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When automation replaces offshoring
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PA Consulting’s Max Hamrén has been interviewed by Tidningen Balans about the changing economics of offshoring as automation reshapes how routine business tasks are handled.
The article uses Ludvig & Co’s decision to close its service centre in India as an example of a broader shift in the accounting industry. As digitalisation and automation mature, some companies are reassessing traditional offshore delivery models and instead bringing work closer to the core organisation.
Offshoring has fundamentally always been an economic question. In many cases, the cost is a quarter compared with Sweden. But that logic only holds as long as the tasks cannot be performed more cheaply in another way.”
According to Hamrén, the same types of standardised tasks that were once moved offshore are now often the first to be automated.
Standardised, non-strategic tasks are well suited for offshoring. But those are also precisely the tasks that technology can now handle on its own.”
Read the full article in Tidningen Balans in Swedish.
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