-
Essay / Low cost labor versus automation
Just imagine the situation where the manager or supervisor does not have to negotiate with the union over wages. Instead, it can simply command the robot to perform the tasks. No questions asked. According to the wishes of the supervisor. This is exactly what is going to happen in the future in most manufacturing industries due to business automation. The debate between the need for automation and the availability of low-cost labor has been going on for a very long time. Most of those who oppose automation cite the social and economic impact of rapid job loss as their reason. But at the same time, these people do not realize the cost required to employ labor and the fact that every economy in the world is facing a declining talent pool (skilled people eligible for employment). Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get an original essay If you look at our country, the rise of the service sector in India's GDP is mainly attributed to the large pool of workers highly skilled and low cost of our country. workforce. Foreign multinational companies outsource their work to India, especially in the areas of business process outsourcing and IT services. Offshore IT outsourcing has increased due to the cost of offshore labor. This labor cost is a powerful draw for foreign customers, but many expect this labor cost advantage to diminish in the future. With increasing technological advancements and rising labor costs, searching for cheaper labor elsewhere will be a thing of the past. Offshoring will therefore have a lesser competitive advantage in the future. IT services companies are moving toward automation, cloud, Internet of Things, and more. And it's not just about IT services, the arrival of automation has spread to almost every sector across the world. According to a 2015 Grant Thornton Global Business Report, a survey of more than 2,500 executives in 36 countries, 56% of companies are automating their processes or planning to do so in the next 12 years. month. This is what is driving businesses towards automation. Businesses now face situations where investment costs are low while labor costs rise, increasing the clamor for automation. In manufacturing, automation has played an important role. Automation has allowed businesses to produce goods more cheaply through economies of scale. Automation can also lead to shorter delivery times and more efficient use of inventory and therefore cash flow. German automobile giant Volkswagen observed that by automating German factories, they achieved greater cost savings than by relocating the manufacturing unit to China. So far, the most significant contribution of automation in India has been seen in the area of supply chain and warehousing. Butler, an orange robot developed by GreyOrange, India's largest warehouse robotics startup, helps online retailers and logistics companies reduce delivery times and costs. GreyOrange has Flipkart, DTDC, online furniture portal Pepperfry and Delhivery as clients. These robots (as shown below) can also sort around 1.2 crore packages per month and even have the potential to