overall costs than insourcing. However, there has been a recent development in the industry where it was predicted that with further enhancements in technologies, especially in regard with in-depth learning and AI, the need for outsourcing will see a steady decline, especially with big data and IT sectors. Now while it is just a prediction and the magnitude of the impact is yet to be ascertained, but regardless that is still some time away, and outsourcing isn’t going anywhere at least for now.
But here is the counter argument; this whole shift in technology can actually trigger a more streamlined change in the outsourcing industry. Think of it as outsourcing 2.0, and it’ll have much better integration with SMEs and here’s how.
Secure workspace on the cloud: While AI is definitely going to change a few things, the outsourcing industry has the next best thing at its disposal, cloud computing. The fundamental problem with an AI is that it’ll always have some form of monitoring once it goes mainstream, and in order to get more efficient, it is going to collect example datasets to tweak its working algorithms further, and such data might need to remain private, which AI-based systems might not have the ability to do so. With the cloud, however, the data cannot only remain private as cloud platforms are immensely securer but, at the same time, the clientele can actually keep a watch on the progress and accuracy of the data in real time.
Improvement in workforce skills: One of the biggest criticisms that outsource work faces is a discrepancy of work with regards to content creation. The issue being that often the freelancer doesn’t have the necessary insight on the project, and as a result, the output may not exactly turn out the way that the SME client intended it to be. Now because AI is positioned to mitigate this, the less skilled workforce must increase their workforce to compete with the standards of the AI. This will collectively benefit the workforce as now instead of an average workforce; they will be handling projects to skilled individuals, which, in turn, benefit the outsourcing service provider.
Tailored Experiences: Perhaps the biggest advantage that outsourcing firms have is that they work on a lot of projects simultaneously. This, in turn, leaves them with insights and experiences while working with a lot of different clientele, each having different specifications. The takeaway here is that any technology cannot replicate the experience that is gathered collectively by specialist outsourcing firms. Hence, this makes it especially effective for situations where the client has highly specific needs regarding the project.
Leveraging the AI: Regardless of how you see it, AI is a machine, and there is no way that it cannot be programmed to leverage the needs of outsourcing organizations, especially when it comes to time-saving and work allotment. In theory, it can even increase employment in the outsourcing realm and made to handle more projects at one time.
There are a lot more arguments in support of the claim to outsource staff, but the bottom-line is that each of them only leads to one of the two options. Sure the effect of technological developments will have an impact on the industry, but at the same time, it can be seen as an opportunity to improve on the existing and pave the way for a more efficient future.