AI Impact on IT BPO Services: Traditionally, the IT and BPO industry has utilized low-cost labor as well as offshore services, but with the recent advancement of AI it appears that the traditional outsourcing model may start to diminish greatly or altogether by the next five years. The introduction of automation, machine learning and generative AI is already changing the way businesses provide customer support, process data and manage their back-office functions.
How AI Is Disrupting Traditional BPO Models
Organizations have shifted from employing significant amounts of personnel for data entry, call centre assistance, or IT support toward utilizing Artificial Intelligence (AI) to undertake repetitive tasks previously performed by people using AI-enabled chatbots, robotic process automation (RPA), and predictive analytics technology. AI systems are capable of completing tasks that require significant manpower in a much quicker, more accurate, and economical manner.
Examples of how generative AI technology can eliminate or significantly reduce the need to outsource human capital by drafting emails, answering customer questions, analysing financial statements, and creating computer programs have been well documented and proven to have positive outcomes.
Shift from Labor-Based to Skill-Based Services
Companies are choosing to hire professionals in areas such as Artificial Intelligence, Data Engineering and Automation as opposed to depending heavily on the labour force by hiring large amounts of agents. The transformation of BPO firms from traditional service delivery companies into partners in the digital transformation process is being facilitated by providing AI-based solutions, Cloud Management, and Advanced Analytics rather than customer support only.
What This Means for the Future
There may be a falling off of traditional outsourcing models that strictly rely on cost arbitrage; however, this does not mean there will be a total job loss. The types of jobs that are transitioning will involve AI Monitoring, AI Training, and Strategic Consulting. Companies that adapt quickly to the adoption of Artificial Intelligence will be successful; conversely, companies that oppose change may become extinct.
Frequently Asked Questions (FAQ)
1. Is it possible for BPO jobs to be entirely replaced with the use of AI?
No, fully replacing BPO jobs with AI will not occur, although repetitive activity may be automated by AI; however, new jobs may appear in managing, analyzing and delivering digital operations through the use of AI.
2. Why is there a risk to the current outsourcing models?
AI will automate many activities but will do so much more rapidly and efficiently than current outsourcing models, thereby decreasing companies’ reliance or dependence on huge offshore teams.
3. How can BPO companies maintain relevancy?
By investing in AI, training their workforce to use available technology and moving from labor intensive service-type businesses to being service businesses that provide high value digital solutions to customers.
