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The Effect of Robotic Automation on Outsourcing

Jan 19, 2018

The Effect of Robotic Automation on Outsourcing

It’s long since been standard practice of major industries to outsource routine business processes as a means to increase the bottomline. Major enterprise in the financial, insurance, and telecom realms have utilized this practice for decades, however this paradigm is showing signs of evolution. As wages abroad rise, and the challenges inherent to outsourcing remain constant, the possibility of Robotic Process Automation (RPA) stepping in to overtake Business Process Outsourcing (BPO) becomes more and more palpable.

HOW RPA COULD REPLACE BPO

RPA stands to make obsolete many of the triumphs of current outsourcing models. Reliable estimates from Deloitte Consulting and other statistical heavyweights predict RPA will reduce costs more than 70 percent over outsourcing. Moreover, RPA has a slew of additional advantages, such as:

Complete Oversight: You remain in total control of your vision, because you organize the needs of your automation, eliminating any possibility of discrepancies created by interfacing a third party.
Adaptability: RPA is compatible with a vast array of business processes. Rule-based, definable tasks are typically well-suited for RPA.
Cost Efficiency: By implementing RPA you stand to spend a small percentage of what you would typically expect to pay for any outsourcing commitment.
Sliding Scale: Robotic Automation allows you to quickly and easily scale up or down, depending on the particular needs and demands of your varying practices.
Streamlined Communication: Robots only need to receive information one time; they immediately retain essential instruction, and subsequently perform their practices flawlessly, without ever complaining, or taking bathroom breaks.
Precision: RPA Robots are exceedingly accurate.
Tractability: It’s easy to make sure that RPA robots stand in compliance with business mandates, because they’re highly programmable and adhere to a strict traceable set of procedures every time.

AREAS WHERE RPA HAS YET TO OVERTAKE OUTSOURCING

The list is short:

As you might expect RPA lacks in analyzing unstructured data, such as emails and attachments. In order for this information to be of any use to RPA bots, companies must first digitize content using OCR or likewise technologies.
Because of the nature of RPA, a single error can reproduce across multiple entries in multiple applications, so accuracy of input is relatively crucial.
Lest we forget: The A in RPA stands for automation. A business model that makes frequent changes to its operations may not benefit as greatly from RPA, because rules-driven processes that remain relatively fixed will most greatly reap the advantages of RPA.
Human interaction will invariably remain superior to RPA robots’ capabilities. Some outsourcing tasks will never be meant for RPA.

OUTSOURCING WILL REMAIN STABLE INTO FORESEEABLE FUTURE

Generally, with the introduction of breakthrough technology there arises panic and nostalgia. People fear that without the existing models they will have no stability, and we currently see this speculation surrounding the future of BPO. People have begun to wonder, is outsourcing on its way out? With new technologies, however, there always arise new opportunities, generally outnumbering the possibilities of the past.

This influx of new opportunities is exactly what we are currently witnessing with the advent of RPA. RPA , ironically enough, tends to create new demand for those voice-based processes that require a human touch, because BPO companies are recognizing its advantages. When BPO companies utilize the power of RPA, they can be all the more effective.

WHAT WE CAN SAY ABOUT RPA

RPA is integrated into the realm of outsourcing, only it is outsourcing to a software bot, rather than a foreign entity. It can be hugely beneficial to businesses, as it takes care of mundane repetitive tasks, and frees people to do the more in depth work best suited for staff.

Businesses’ success is differentiated by flexibility, agility, and scalability. RPA delivers on these differentiators, allowing companies to increase productivity, cut costs, and ultimately make the most effective use of their human assets.

If you’re interested in automating some of your processes to reduce error and eliminate some of your human costs, Kerr Consulting's Managed Services may be ideal for you.

Learn More About Managed Services

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