Another way to think: BPO business process outsourcing
In another blog I wrote about the future of work by its tools seeing the useful thing that we have now and thinking about what will be work in 5 to 10 years. Today I would like just to continue this reflection on a different scale.
At first BPO (Business process outsourcing) were part of big companies outsourcing their special needs like call-center, back office, marketing but progressively that part of the company were having increasing profitability and gaining other clients, they begun to work independently. The increase of the over all labor force cost in the 90s made those companies search for well-educated, formed pools of workers, so the flew away from America to India after India, Indonesia south Africa and now China.
Keep in mind that all that was possible because of telecommunication capability increase and computation speed. Now cloud computing…
Until the core
Companies start to outsource more and more core business from call center they outsource their IT, their security, and even research and development. As a result companies need less and less employees, “core” employees, inside.
Now what will be a company and what are the positive and negative consequences of that.
The half empty glass, or half full.
I will begin by the negative, by the increase of process automation, A.I. and other tools that we see in the earlier post companies will not need to be elephant size anymore. I think we will see in the near future restructurings in companies from big to smaller units, labor structure changing for something more unstable. Work will be managed by project. We will see restructurings, lay off.
If you look at the bright side of this, we can expect that strong potentials startups will be able to increase in size and in process rapidly, you will only need 10 core employee and after five years been able to compete with NTT or whatever big historical giant. You will need essentially finance power and credibility. Those will be the only tools to create your success.
I was also thinking like a joke, waiting for my train to come. Yes the core employees will manage all the company through A.I., automation and bpo, cloud computing. The leader of the company may not be a human being anymore either. That’s just me waiting for a train to come, an A.I. will lead a project. This A.I. will be, like 10 others under a “mother” A.I. to build a far more reaching project and I’m imagining the employee of the first company or even the outsourcing employee probably asking himself “why am I doing this task ?”and we’ll just think about absurd without any meaning task like put sand into a desert.
We can also imagine like in “Zatoichi” from Kitano, the brain of the over all process was a worker in the outsourcing company, the bottom of the bottom.