There were times a decade or two ago, where more work translates to more people to execute. The outsourced vendor will ramp up and down depending on the volume of work.
Back in days, when a BPO team had to be ramped-up it means a whole team must work to get the ramp-up achieved. For example, Hiring, training, transport, workspace, infrastructure etc., this is a huge, concerted effort that needs to be orchestrated.
Do you think is it worth the hassle when you can have digital workforce who can do lot of these mundane things?
Isn’t Intelligent Automation another form of outsourcing rather insourcing?
It is indeed true that the Intelligent Automation is a type of out/insourcing where the tasks are assigned to virtual workforce (software automation) instead of human workforce.
Software automation comes with superior precision and work quality. There is no room for error, there is no delay in process, there is no fatigue, no need for additional training for ramp-up. It is as simple as you train the software automation once and forget it till you make a change in process or the UI or application. However, make sure to measure and monitor the automation.
When asked a group of experts this question “Are BPOs lagging in automation adoption? 81% of them said they are lagging.
It is high time BPOs embrace the power of Intelligent Automation and utilize the human intelligence far better.
If the BPO providers can turn to intelligent automation for mundane and data intense work, they can offer other services at a lesser cost.
If a BPO provider is struggling to ramp-up because of time zone differences, skills etc., automations are the best friends who are equivalent of 3 employees with availability never in question.
Overcoming these challenges will create a virtual disappearance of low-value task roles.
The intent should be to reduce low-value tasks from a human shoulder to give high-value tasks to the human.
The high-value human task will be centred around core business knowledge and the ability to handle exceptions coming from virtual workforce. This can also eventually bring in high-value jobs to onshore or nearshore on a similar time-zone.
More importantly, the shift in operating models can happen from FTE based to outcome based while SLAs can be made much more relevant to customer centric rather than process centric.
When we turn to Intelligent Automation these are some of the benefits we can witness in the BPO space as an immediate result
These are not the only reasons to adopt Intelligent Automation. If you want to improve business process, you need to look at process automation as the key. Customer experience is the key lever to future proof the business. When you automate, the decision makers can spend more time on customer experience, process rather than the administration of human effort in executing the mundane/menial tasks.
Talk to us for more insights and share your views to exchange knowledge.
Let’s automate together!
Thank you Tomasz Kmiecik, Tom Kmiecik, Anastasia Paruntseva and the entire G1ANT team to make this happen.
Tactical success is grounded on a strong understanding of the applicability of automation in your business, budgeting for the Total Cost of Ownership, computing the business case returns, leveraging applicable automation methodologies and solving specific business problems.
Executive teams and their business and technology leaders recognize the Total Cost of Ownership as a key success factor for their automation program and focus on budgeting for and managing these costs during the automation initiative to maximize returns.
The main components of the Total Cost of Ownership are:
Let’s look at this cost component more closely and identify key insights to consider.
Training and certification costs extend beyond the in-house development team, meaning BPA Developers, to include BPA Program Managers, Business Analysts and Operations Managers. Once a specific software solution is selected the team will need training on that specific solution.
Therefore, the availability of live instructor lead, online training sessions such as webinars, on-demand materials, or vendor training platforms and related documentation would make training and support easier. It also helps if the software solution is intuitive and requires only minimal technical knowledge to operate. Then, business users can pick it up faster.
For citizen developers, courses typically cover the basics of BPA, identification of automation use cases and how to build basic functional task automations using common enterprise automation software and plug-in packages. For Developers, courses typically cover topics associated with quickly creating, installing, deploying and maintaining automations. For Business Analysts, courses typically cover identifying business processes for automation, basic automation building, and managing BPA reporting.
Training costs equate to roughly 6% to 7% of the Total Cost of Ownership.
In conclusion, successful automation initiatives require careful strategic planning and superb tactical execution. Tactical success is grounded on a strong understanding of the applicability of automation in your business, the Total Cost of Ownership, the business case (ROI), automation methodologies and business problems to be solved.
Tackling these cost drivers will move your organization’s automation initiative forward, speed up implementation, reduce automation costs, address technology challenges and improve returns from the average, 24%-29%, to the extraordinary, greater than 110% across three years.
Amiseq’s Intelligent Automation practice can help you make sense of the Total Cost of Ownership. Learn more at www.amiseq.com or register for one of our Making Sense of the Total Cost of Automation webinars on our LinkedIn page. If you find this article insightful, please share, comment or like.
Author: Derek M. D’Onofrio | Director, Client Relations – Amiseq Intelligent Automation
Tactical success is grounded on a strong understanding of the applicability of automation in your business, budgeting for the Total Cost of Ownership, computing the business case returns, leveraging applicable automation methodologies and solving specific business problems.
Executive teams and their business and technology leaders recognize the Total Cost of Ownership as a key success factor for their automation program and focus on budgeting for and managing these costs during the automation initiative to maximize returns.
The main components of the Total Cost of Ownership are:
Let’s look at these cost components more closely and identify key insights to consider.
Licensing costs include the expenses incurred to purchase or access the core components of the enterprise BPA software solution, such as BPA tools, platform and configuration management. In addition, the costs of adding a high availability disaster recovery component to help ensure business continuity.
