Automation could be a key challenge for programmable, lower-end tasks that are typically performed offshore. Companies looking to cut IT costs may choose to leverage automation, putting a significant portion of existing offshoring contracts at risk. Automation could potentially make location of work inconsequential and hence India-based work less important, severely denting Indian firms? competitive advantage.
Repeatable tasks in ?run-the-business? areas such as application maintenance, infra management and BPO represent 30-55% of revenues for Indian firms. Services at risk from automation are likely to face sharp pricing pressure from platforms or non-linear automation-led models. Disrupted firms likely to face marginalisation in vendor consolidation projects.
AWS and public cloud platforms provide CIOs a way to quickly scale-up IT workloads inexpensively at no capex and no long-term commitments.
