A recent HFS study of 1000 major global enterprises reveals what is happening with stark brutality: Six out of ten enterprise leaders plan to replace some or all of their professional services with some form of AI within the next 3-5 years.<\/p>\n
![\"\"](\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/11\/60-percent-of-enterprises-looking-at-S-a-S-e1731263837940-1024x578.png\")
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Services will continue to reduce their reliance on labor as automation creates more efficiency and productivity<\/strong><\/span><\/h3>\nThe reality is that most people-based services, once they become predictable and routine, eventually become automated. This increasing sophistication of AI tools is enhancing the whole service efficiency and personalization experience. Once implemented effectively, these Services-as-Software<\/em> solutions become faster to manage, cheaper to maintain, and more scalable to cope with volumes of demand.<\/p>\nFor example, fully automated passport gates at airports now allow for higher volumes of passengers to clear immigration much quicker than previously and for more airlines to land their planes at the airport.\u00a0 This leads to more profitability for the airport, more business for the airlines and people to enter the country more expediently. Similarly, self-checkouts at grocery and convenience stores are enabling many more customers to have their purchases processed simultaneously, securely, and faster, which creates the ability to handle volume spikes without layering on unnecessary staffing costs to cater to demand.<\/p>\n
Software-driven services can also improve the customer and employee experience<\/strong><\/span><\/h3>\nNow the airport can redeploy its people to manage issues at the passport gate when needed, to help shepherd them into the right lines, and also to provide assistance to elderly or disabled people.\u00a0 The whole experience is improved.\u00a0 Similarly, the convenience store can redeploy its staff to help customers find the products they need, to ensure inventory is better managed, to help manage in-store promotions, and to ensure the store is kept clean and presentable.\u00a0 Again, the customer and employee experience should be vastly improved, and the automation of the rote work allows more focus on improving the speed and quality of the whole business proposition.<\/p>\n
While fairly simplistic, these are current real-world examples of how software embedded in enabled machines can not only replace the dependence on people to meet outcomes, but also enable organizations to scale their services without adding linear<\/em> cost.\u00a0 The only differences with the emerging Services-as-Software model are the improvements in botifying<\/em> routine white-collar work that was previously too challenging to automate due to limited technologies such as RPA and the absence of our ability to mimic and predict human behavior with the increasing sophistication of GenAI and Agentic software.<\/p>\nServices and software are equally exposed to full automation and AI<\/strong><\/span><\/h3>\nEnter the world of IT and business process services, and similar trends are in play as routine IT maintenance, HR, procurement, accounting, and customer service work are becoming much easier to replicate in advancing GenAI and Agentic software, supported by public and private cloud capabilities to secure and scale transaction volumes.<\/p>\n
You only need to observe the rapid decline of growth in the labor-intensive services sector and the determination of enterprise customers to renegotiate both their services and software contracts to understand this dynamic is now in full swing:<\/p>\n
![\"\"](\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/11\/Traditional-IT-services-model-already-breaking-down--1024x576.png\")
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Organizations face mounting pressure to deliver results faster, at scale, and with limited resources\u2014all while managing increasingly complex technology ecosystems. The convergence of services and software meets that demand by transforming traditional consulting and outsourcing into scalable, automated solutions.<\/p>\n
The 2030 destination is Services-as-Software, where the focus is on service provision performed by AI, not people<\/span><\/h3>\nWith the application of software platforms, Agentic solutions, and, ultimately, autonomous services mimicked by software, we believe we are on a fast track to reach an autonomous, human-lite nirvana of scalable, profitable, and affordable services by 2030:<\/p>\n
For example, fully automated passport gates at airports now allow for higher volumes of passengers to clear immigration much quicker than previously and for more airlines to land their planes at the airport.\u00a0 This leads to more profitability for the airport, more business for the airlines and people to enter the country more expediently. Similarly, self-checkouts at grocery and convenience stores are enabling many more customers to have their purchases processed simultaneously, securely, and faster, which creates the ability to handle volume spikes without layering on unnecessary staffing costs to cater to demand.<\/p>\n
