The Disruption Of The Offshore Service Delivery Model By Technology And Artificial Intelligence

Traditionally, companies that have been seeking to reduce costs have followed an offshoring strategy to take advantage of educated, skilled, low-cost labor in countries such as India. They have either outsourced or set up their own Global Capability Centers (GCCs), often requiring large scale, with several hundred full-time equivalents (FTEs) to be cost-effective. However, with the rapid drive to automation, and especially artificial intelligence (AI), the number of people required in place is being dramatically reduced, making GCCs in low-cost jurisdictions feasible at scales as low as a few tens of employees. This movement is a major disruptor to the offshoring industry but provides opportunities for smaller and mid-size entities needing to drive efficiency and reduce costs.