According to Gartner, intelligent automation is set to completely transform business outsourcing. As a result, the renowned technology research firm cautions that sourcing and vendor management leaders must adequately prepare to restructure their service offerings and renegotiate their contracts. Is your organization ready? Let’s take a look at what else Gartner had to say.
Gartner defines intelligent automation as an umbrella term that covers a variety of different skills, strategies, tools and techniques used by service providers to remove the need for manual labor, increase the reliability and predictability of services and reduce the cost of delivery.
According to Research Director DD Mishra, “Intelligent automation will alter the provision of managed workplace services over the next few years, increasing service quality at a lower price. Sourcing and vendor management leaders must prepare to restructure these services and renegotiate contracts to leverage intelligent automation.”
He went on to say: “Automation-driven improvements in service delivery and pricing will allow sourcing and vendor management leaders to select a wider range of moving managed workplace services (MWS) outcomes that will improve quality and cost simultaneously.”
Making the shift from human functionality to a mixture of humans and intelligent automation will produce a number of noteworthy benefits, both in terms of pricing as well as service quality. It’s important to point out, however, that this transition to a mixed services model will only be possible if the automated services deliver a reduction in costs for the service provider.
Most service providers are now recognizing that continuing to deliver managed workplace services through the addition of more staff is no longer a feasible business initiative and are thus turning their attention to automation.
As intelligent automation becomes an integral part of MWS, providers will pass along some of the resulting cost savings to customers, which will position them as more competitive. Gartner points out that for services that once leveraged outsourcing to reduce expenditure, intelligent automation can be up to 65% less expensive than offshore staff. In fact, the research firm predicts that the costs of commodity services will decline by 15-25% annually until the year 2021.
As a result of the expected reductions in outsourcing head count due to intelligent automation, vender and sourcing management leaders will be forced to redesign their workplace services. This will result in a subsequent reduction in service desk staff numbers. When 70% of the workload is being handled by automation, only 30% of the staff will remain. This will ultimately require sourcing and vendor management leaders to adopt new risk management policies and make other modifications to their contracts.
Like it or not, intelligent automation is changing the landscape of IT services. The best way to adjust to these changes is to get ahead of them. Give our next generation automation and orchestration platform a try today and start positioning your organization for future success.