Software-driven services can also improve the customer and employee experience<\/strong><\/span><\/h3>\nNow the airport can redeploy its people to manage issues at the passport gate when needed, to help shepherd them into the right lines, and also to provide assistance to elderly or disabled people.\u00a0 The whole experience is improved.\u00a0 Similarly, the convenience store can redeploy its staff to help customers find the products they need, to ensure inventory is better managed, to help manage in-store promotions, and to ensure the store is kept clean and presentable.\u00a0 Again, the customer and employee experience should be vastly improved, and the automation of the rote work allows more focus on improving the speed and quality of the whole business proposition.<\/p>\n
While fairly simplistic, these are current real-world examples of how software embedded in enabled machines can not only replace the dependence on people to meet outcomes, but also enable organizations to scale their services without adding linear<\/em> cost.\u00a0 The only differences with the emerging Services-as-Software model are the improvements in botifying<\/em> routine white-collar work that was previously too challenging to automate due to limited technologies such as RPA and the absence of our ability to mimic and predict human behavior with the increasing sophistication of GenAI and Agentic software.<\/p>\nServices and software are equally exposed to full automation and AI<\/strong><\/span><\/h3>\nEnter the world of IT and business process services, and similar trends are in play as routine IT maintenance, HR, procurement, accounting, and customer service work are becoming much easier to replicate in advancing GenAI and Agentic software, supported by public and private cloud capabilities to secure and scale transaction volumes.<\/p>\n
You only need to observe the rapid decline of growth in the labor-intensive services sector and the determination of enterprise customers to renegotiate both their services and software contracts to understand this dynamic is now in full swing:<\/p>\n
<\/p>\n
Organizations face mounting pressure to deliver results faster, at scale, and with limited resources\u2014all while managing increasingly complex technology ecosystems. The convergence of services and software meets that demand by transforming traditional consulting and outsourcing into scalable, automated solutions.<\/p>\n
The 2030 destination is Services-as-Software, where the focus is on service provision performed by AI, not people<\/span><\/h3>\nWith the application of software platforms, Agentic solutions, and, ultimately, autonomous services mimicked by software, we believe we are on a fast track to reach an autonomous, human-lite nirvana of scalable, profitable, and affordable services by 2030:<\/p>\n
Services and software are equally exposed to full automation and AI<\/strong><\/span><\/h3>\nEnter the world of IT and business process services, and similar trends are in play as routine IT maintenance, HR, procurement, accounting, and customer service work are becoming much easier to replicate in advancing GenAI and Agentic software, supported by public and private cloud capabilities to secure and scale transaction volumes.<\/p>\n
You only need to observe the rapid decline of growth in the labor-intensive services sector and the determination of enterprise customers to renegotiate both their services and software contracts to understand this dynamic is now in full swing:<\/p>\n
<\/p>\n
Organizations face mounting pressure to deliver results faster, at scale, and with limited resources\u2014all while managing increasingly complex technology ecosystems. The convergence of services and software meets that demand by transforming traditional consulting and outsourcing into scalable, automated solutions.<\/p>\n
The 2030 destination is Services-as-Software, where the focus is on service provision performed by AI, not people<\/span><\/h3>\nWith the application of software platforms, Agentic solutions, and, ultimately, autonomous services mimicked by software, we believe we are on a fast track to reach an autonomous, human-lite nirvana of scalable, profitable, and affordable services by 2030:<\/p>\n
<\/p>\nWith the application of software platforms, Agentic solutions, and, ultimately, autonomous services mimicked by software, we believe we are on a fast track to reach an autonomous, human-lite nirvana of scalable, profitable, and affordable services by 2030:<\/p>\n
![\"\"](\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/10\/Services-and-Ops-Tech-Vision-2030-.jpg\")
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