Young woman, surrounded by computer monitors in a dark office.

Onshore, offshore, agent: welcome to the modern, three-pronged workforce

AI is emerging as a third workforce pillar — alongside onshore and offshore — reshaping how organizations structure roles and deliver value.


In brief
  • The workforce is evolving beyond location-based models to include AI agents as a third strategic option.
  • Leaders must rethink workforce planning based on automation readiness, not geography.
  • Upskilling, physical AI readiness and thoughtful integration of human-machine collaboration are key to long-term success.

For years, organizations looking to optimize operations and reduce costs have faced a binary choice: retain business functions within their own four walls or shift them to other geographic locations that offer more cost-effective labor and resources.

Not anymore. Rather than decide simply between onshore and offshore, leaders now have a third option: to reallocate tasks, business functions and job roles to artificial intelligence (AI). In the age of automation, the most successful workforces will therefore be the ones that take a three-pronged approach built on human and machine collaboration.

 

New workforce, new workforce strategy

But what does this look like in practice? First and foremost, it requires leaders to evolve their workforce planning. Rather than veer immediately toward outsourcing to overseas global capability centers (GCCs), the question US organizations should ask is: “What if we transfer this to a machine agent?” This redefines the workforce strategy not in terms of location, but by automation readiness.

 

 

Of course, leaders must still be judicious. In many cases, human expertise remains essential. Roles that rely heavily on emotional, behavioral and creative thinking are still done better by people — as are those that carry sensitive ethical, reputational or relationship-based considerations.

The most successful workforces will be the ones that take a three-pronged approach built on human and machine collaboration.

Even the administrative tasks so often discussed in the context of automation shouldn’t be viewed as a given. Are we at a point where a procurement negotiation or contract agreement could be handled AI agent to AI agent? Yes, probably. But would you want to give these processes over to technology? That depends on your firm’s partner ecosystem, risk tolerance and overall AI maturity level.

When to build, when to buy

The next critical consideration is timing. As major software vendors embed new capabilities into their platforms, some functions may soon come pre-equipped with AI. Companies must determine whether to invest in developing their own AI tools today — or wait and assume these will be built in tomorrow.

The challenge for leaders, then, is to identify where the business opportunity is so big that it justifies instant investment in creating digital agents — and where it makes more sense to wait for out-of-the box capabilities. A good idea is to establish a cross-functional team that can deconstruct all of the opportunities for immediate AI transformation and then place strategic bets based on your specific operating environment.

For example, should companies integrate AI agents into their finance processes now or wait until their enterprise resource planning (ERP) platforms offer plug-and-play agent capabilities in a few years? In the latter case, an offshore GCC may therefore be a smarter short-term option. On the other side, how long will you need to wait for these capabilities and how customizable will they be for your operations? The answer will be different for every firm and every capability area; the key is to be asking the question.

The rise of physical AI

Beyond software, another frontier is emerging — physical AI. From humanoids and quadrupeds to drones and autonomous vehicles, what were once futuristic prototypes are rapidly becoming viable business tools. This, in turn, opens up fresh opportunities for automation, particularly in sectors like manufacturing, energy and life sciences.

But it brings challenges too. Few companies possess the necessary skills to harness physical AI in-house. Demand is therefore growing for embedded systems engineers, robotics engineers and computer vision professionals. These are not capabilities you can simply upskill. They represent entirely new disciplines requiring specialized training and expertise.

Organizations must therefore decide whether to build those capabilities through their recruitment and retention programs or rent them by engaging boutique firms or professional services vendors. Either way, a future-proofed talent strategy should now include physical AI readiness as a factor in workforce planning.

Don’t wait — upskill now

There is a more pressing skills mandate too: the current workforce. While the type of knowledge and capabilities employees need will undoubtedly shift in the long term, the most effective workers in the short term won’t necessarily be new hires.

Instead, they will be existing team members who already know your culture, systems and clients — and learn how to deploy AI to augment their performance. Companies must therefore empower employees to integrate AI into their workflows today, boosting productivity and competitiveness straightaway.

How they do so is up to them — and a divide is emerging between the carrot and the stick. Some organizations are incentivizing workers to embrace and innovate with AI through rewards, recognition and career advancement. Others are more hard-line. One chief digital officer described reducing their finance team by 20% before redistributing tasks among the remaining 80% who are expected to deliver the same outcomes by leveraging AI. Other organizations have made headlines by mandating that no new hires will be approved unless it can be demonstrated that the tasks cannot be performed by AI.

Both approaches have their pros and cons — and again, it’s up to leaders to decide what best suits their business strategy and culture. Whichever path they take, though, it’s clear that the integration of AI into everyday work requires a broader rethinking of performance management. Whether now or in the future, building AI usage into KPIs and promotion criteria will be key to career growth. Tracking who’s using AI — and how effectively — will become standard practice.

AI isn’t just a tool — it’s a catalyst for rethinking what work and job roles should look like.

Dividing and conquering

Put simply, the makeup of the modern workforce has changed and will continue to change dramatically in the next few years. For businesses looking to get ahead, now is the time to move from static job roles to dynamic, AI-augmented functions; to understand where AI can create real value today and where it will be table stakes tomorrow; and to begin upskilling, hiring and restructuring their talent pool.

AI isn’t just a tool; it’s a catalyst for rethinking what work and job roles should look like. Onshore. Offshore. Agent. The organizations that embrace this new three-pronged workforce will be well placed to lead not just in operational efficiency but in innovation, resilience and long-term growth.

This article was originally published on FastCompany.com.

Summary 

AI is no longer just a tool — it’s a third workforce pillar. Organizations that embrace a three-pronged model of onshore, offshore, and agent will be best positioned to lead in innovation, resilience and long-term growth.

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