Machines are rising and they are offshore IT killers

I was sent this article on horses for sources today  It is about process automation and the use of software robots to do tasks carried out by humans, often cheap offshore workers. The reason I highlight it is because I have written lots about this and it is interesting.

Automation software is providing businesses with a real alternative to cheap offshore labour. The article is also about UK firm Blue Prism which I have covered regularly. They seem to be winning lots of business and promote themselves as an offshore killer.

The software robots replace manual triggers and which integrates disparate systems to enable an end to end business process. Costs are saved by the reduced need for people. See this guide I put together for more.

The software is also designed so people in the business rather than IT can create new automated business processes. If a company needs to introduce a business process for a new product it doesn’t need to recruit loads of bodies. The O2 story below is a good example.

Mobile operator O2 has deployed software to automate business processes, which will reduce the cost of back office operations and cut its reliance on offshore recruitment to cope with spikes in workload

Other examples:

Online shopping giant Shop Direct has deployed software to automate business processes without eating into the IT department’s busy timetable

Co-operative Financial Services has freed up the time of nine members of staff by installing software to automate decisions on making payments from accounts with insufficient funds.

But if outsourcing service providers are not shaking in their boots then an outsourcer insourcing to cut costs might just push them too far.

According to the London Evening Standard’s City Spy BT, which makes money outsourcing IT, is cutting costs by bringing work in-house.  “We think we can run a number of things more efficiently ourselves,” says chief executive Ian Livingston. Don’t know if BT Global Services’ new CEO Luis Alverez will want BT customers to do the same thing.

The City Spy report gives facilities management as something that can be done for less money using internal staff in-house. The report says it cut costs by 10%.

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