Zinnov Says RPA Space Set to Explode, Growing at a Mammoth 37% to Reach $11 Billion+ by FY2024

Zinnov, a global management and strategy consulting firm, released the first of its kind global ratings of Robotic Process Automation (RPA) Platform Companies, titled, ‘Zinnov Zones for RPA Platforms – 2019’. The study analyzed the global RPA spend across enterprise segments and evaluated RPA platform companies for their scale and capabilities. Zinnov defines RPA spend as the enterprise spend on proprietary RPA platforms, RPA assets developed in-house, and related in-house and outsourced RPA services, including bot configuration, management, deployment, support, and training.

The study highlighted that the total worldwide addressable market for RPA stands at $50 Bn whereas enterprises spent just over $2.3 Bn on RPA in FY2019. Further, the enterprise RPA spend is expected to grow at 37% annually, to reach over $11 Bn by FY2024. Banking & Financial Services (BFS), Insurance, Healthcare, and Telecom & Media emerged as the leading industries for RPA adoption and accounted for over 70% of the total market.

Historically, RPA has focused on automating repetitive and administrative tasks such as Finance & Accounting, Human Resources, and call center/IT service desk. However, this automation focus is increasingly shifting towards enabling a wide range of business transformation use cases across enterprise value chains. The embedding of AI/ML within RPA tools is enabling software robots to mimic human behavior and handle complex use cases like the end-to-end employee onboarding process, which was earlier not possible without human intervention. While top RPA platforms are building native Intelligent Automation capabilities in the platform, collaboration with technology majors such as Microsoft, Google and IBM, and other specialist vendors to leverage their strengths in AI/ML, OCR, NLP, etc., is increasingly becoming the norm.

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The study estimated that the total global RPA talent has increased to over 210,000 professionals in FY2019, with India and the US emerging as major RPA talent hotbeds. While both India and the US account for >25% share of this talent pool individually, India is growing at a much faster rate compared to the US and will become the most prominent geography for RPA in the next 12months. The study also revealed that 34% of large global enterprises have already set up one or more RPA center of excellence (CoEs), of which 80% are in the US or India. Further, over 250 global MNCs currently run their global RPA charters from their Global In-house Centers (GICs) in India.

The Zinnov study also identified that attended RPA (bots working together with humans) accounts for ~30% of the market share and is growing at a steady pace. RPA platform companies with traditional strengths in unattended RPA (fully automated with no human intervention) are transitioning into automating attended scenarios and vice versa. Coupled with Cognitive RPA, this will give rise to truly Hybrid RPA Platform players who are able to efficiently automate both the front office and back office processes.

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Security & Governance is expected to be another key differentiator as enterprises look to address security-related concerns at multiple levels – starting from the infrastructure security which ensures securing the application or SDLC, to looking at information security and ensuring adherence to ISO27001 standards, to also looking at UI level security which includes identity and access management, and finally addressing governance by employing comprehensive audit trails and bot control rooms. RPA platforms are already investing heavily in adhering to best in class industry standards – including partnering with specialized digital security providers, getting relevant certification and accreditations, and implementing robust security measures.

‘Zinnov Zones for RPA Platforms’ rating analyzed 14 Global RPA Platform companies on their ‘RPA Prowess’ and ‘Scalability,’ to position them in 4 Zinnov Zones (‘Nurture Zone,’ ‘Breakout Zone,’ ‘Execution Zone,’ and ‘Leadership Zone’). Apart from the overall ratings on RPA Platforms, the analysis also provides a relative positioning of Platform Companies across 4 key segments –Unattended RPA, Attended RPA, Cognitive RPA, and Security & Governance. Automation Anywhere, UiPath, Blue Prism, and WorkFusion have been identified as leaders for overall RPA Platforms.

Speaking at the launch of the study, Praveen Bhadada, Partner & Practice Head – Digital Transformation, Zinnov, said, “The RPA space is becoming riveting as the exponential growth in this space is catching the attention of global enterprises, Tech Giants, niche ISVs and Service Providers alike. Over 5000 enterprises worldwide are currently deploying RPA in some form, and while the initial traction has been beyond impressive, the next wave of growth will only come in as enterprises scale their RPA adoption significantly. The BPM outsourcing industry is already getting disrupted due to RPA, and IT & Engineering workloads are also likely to attain automation maturity soon. Given the massive opportunity, we expect the RPA industry to generate several technology Unicorns over the next 5 years.”

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