Business and technology leaders need to consider their user group of professional or citizen developers; ease of use of automation design, deployment and management functionalities; scaling capability and more. They must also consider traditional by license and innovative free trial, pay-as-you-consume and pay-by-ROI cost models.
Licensing costs equate to roughly 21% to 24% of the Total Cost of Ownership.
Infrastructure setup costs are the costs of setting up the system, including desktops, servers, and virtual machines. The type of deployment will have a large effect on this cost. There are a variety of architecture and hosting options from fully on premises to cloud native SaaS. Each with unique security specifications.
Technology leaders should consider the operating system that the BPA vendor supports. If it only supports Windows and the existing machines run on MAC or Linux, estimating the cost of making a move to Windows is necessary. If a company opts for cloud deployment, it could save on capital expenses such as hardware. Cloud-native implementation can deliver significant Total Cost of Ownership reductions in the range of 21%-27%.
Infrastructure set-up costs equate to roughly 3% to 4% of the Total Cost of Ownership
Maintenance and support costs include the time and resources of the IT team that are allocated to installing, maintaining, and upgrading enterprise BPA software. The IT team should not be spending a lot of time on installations and upgrades.
A browser-based solution will ease the job of the IT team. But like any other IT product, your BPA solution may need occasional support. Availability and cost of support from your vendor or third-party service provider would be something to review before finalizing your solution. Let’s not forget the domain expertise of the third-party service provider.
Maintenance and support costs equate to roughly 7%-8% of the Total Cost of Ownership.
In conclusion, successful automation initiatives require careful strategic planning and superb tactical execution. Tactical success is grounded on a strong understanding of the applicability of automation in your business, the Total Cost of Ownership, the business case (ROI), automation methodologies and business problems to be solved.
Tackling these cost drivers will move your organization’s automation initiative forward, speed up implementation, reduce automation costs, address technology challenges and improve returns from the average, 24%-29%, to the extraordinary, greater than 110% across three years.
Amiseq’s Intelligent Automation practice can help you make sense of the Total Cost of Ownership. Learn more at www.amiseq.com or register for one of our Making Sense of the Total Cost of Automation webinars on our LinkedIn page. If you find this article insightful, please share, comment or like.
Author: Derek M. D’Onofrio | Director, Client Relations – Amiseq Intelligent Automation
Tactical success is grounded on a strong understanding of the applicability of automation in your business, budgeting for the Total Cost of Ownership, computing the business case returns, leveraging applicable automation methodologies and solving specific business problems.
Executive teams and their business and technology leaders recognize the Total Cost of Ownership as a key success factor for their automation program and focus on budgeting for and managing these costs during the automation initiative to maximize returns.
The main components of the Total Cost of Ownership are:
Let’s look at these cost components more closely and identify key insights to consider.
Assessment and consulting costs are the costs of engaging a suitable BPA third-party service provider or consultant to provide insight to automation strategy, technology selection, operating model design, program governance, people enablement and automation development. Costs also include automation process discovery exercises leading to automation business cases with favorable ROI calculations.
When hiring a third-party service provider or consultant, consider the amount paid for consultants compared with the cost of an in-house automation Center of Excellence (CoE). Here, the factors include the time and effort spent by the in-house automation team and analysts to identify process opportunities, build business cases, calculate ROIs and implement automation solutions. Innovative automated process discovery tools are becoming increasingly available and are enabling in-house automation teams.
Assessment and consulting costs equate to roughly 5% to 6% of the Total Cost of Ownership.
Development and deployment costs are those costs associated with developing, configuring, and moving software automations from conception to production. The cost varies based on how development is done. For example, having an in-house development team may cost less than hiring a third-party service provider. Additionally, the in-house development team may be staffed with professional or citizen developers. A citizen developer is an employee who creates application capabilities for their use or the use of others using tools that are endorsed by IT or the business unit. A citizen developer is a persona, not a title or targeted role. All citizen developers are business technologists. However, all business technologists are not necessarily citizen developers. If a development platform comes with user-friendly features, such as an easy drag-and-drop user interface, the in-house team could include business users trained to become citizen developers.
Business and technology leaders need to consider an automation operating model and for an in-house team, position descriptions, staff availability and cost. They also need to understand how easily the software solution can be integrated with existing applications. Does the integration need to be configured, or is the solution ready out of the box? Can automations and the code snippets be reused? These points can make a huge difference in development time and related costs.
Development and deployment costs equate to roughly 42% to 50% of the Total Cost of Ownership.
In conclusion, successful automation initiatives require careful strategic planning and superb tactical execution. Tactical success is grounded on a strong understanding of the applicability of automation in your business, the Total Cost of Ownership, the business case (ROI), automation methodologies and business problems to be solved.
Tackling these cost drivers will move your organization’s automation initiative forward, speed up implementation, reduce automation costs, address technology challenges and improve returns from the average, 24%-29%, to the extraordinary, greater than 110% across three years.
Amiseq’s Intelligent Automation practice can help you make sense of the Total Cost of Ownership. Learn more at www.amiseq.com or register for one of our Making Sense of the Total Cost of Automation webinars on our LinkedIn page. If you find this article insightful, please share, comment or like.
Author: Derek M. D’Onofrio | Director, Client Relations – Amiseq Intelligent Automation
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