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Cliff Justice on Automation’s Challenge to Labor Arbitrage

An article from Nearshore Americas magazine featuring KPMG's Cliff Justice, Principal in KPMG’s Innovation & Enterprise Solutions team.

There has been a lot of buzz about the value that increased automation brings to outsourcers and their clients. But not all automation is created equal: it comes in many forms, and providers are at different maturity levels.

“Many outsourcers are developing an automation strategy, but there is no clear leader, and the playing field is level,” says Cliff Justice. “The cost and capabilities of the technology are reaching a level which makes it competitive with offshore labor.”

That presents a challenge to providers who have been too reliant on labor arbitrage. While labor costs are expected to affect the competitive landscape for years to come, there is no doubt that innovative automation strategies can provide ongoing, repeatable value. And once in place, the initial investments in automation can deliver huge savings, with labor costs effectively irrelevant.

Read Cliff Justice on Automation's Challenge to Labor Arbitrage in Nearshore Americas magazine.


For more on automation's effect on sourcing and service delivery, explore our Cognitive Process Automation articles, videos, and podcasts.