A.T. Kearney’s 2016 Global Services Index, which ranks the world’s top 55 outsourcing countries along measures such as cost of work, labor skills and ease of doing business, confirmed the disruptive role that robotics and Business Process as a Service is having on IT outsourcing. Brazil, Chile and Mexico all made the top ten — Chile for the first time — and other big winners included Colombia, which jumped 23 spots and Costa Rica, which jumped five and was praised for its level of preparedness in relation to robotics process automation.
In the latest episode of our podcast series Nearshore Cafe, Johan Gott, a principal in A.T. Kearney’s private equity practice and one of the authors of the Global Services Index report, discussed how the countries are compared and ranked, what the growing use of automation means for countries like India, and the implications of this for the nearshore.
“India should be worried,” Gott said, emphasizing that countries that do not want to lose out to automation need to differentiate themselves with high level human talent and sophisticated BPO/ KPO offerings. He also highlighted the rise of social impact outsourcing and its potential in Latin America and the Caribbean.
The country is going to have a tough journey towards the digital economy. On one hand, it will create highly advanced banking and payments interface. On the other hand, it will replace many traditional jobs. If the per capita income of India is to be increased, creating manufacturing jobs for the mass number of unemployed people in need of the hour.