Why AI won’t replace offshoring any time soon...or will it?

The number of chargeable hours pushed offshore has increased 86% in the last three years, according to the ICAEW. And we can expect this trend to continue, despite the potential of AI.

I’d argue that firms are divided by how innovative (or not) their service model is today. One set of firms is following business as usual (yesterday’s model). The other is finding a role for offshored talent, managing them as a core part of the team, and seeing results. It’s this same mindset that spurs innovative firms to explore AI’s potential.

Both offshoring and AI can make running a firm more cost-effective (AI arguably more so, as offshoring is vulnerable to changing labour costs as markets get more saturated). Both boost productivity and enable a more continuous, even 24/7, service.

Forward-thinking firms won’t choose between offshoring and AI. They’ll find a way to use both to their full advantage. And the firms in the other camp - the ones who aren’t optimising and experimenting with ways to drive efficiency? Well, if they don’t act soon then they’re going to get left behind.