Of course, in almost all cases the "observer" is a machine, and "collapse" is nothing else than the adaption of the probabilistic description by an observer given new information.
According to relativistic QFT there cannot be an instantaneous collapse, i.e., a instaneous causal effect over all space, due to a local interaction between the system and a measurement device.
It's also clear from the mathematical formalism. Suppose there is a system in an arbitrary state ##\hat{\rho}## (statistical operator) and now you measure an observable ##A##, described by a self-adjoint operator ##\hat{A}## and eigenstates ##|a,\alpha \rangle##. Here ##a## runs through the spectrum ("eigenvalues") of the operator ##\hat{A}## and ##\alpha## is some label indicating the orthonormalized basis of the eigenspace ##\text{Eig}(\hat{A},a)## of this eigenvalue.
Now suppose you know you have measured ##A## on the system in some non-destructive way. Now, consider two scenarios:
(a) We know that the measurement of the above kind has happened but we don't have read off the measured value.
(b) We know that the measured value is ##a## (one of the spectral values of ##\hat{A}##).
What are the states to be associated in this two scenarios?
For case (a) we know that the system has been measured but we don't know which value has been found. Then according to the orthodox laws we now have to describe the state by the statistical operator
$$\hat{\rho}'=\sum_{a,\alpha} P_{a,\alpha} |a,\alpha \rangle \langle a,\alpha| \quad \text{with} \quad
p_{a,\alpha}=\langle a,\alpha|\hat{\rho} a,\alpha \rangle.$$
For case (b) we know that the measured value is ##a##. Then we have to use the statistical operator
$$\hat{\rho}''=\frac{1}{Z} \sum_{\alpha} P_{a,\alpha} |a,\alpha \rangle \langle a,\alpha|, \quad \text{with} \quad Z=\sum_{\alpha} P_{a,\alpha}.$$
In the extreme case that ##\mathrm{dim} \mathrm{Eig}(\hat{A},a)=1## you get a pure state ##\hat{\rho}''=|a \rangle \langle a|##.
One should note that the two associtations of the "state after the measurement" result from the same physical manipulations done to take the measurement but also depend on what we know about the system from this measurement, as usual in applied probability theory (statistics).