As this process of local labor arbitrage plays out the net result will be a world with many more consumers having more local currency to spend on products and services that are increasingly more complex.
Discussions across client boardrooms have shifted from just cost containment and labor arbitrage to the delivery of enhanced customer experience, automation, value-added services (such as multichannel and analytics services), scalability, quality of service, and more innovative ways of addressing the increasing levels of complexity in their business, Singh and Manusama predict.
Neoris has brought nearshore outsourcing to a new level, from mere labor arbitrage - which barely generates added value to the business, the communities and the people involved- to a model where leading Latin American professionals join counterparts in the US and Europe to deliver key projects around the world via remote intelligent workgroup technology.
Through this partnership, Genpact will be one of the first leading business process services companies to adopt mass scale rapid automation, an emerging trend that will drive significant levels of efficiency beyond labor arbitrage for BPO providers and their clients.
Suppliers that fail to fully exploit the labor arbitrage of low-cost labor markets, as well as new technologies, will become the dinosaurs in this new era of high-value outsourcing," Bendor-Samuel added.