The world is entering its fourth Industrial Revolution, commonly referred to as Industry 4.0. While Western economies ruled the first three industrial revolutions (steam, electrification, automation), the economies that will dominate a 4.0 World are unknown. The future is up for grabs.
Business Process Automation
The traditional view of outsourcing has tended to see cost reduction as one of the primary drivers for any customer. The idea that the ‘total cost of ownership’ of a particular business function over the term of the outsourcing contract should be lower is very often part of the business case. Similarly, seeing outsourcing as a means of transforming a collection of assets on the balance sheet into a recurring service charge, and reducing (or at least apparently reducing) capital costs is another common refrain at the outset of deals.