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How to create a strategic framework for your next services partner – AI. 

 

AI’s changing landscape: 

Outsourcing 2.0 has been made possible by the expansion of AI research, resulting in innovations that include machine learning for analyzing large data sets to derive insights; NLP to understand and respond to human language; computer vision for classifying image and video objects; and pattern recognition for detecting scams. These new capabilities have led more organizations to use AI for more tasks. 

The scope of AI applications that hold potential for picking up business process, tech help desk and customer support, and other common outsourcing functions, is immense, ranging from chatbots to personalized recommendation engines to data analytics. AI-based tools can match and even outperform humans on selected tasks while operating tirelessly at scale. As the technology continues to develop, AI will be able to augment and automate even more processes.   

Soon, however, many organizations that outsource to AI will shift to a structure that resembles a diamond (see Figure 1). As we see repetitive human work undertaken or heavily assisted by AI, workers will reskill to focus on higher-value work and move into more specialized positions. Traditional outsourcing will continue, as organizations leverage the skills of dedicated IT services companies for many critical tasks, allowing them to focus on the core business.   

 

As we see repetitive human work undertaken or heavily assisted by AI, workers will reskill to focus on higher-value work and move into more specialized positions.   

Under the diamond model, power and authority are more evenly distributed. Also, because there’s a greater emphasis on leveraging creativity and innovation for tasks that are unsuitable for outsourcing to AI, some management layers can be optimized, allowing information to flow more easily and decisions to be made more quickly.