Indian IT supplier partners offshore IT killer

I have been writing quite extensively recently about the increasing use of automation software in business. Businesses are increasingly automating low level IT and business process tasks through software.

This might be a large telco automating a process by which it sends customers new SIM cards or it might be the automation of thousands on monthly software releases at a bank. Although there are money advantages such as increasing the speed and consistency of tasks it is the low cost which is seen by many as the big attraction.

So in the same way that offshore suppliers can lower the cost of IT and business processes through cheaper labour, software robots can. So it is often labeled as an offshore killer. For example O2 decided to move to business process automation software to reduce its reliance on offshore staff. Although the staff in India are about a quarter of the cost of UK equivalents it adds up.

The offshore suppliers therefore have to get involved with automation software as more and more businesses are likely to take it up. IT trade body Intellect is even promoting automation software to UK businesses. One of the things that software automation brings to IT departments is a freeing up of resources to focus on higher level tasks. It is debatable how many low level IT tasks are carried out in-house these days by big businesses with the massive cost savings offered offshore, but the offshore suppliers will want to be the ones that do the higher level jobs.

Anyway the point to this post is to highlight the deal agreed between IT automation software firm IPsoft and Indian IT services provider Infosys, which is training 5000 people in India on the IPsoft technology. So Infosys will be after the higher level IT jobs. I am sure there will be more offshore suppliers following Infosys’ example but thought this was worth noting.

Read some of the articles I have written about automation software here:

Low-level tasks eat up 30% of IT departments’ time, report reveals

Shop Direct deploys software to automate business processes

Co-operative bank extends automation