Intelligent automation will redefine workplace outsourcing: Gartner

 

Gartner ExpoIntelligent automation services (IAS)will transform workplace outsourcing, so sourcing and vendor management leaders must prepare to restructure these services and renegotiate contracts to leverage intelligent automation, says Gartner.

“Intelligent automation will alter the provision of managed workplace services over the next few years, increasing service quality at a lower price,” said DD Mishra, research director at Gartner. “Sourcing and vendor management leaders must prepare to restructure these services and renegotiate contracts to leverage intelligent automation.”

“Automation-driven improvements in service delivery and pricing will allow sourcing and vendor management leaders to select a wider range of moving managed workplace services (MWS) outcomes that will improve quality and cost simultaneously,” Mishra added.

The mix of human and intelligent automation capabilities will create benefits on both pricing and service quality. According to Gartner, the replacement of human labor with automation can occur only if the latter offers the cost reduction.

As IAS provision becomes part of MWS, providers will pass on part of the resultant cost savings to clients in an attempt to win business. For services such as service desks, intelligent automation tools can be up to 65 percent less expensive than offshore-based staff.

Up to 2021, Gartner expects the costs of commodity services to decline by 15 percent to 25 percent annually, as they move toward this price point.

Ongoing reductions in outsourced head count due to intelligent automation will eventually force sourcing and vendor management leaders to redesign the workplace services for their organizations’ users.

Gartner estimates the above scenario will result in significant drop in the number of staff at the service desk, indicating that when 70 percent of the workload is dealt with by IAS, only 30 percent of the staff will remain.

Eventually, the potential for vendor lock-in, driven by a dependency on new tools and the IP they create, will require sourcing and vendor management leaders to incorporate new risk management provisions in MWS contracts, Gartner said.

Baburajan K from Gartner Symposium/ITxpo 2017

[email protected]

 

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