The Rise of the Machines: Don’t Worry, Be Happy

Traditionally, in the BPO industry there is a knee-jerk reaction to “ship it” first and sort it all out later. When it comes to better processes, shipping it can be highly beneficial as outsourcing providers have the experience to help organizations of all sizes to streamline procedures and implement a best-practices approach to their accounting functions.

Typical benefits of outsourcing include:

  • Cost reduction with improved productivity
  • Standardized processes
  • Increased compliance
  • More knowledge sharing and transparency

Currently there are millions of people around the world performing repetitive back-office is often the work that is “shipped” to take advantage of labor arbitrage.

Labor Arbitrage Alone is Unsustainable

Conventional outsourcing has been built on cost reductions by moving jobs to low-cost labor centers. However, this quest for ever-cheaper labor supply simply isn’t sustainable.  Instead of just transferring jobs and tasks, what about looking at what can be accomplished through a new type of arbitrage – automation and robotics?

Providers have the tools, platforms and technology to automate tasks and functions. Today’s New Generation model employs labor automation, including robotics, to remove FTEs from the equation for a fraction of the price. In other words, robotic automation has the potential to be a highly disruptive technology on both the buyer and the provider side.

To Err is Human, To Work 24/7 Is Robotics

Automation removes the entry errors caused by humans, and provides increased control and predictability (that can be scaled easily). As well, robots work 24/7. The potent mix of improved efficiencies, increased productivity and lowered cost is quite the value proposition.

Robotics automation also frees up your best people from mundane tasks. In F&A, there are many manual processes that are time-consumer and repetitive. Using talent to perform these sorts of jobs (both buyer or provider side) is often a poor allocation of resources.

From a buyer point of view, using outsourced robotics to do this type of low-value work can makes a difference to your bottom line growth. Your F&A team are free to focus on the bigger picture, one that is aligned with the strategic goals of the company, and how best to support growth.

New Sourcing Strategies for a New Age

Because our global marketplace is in constant flux, and organizations are facing challenges like increased competition, regulations and compliance and multiple stakeholders spread across disparate geographies, businesses are asked to achieve more in less time. Robotics delivers a whole new sourcing strategy.

Companies need to review not only what tasks and processes can be outsourced, but how can technology be used to reduce and eliminate the need for FTEs. Far more than simple labor arbitrage, technology can be used to work both smarter and harder, for less.

If you would like to learn more about how New Generation robotics and automation technology can help your company, I invite you to schedule a free assessment of your current practices. Comments? Questions? I’d be happy to answer.

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David Kaminski (69 Posts)

With over 30 years of experience, David has worked as a Partner with Capgemini, and has served as General Manager of Worldwide Financial Services for Microsoft Corporation. During David’s 9 year tenure at Microsoft, his responsibilities were split between running two global businesses as Chief Credit Officer of Microsoft Corporation and President of Microsoft Capital Corporation. David and his team of 400 professionals managed a global asset of $8 billion in more than 180 countries.


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About David Kaminski

With over 30 years of experience, David has worked as a Partner with Capgemini, and has served as General Manager of Worldwide Financial Services for Microsoft Corporation. During David’s 9 year tenure at Microsoft, his responsibilities were split between running two global businesses as Chief Credit Officer of Microsoft Corporation and President of Microsoft Capital Corporation. David and his team of 400 professionals managed a global asset of $8 billion in more than 180 countries.

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