March 4, 2025

Technology-Based Solutions Are Radically Changing the Service Delivery Landscape

Since the early 2000s the dominant delivery model, other than in-house, has been based on arbitraged labor from lower cost jurisdictions, with language capability being a key driver. However, with increasing use of technology, from robotic process automation (RPA) to machine learning (ML) and artificial intelligence (AI), there is dramatic change across multiple dimensions, including the activities that are delivered, the use of technology in some or all of the activities, the locations that are utilized, the choice of service provider, and overall agility.

Historically, activities where alternative delivery models have been adopted were in the back office areas, including Finance, Human Resources, Procurement and Information Technology. However, the maturing of the industry and the incorporation of artificial intelligence into delivery models has provided the opportunity to include front office services such as Sales, Marketing or Research and Development into new models. These have been aided by incorporation of analytics, using data that can be produced rapidly from automated delivery processes, and real-time reporting to enable improved decision-making.

Delivery location remains a key factor, but it will become less influential than before. Language has been the factor that required services to be delivered from particular locations, but for some years technology has substituted for labor in written applications that include multiple foreign languages. Moreover, greater use of chat bots and application of artificial intelligence has reduced dependency on even spoken language capabilities. This has a profound implication on delivery location and the number of centers required, with opportunities to concentrate in fewer operating centers and to locate in some of the multiple smaller, and more diverse, locations that are emerging for specific activities. 

Read the Full Article

Authors
FOLLOW & CONNECT WITH A&M