Intelligent Automation: How it is Enabling Business Model Shift in BPO Industry
With increased adaptation of Digital Technologies; smart algorithms, BOTs and AI tools have made their way into the mainstream of organizations to help solving business challenges. Combining the power of AI and Analytics, the “intelligent automation” BOTs (Or Robotic Process Automation) are creating an interesting playground in Indian Services sector; which is largely a higher cost talent pool and traditionally been striving to reduce the costs.
RPA is revolutionizing back office processes and disrupting the BPO industry by replacing repetitive tasks and promoting a Virtual Digital Workforce.
As an industry, BPOs are resonating with the higher expectations from the customer and limitations labor arbitrage brings in and therefore constantly innovating newer ways to stay relevant to the customer’s business, increase productivity, reduce costs and gain competitive advantage by finishing core operations quickly and accurately. RPA largely tries to address these business challenge by presenting an efficient and accurate alternative. This has enabled BPO industry to manage processes across global industries at much reduced price; perfectly balancing the digital and physical worlds.
Different Use Cases of Intelligent Automation:
A classic candidate for RPA use case would be one where there are fundamental characteristics like.
- Set of actions, which are consistent, with the same step being performed repeatedly.
- Template driven operation, with data being entered into specific fields in a repetitive manner.
- Rules-based processes, to allow decision flows to alter dynamically.
The use of RPA solutions is becoming increasingly common among mature BPOs allowing further innovation and progress. Some of the most commonly found use cases could be;
- RPA shortens the long span of inefficiency that builds up around enterprise applications and back office systems. Processes such as FAO (finance and accounting outsourcing), HR management, procurement etc. can be automated using RPA.
- Smart Orchestration platforms intelligently analyze the nature of the call and available capacity; before making the decision if this should be redirected to a BOT or Human Being, resulting in to considerable reduction in cost of operation.
- Intelligent Voice Recognition BOTs are being used to analyze the quality of the conversation between a call center and to the customer; and have ability to automatically escalate. This drastically improves the customer experience and on-time issue resolution.
- Enterprises can also supercharge their automation efforts by injecting RPA with cognitive technologies such as ML, speech recognition, and natural language processing, automating higher-order tasks that in the past required the perceptual and judgment capabilities of humans. This game changer innovation can be perfectly termed as “Intelligent Automation”.
Tremendous Business Gains:
BPOs that implement RPA can achieve drastically improved productivity levels since BOTs can work around the clock, analyzing and extrapolating data efficiently. Most importantly, BOTs are unsusceptible to human error – thereby drastically improving the accuracy of operations.
- Reduced Cost: Hiring, Training, Attrition and Other Operational Costs are reduced due to building Digital Workforce.
- Faster ROI: RPA Implementation can efficiently and quickly be transitioned to production; there by eliminating delays and arrive at faster ROI.
- Flexibility & Scalability: Digital Workforce can handle increase in scale without additional ramp-up time and resource constraint, supporting both organizational growth and seasonality.
- Accuracy and Quality: Digital Workforce reduces the operational risks as its perforce is consistent and doesn’t deviate from defined business rules, committing no data and security errors.
- Improved Customer Experience: Due to timely and accurate processing of the tasks, Digital Workforce will help improve the customer experience significantly.
- Data Security and Privacy: Digital workforce reduces the operational cost and security threat; by eliminating the need for infrastructure segregation and need of multiple layers of security access.
- Compliance and Governance: RPA can contribute to more effective and efficient compliance processes for companies. By implementing the role based accesses and responsibilities, bot can adhere the policies and procedures which will enhance the governance over the processes.
Outsourcing Service Providers, that largely used technology for workflow management and accounting; would have to inject strong elements of digital interactions, Digital Workforce, Analytics and Intelligent platforms in order to be more efficient and for improved customer experience. Business models are evolving to foster deeper relationships with end clients- helping them to embrace the digital revolution, co-create IPs and help them to cut costs. As business models anchored around the business impact, revenue generation and innovation, demand side economies of scale become more pervasive, laggards risk digital exclusion and likely fatality.