Intelligent automation and AI will make workplace outsourcing far more effective and businesses should be prepared to restructure their contracts accordingly according to industry analyst Gartner.
Improved automation will mean that the need for expensive labour – currently the biggest cost associated with outsourcing – will drop dramatically. The improved predictability and reliability of automation add further weight to the argument that the cost of outsourcing should fall accordingly.
“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,” says said DD Mishra, research director at Gartner.
It is unlikely that outsourcers making use of advanced automation will pass on these cost savings directly. Therefore its critical that those sourcing and renegotiating contracts understand the importance of automation and haggle price accordingly.