Algorithm arbitrage is coming for India’s outsourcing industry
Автор: Johan Steyn
Загружено: 2026-03-10
Просмотров: 34
Описание:
Article link: https://open.substack.com/pub/johanos...
India’s outsourcing industry was built on labour arbitrage: moving work to where skilled people were cheaper. AI introduces a new kind of competition: algorithm arbitrage, where routine work is automated at near-zero marginal cost, instantly, and at scale. That threatens the traditional outsourcing value proposition, especially in high-volume service lines such as basic support, testing, maintenance, document-heavy back office work, and repetitive coding tasks. The risk is not only that providers adopt AI, but that clients deploy AI internally and simply buy fewer outsourced hours.
This article argues that the winners will be the firms that pivot from selling time and headcount to selling verified outcomes, with stronger governance, quality controls, and trust. The challenge is also social: if AI consumes entry-level tasks, the industry must redesign how young people gain experience and progress, rather than treating them as a disposable layer of labour. India’s outsourcers still have the talent and scale to lead, but only if they reinvent delivery and contracts fast enough, and if services economies like South Africa learn the lesson early: cost alone won’t be a strategy in an AI-first world.
Повторяем попытку...
Доступные форматы для скачивания:
Скачать видео
-
Информация по загрузке:
