How Robots are Replacing Humans in Business Process Outsourcing?
We have immense development and advancement in the field of robotics over the past decade but none of it has threatened the jobs of millions in a determinate way. A new technology termed Robotic Process Automation has came into light, which has a simple and straight forward objective of carrying out the business process which is usually performed by the humans. RPA as it is being called is best suited in scenarios where processes are repetitive in nature and occur in rule based and frequent fashion. In short, it is a great invention for the BPO sectors, which rely on the outsourcing processes.
To be true, it is not a robot but a software robot, which can efficiently manage certain level of processes operation with ease. It costs around one ninth of the Full Time Equivalent (FTE) person working in West or a third of the cost of an FTE working offshore such as in India.
The chain effect of utilizing robotics in BPO
The potential impact on the BPO sector with the use of robotics can seriously dampen its worth of over $300 billion. It is worth noting that India alone employs more than 3 million people in the BPO sector followed by the Philippines, which adds another million. Across the Europe and US, millions of people make their living through working in the BPO sector. RPA will certainly threaten the jobs of every single person associated with the BPO industry.
Though technology is quite immature at the time as it can only replicate the transactional task but it will impact 20-40% of working in different processes in BPO. If RPA is brought in the BPO sector on a grand level then it will rapidly advance in threatening more jobs, which will only bring the operational cost down, but it will seriously impact the livelihood of millions.
A horizon of new opportunities
The business process management (BPM) industry is actively looking forward towards the robotic process automation technology with a positive view. It doesn’t seem to be challenged or threatened by this like the BPO counterpart rather it views as an avenue of new opportunities. An example will help in shedding more light over this positive and optimistic view. Data entry played an integral part of the first generation BPO but with the advancement in the optical character recognition, it took a back seat. BPO were able to improve their productivity along with minimizing the recruiting of data entry operators, which helped in focusing finances and efforts towards other areas.
According to the industry experts, the automation technology will not bring any threat to the jobs of human operators nor will it replace them in a determinate fashion. Robotics is in initial stages which doesn’t bring the loss of human ‘connect’ in this increasingly connected digital world. It should be understood that people still prefer having human operator at other end to resolve their issues. However, robotics, androids or automation technology will end up in replacing humans in some of the processes in the industries but in an outlandish manner.