As we described in our first post on the increasing use of software robots in outsourcing, software robots are becoming more widespread because of their growing capabilities to execute business processes, such as customer service and IT service management. Highlighted below are some of the business drivers and potential benefits of using software robots.
- Labor Cost Mitigation. One of the primary drivers of offshore outsourcing has been labor arbitrage—leveraging the lower costs of offshore vendor personnel to achieve savings. However, the difference in expense has been gradually shrinking. Wages in India (long popular because of its English-speaking population and highly educated workforce) and other offshore locations are rising—both because of inflation, which has been consistently and significantly higher than in the United States in recent years, as well as other reasons, such as employee retention (salary increases to reduce the incentive to leave for a competitor). As a result, customers are seeking alternative strategies to keep costs down. Software robots offer a potential mitigation strategy against rising labor costs for the following reasons: