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AI Redefines Global Outsourcing: Vinay Mummigatti's 5 CEO Questions

AI's decision-making power is reshaping outsourcing. CEOs must ask: 'Do we still need middlemen?'

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AI Redefines Global Outsourcing: Vinay Mummigatti's 5 CEO Questions

Vinay Mummigatti, EVP of Strategy and Customer Transformation at Skan.AI, highlights the transformative impact of agentic AI on the global outsourcing industry, worth over $300 billion. He raises five key questions for CEOs to consider as the sector faces an existential moment.

Agentic AI, capable of making decisions, learning, and acting independently, is challenging the traditional laws of outsourcing. Talent scarcity, costco arbitrage, and human irreplaceability are being re-evaluated. Enterprises are questioning the need for outsourcing middlemen in the face of autonomous AI.

Mummigatti points to emerging operating models such as hybrid integration, direct automation, complete reimagination, and new ecosystem emergence. He compares this shift to Malcolm Gladwell's 'The Tipping Point', where an idea or trend spreads rapidly. The 'post-arbitrage era' is approaching, neutralizing traditional cost advantages of geographic outsourcing due to AI's universal availability.

Outsourcing companies are now racing to become 'AI-first service providers', aiming to stay relevant before clients realize they can bypass them. This transformation is led by innovators like Mummigatti, who is redefining the outsourcing landscape with agentic AI.

Vinay Mummigatti's insights underscore the profound impact of agentic AI on the outsourcing industry. As traditional cost advantages are neutralized, companies must adapt and consider new operating models to remain competitive. The future of outsourcing is being reimagined, with AI at the forefront.

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