AI Is Rewriting the Economics of Outsourcing

1 min read Original article ↗

Process management

by Abhinav Agrawal

June 5, 2026

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Summary.   

Generative AI is changing the economics that fueled decades of outsourcing growth by automating many routine, rules-based tasks that companies once sent offshore for labor savings. Rather than

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For more than three decades, outsourcing has rested on a simple economic idea: If work can be defined, standardized, monitored, and moved to a lower-cost labor market, someone else can often do it more cheaply.

Read more on Process management or related topics Supply chain management, Operations strategy, Globalization, Generative AI, International business and Corporate strategy