It wasn’t all too long ago that pricing models offered by information technology outsourcing (ITO) services and firms fell strictly into the “static” category. In fact, thinking of these agreements as anything but fixed or rigid in nature simply didn’t make much sense based on the layout of the outsourcing landscape. Customers requested a certain type of IT or software development and service providers fit this requisition into an inelastic pricing structure that had little room for change or adaptability.
Robots hit the headlines over many national and industry outlets this week. The clincher statistic, as reported by Bloomberg, The Times, and most of the international press, is that over five million jobs will be lost by 2020 as a result of developments in artificial intelligence, robotics and other technological change. So are the robots going to be taking away your jobs? Firstly, the 5,000,000 job loss statistic is taken from a survey of 15 economies covering about 1.9 billion workers, or about 65 per cent of the world’s total workforce.
As we enter a new year, it’s always fun to gaze into our crystal balls and anticipate the key trends and forces that will shape our industry in the coming year. Granted, given the pace of change and disruption that has come to characterise the outsourcing space, the business of prognosticating is becoming an increasingly risky one. That said, here are some thoughts and observations – in no particular order – from Alsbridge regarding what to expect in the coming twelve months. For one thing, we expect repatriation of services to make a comeback in 2016.
According to the Institute of Finance & Management, 61% of top global companies have implemented full Accounts Payable (AP) automation. This occurrence has had its challenges. Primarily, the universal commonality of budget allocation is the obstacle to overcome. When a company’s CFO is prioritising expenditures, their eye remains on cash flow and compliance/risk mitigation. AP must factor into these objectives to achieve funding for automation (or for anything else; with decisions being made by priority). For many large and mid-size organisations, AP is a manual world.
Press release: Jacksonville, Fla. (PRWEB) January 12, 2016
SIG, the premier membership organization for sourcing, procurement and outsourcing executives, today announces the acquisition of Outsource magazine and welcomes Jamie Liddell to the SIG executive team.
Sparked by the internet and accelerated by the spread of smart devices, consumers are more and more motivated to gather information online themselves when solving problems with a product or service. This has led to a new situation for customer contact centres – where businesses used to meter information to the public through dedicated agents, now the public at large is holding the cards.
The first ever meeting of Artificial Intelligence (AI) experts held in 1956 ended with a declaration from delegates that intelligent computers would be a commonplace in our lives in that decade or soon after. However, progress seemed to be illusory and the disappointment of Expert Systems at the start of the 1980s meant for many business leaders, AI came to mean ‘big hype’.
As supply chains become increasingly complex, identifying the legal risks inherent in managing such a widely dispersed network of suppliers, manufacturers and other trading partners is key to spotting issues and being able to solve them as soon as possible. Global supply chains come under threat from a wide range of risks including natural disasters, financial crisis, strikes, and, perhaps a most prominent concern of late, cybercrime and terrorism.
Stewart Macaulay – Professor of Law Emeritus, University of Wisconsin Law School – occupies a unique place in the evolution, awareness and acceptance of relational contracting. In fact one might safely argue that he helped set relational contract theory in motion in 1957, with the publication of his famous article, ‘Non-Contractual Relations in Business: A Preliminary Study.’ He was 26.