icatalystAI and automation are the waves of the future.
Advances in these technologies are allowing businesses to automate processes never thought possible before.
At the same time, outsourcing is making it easier and more affordable for businesses to develop resources outside their main operations area.
Check out our guide below to learn the difference between outsourcing and business automation.
What is Business Automation
Business process automation uses advanced software and AI techniques to improve your staff’s operations. They provide you with useful organizational and functional tools that enhance their day to day work.
Some examples of this include:
- Automated Database Management
- Lead Generation
- Records Management
- Accounts Payable Solutions
Pros
One of the biggest benefits of automation is the ability to enhance the productivity of individual employees. Instead of having lots of data entry clerks or processors you have an AI that does the majority of the work. This also lets you cut costs by eliminating redundant positions.
Process automation cuts down on the amount of drudgery you have to do. There’s no reason you need an employee to order up a report when it can be delivered automatically to your inbox by a process.
Augmenting humans in the equation also helps eliminate human error.
Cons
The biggest downsides to the automation process are the ramp up and design phase. You have to figure out what you actually need the software to do before it can do it.
Even then there’s a process of implementation and integration to go through. At the end of it all, you have a complex piece of code that must be maintained.
There’s also a natural tendency for your existing employees to fear their own redundancy. Nothing like automation to convince your workers they’ll all be out of a job soon.
AI is great, but it’s still overall less flexible than a human worker. Some process automation can be a bit rigid.
What is Outsourcing
Traditional outsourcing involves using outside resources to perform a segment of your business. This is extremely common for things like call centers, software development, and other sectors of business.
In most cases, a company will hire another to provide a specific service. Often they’ll assign one of their own managers to oversee operations.
Pros
Companies can take advantage of lower human capital costs overseas or at home. Through a contractor relationship, you eliminate the need to personally pay benefits.
You also have access to a scalable resource that you can add onto as needed.
Cons
It can be difficult to find outsourced resources that are as dedicated as your own employees. This is especially true the more technical your outsourced task is.
It’s also difficult to maintain quality standards and controls. Even if you send your own manager to oversee operations you have less direct control.
Automation vs. Outsourcing
In the end, you have to consider your organization’s goals. Business automation is all about enhancing the productivity of your employees. Outsourcing helps you cut costs and contract out tasks that aren’t core to your business.
If you’re interested in supercharging your business’ operations, click here to learn about our business process automation services.
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