Effect of RPA & AI on IT Offshore Outsourcing Deals

January 25, 2017 7:08 pm | Updated 4 years ago.

Experts predicted that the traditional offshore outsourcing processes will undergo a change this year. AI (Artificial Intelligence) and Robotic Process Automation are the two new technologies that will have an effect on all offshore outsourcing deals.RPA and AI are harbingers of low cost and increase performance in offshore outsourcing deals. IT Offshore Outsourcing vendors will have to take into account these new changes for a smooth running of their business.

The introduction of AI and RPA would reduce the number of employees required to do a job and increase in savings. With automation, the number of people required a job will drastically go down. Moving to RPA and AI would also require the service providers and clients to position themselves at similar levels so as to work congenially towards a common goal. Thus it is a must do factor for IT offshore outsourcing vendors to upgrade themselves or face the consequence of losing out. It is also important for IT outsourcing clients to behave in a proactive manner and stay ahead in this competitive world.

The speed at which technology is changing, IT offshore outsourcing service providers needs to brace themselves fast to stay in the business. The steps that organizations engaged in IT offshore outsourcing must undertake in their future endeavors are:-

  1. Mention RPI and AI in future offshore outsourcing deals – Offshore Outsourcing contracts should outline the usage of RPA and AI in future dealings as these automation techniques if incorporated will help in cost reduction and efficient working systems. Deliverables will also be less time-consuming.
  2. Incorporate the changes necessary to bring in RPA and AI capabilities – Incorporating AI and RPA popularly known as ‘digitalization’ will necessitate the automation of the entire business processes. The entire process of automation will impact each and every aspect of the organization enhancing customer experiences. The IT offshore outsourcing vendors will have to bear additional responsibilities with increase efficiency so as to provide support to the customer’s business.
  3. Create awareness among clients about RPA and AI – The new offshore outsourcing contracts should be directed towards the integration of new technologies into the business processes. Initial expenditures will have to be incurred. If the customer is not aware of the entire process they might object to it and will not be ready to share the burden. Thus updating the customer about the capabilities of RPA and AI is a must for a smooth functioning of the system.
  4. The impact of RPA and AI on software licenses – Some existing software licenses restricts the use depending on the number of users and resources. RPA and AI may bring in some changes which might go against the policy framework of such software. The IT Offshore outsourcing vendor must keep that in mind before preparing the contract.
  5. Ownership of intellectual property – The IT offshore outsourcing contract must clearly outline the ownership issues pertaining to AI and RPA. The customer, as well as the offshore outsourcing service provider, must lay out clear-cut terms in the contract.

New technologies when they replace the old ones bring along with them lot of technicalities which needs to be addressed by both the parties involved in the deal. Solutions need to be full proof so as to be mutually beneficial in the long run.