Spend on third-party services is huge and growing, bringing attention to the need for better spend management capability.
Enter the titans of third-party services spend management – contingent workforce MSPs and Procurement Outsourcing BPOs. Given their history and expertise, these types of service providers are well-positioned to help manage this spend, but they have varying capabilities that are vital to understand when choosing between them.
450,000-550,000 FTEs (30% of the existing BPM workforce in India) may need to be replaced by 2021 due to automation and changing skills needs
One-third (or half a million) of the existing India BPS workforce may need to be replaced by 2021
Demands of the next-generation investor
What smaller countries lack in breadth, they can make up in depth. Finding an area of specialization can help countries that might otherwise get lost in the pack, stand out from other locations that have a larger population from which to draw or longer track record of which to boast.
IBM is one of many companies that has found a regional home in Costa Rica. In 2011, it doubled down and expanded its already substantial presence in the country with a $300 million investment in a new customer support center and announced plans to hire an additional 1,000 workers.
Salil Dani, a vice president in the global sourcing service line for the Dallas-based consulting and research company Everest Group, says that the country still has a ways to go to compete with the tech-specially giants but that it is on the right path.
“Costa Rica doesn’t have a large, talented IT pool like a Brazil or a China or an India,” says Dani. “But still, even if they are able to train some talent for ITO skills, that will really strengthen the proposition of Costa Rica even further. Because then people can look at it not just as a location for voice and Business Processing Outsourcing (BPO) but also doing some IT work.”
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The outsourcing industry in the Philippines, which has dethroned India as the country with the most call centers in the world, is worried that the rise of artificial intelligence (AI) will eat into the $23 billion sector.
AI-powered translators could dilute the biggest advantage the Philippines has, the wide use of English, an industry meeting was told this week. Other AI applications could take over process-driven jobs.
“There’s definitely reasons to be concerned because technology may be able to replace some of what could happen in voice,” Eric Simonson, managing partner of research at Everest Group, a management consulting and research firm, told Reuters.
Reskilling employees rather than external hiring is a priority for organizations as new technology, especially artificial intelligence (AI), now demands new skills in information-technology and business-process management (IT-BPM) services.
This view is backed by research from Everest Group, whose executive on Tuesday underscored the speed by which changes in technology are outpacing the development of compatible skill sets.
“As technology changes, the role of humans change,” said Eric Simonson, Everest Group managing partner of research. “The challenge we’re facing now is not that new technology is replacing jobs—that’s been happening for a long time—what’s happening now is that it’s accelerating. It’s faster than how the labor market are used to dealing with.”
Third-party administrators, BPO providers, and BPO providers with TPA capabilities each have something to offer insurance carriers; however, determining the best choice for an individual enterprise depends on specific outsourcing drivers