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Robots threaten $4 billion worth of upcoming Australian outsourcing deals


Paul Smith

Australian outsourcing deals worth up to $4 billion are ripe for disruption in the next three years from a growing move towards robotic process automation and cloud-based options, a leading global consultancy has said.

David Snell the local boss of sourcing advisory firm Alsbridge, which has recently set up operations in Australia and New Zealand, said increasingly intelligent automation software would render thousands of workers on traditional outsourcing deals obsolete in coming years, and advised businesses to reconsider their plans, rather than simply re-signing on the dotted line to renew deals.

Mr Snell said some of the biggest outsourcing agreements coming up for renewal over the next 12 to 18 months include deals at Elders, the Australian Taxation Office, Perpetual, the Department of Defence, Australia and New Zealand Banking Group and Qantas.

He said more than 120 ANZ enterprises have large outsourcing contracts, worth approximately $2billion, due to expire during the next three years, with an additional 500 smaller contracts taking the pool to around $4 billion.

Article source: http://www.afr.com/technology/enterprise-it/robots-threaten-4-billion-worth-of-upcoming-australian-outsourcing-deals-20161111-gsn89i

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