Growth in robotics will amount to 60% based on compound rates by 2020, and get to $60bn, says a report from Zinnov quoted in the Economic Times of India.
This will be an important number if the figures prove to be correct, since India’s growth in the outsourcing industry has historically depended on large numbers of less expensive people taking over from the more expensive Western alternatives. This system is under fire first from the Indian economy doing so well, so costs go up and some of the benefits to outsourcing clients go away as a result, and second from even cheaper robots.
The article reports on larger deals already happening in the field (we’ve also made mention of those in Professional Outsourcing Magazine, now retitled Intelligent Sourcing – more on that in tomorrow’s news) and on some of the acquisitions Indian companies are making in order to take advantage of this.
It remains true, however, that Indian business is going to face the same factors that led it to take successes from other countries in the past – others will be able to do things more cheaply and the emergence of robotics means it’s possible they’ll be able to do them less expensively than any human being.
The reaction from the world’s economies will have to be substantial; the reaction from a country that’s sold so much on price in the last couple of decades will have to be even more so.