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Digital labor promises major disruptions to outsourcing

As the processing power, cost, and performance of technologies that enable digital labor continue to advance at a dizzying pace, outsourcing buyers need to fully understand the coming changes – including tax, governance, and contractual implications – and take the steps necessary to avoid business disruptions. Like their clients, service providers need to move quickly to adapt their business models. Some may struggle to compete or even stay in business. 

By 2025, automation of work enabled by digital technologies is expected to supplement or replace the work of the preponderance of knowledge workers. 

Businesses that use outsourcing services – and the providers that deliver them – should begin identifying potential gaps, and taking the strategic and operational steps necessary to ensure continuity of services and, ultimately, that success is achieved as this new model becomes the standard.

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Digital labor promises major disruptions to outsourcing (PDF)


Additional insight

To discover more about the digital workforce and the dilemma it's creating for outsourcing, read

Bots in the back office: The coming wave of digital labor


To explore digital labor technologies and its ramification on businesses, listen to these podcasts:

Beyond building bots: Transformational digital labor solutions

Beyond building bots: Governing a bot environment

Moving the lever with digital labor


For the latest on digital labor and cognitive automation from KPMG, visit