Mumbai: COVID-19 outbreak is making permanent changes to the outsourcing industry amid ongoing lockdowns across the globe.
Several companies are looking forward to reshore the jobs amid a rise in nationalism and implementation of technology such as AI.
Among low-cost countries offering cheap backend office operations and call centre services, India traditionally has had the lion’s share. It employed millions of low and semi-skilled workforces as well. This, however, will come under intense pressure going forward as global competition for each new job rises exponentially with the recession.
The work from home scenario also poses a challenge for the outsourcing industry as most workers in developing countries, especially in India, don’t have a reliable broadband connection. Many employers are not financially strong enough to provide laptops and necessary IT infra to enable their workforce to work from home.
While at times long term investments to enable work from home culture don’t suit many companies amid uncertain business environment, at others, the nature of job – especially the confidentiality requirements prohibit the businesses to allow employees to work from home.
Meanwhile, only a few businesses have necessary infrastructure to enable employees to live at workplaces during crises. There have been plenty of reports of employees living in overcrowded halls and without basic sanitation facilities at times of emergencies.
All said and done, as businesses attempt to normalise once the pandemic is over, the biggest setback for BPO and outsourcing industry will come in the form of technology. Artificial Intelligence will replace millions of jobs at a rapid pace.
As has been proven many a time in the past, technology is less sensitive to disruptions when compared to manpower. Besides, they outperform humans on most occasions.
Most large enterprises will use coronavirus outbreak as an opportunity to further digitise and automate their business. This, of course, puts nearly four million jobs in the county and $150 billion in revenue at grave risk for which there is no light at the end of the tunnel at the moment.