RPA is now the world’s fastest growing enterprise software category
RPA is easy to understand, deploy, control, and optimize – and that’s why it was recently crowned the fastest growing segment of the global enterprise software market.
According to Gartner’s latest forecast, RPA software spending rose to $ 846 million, up 63.1 percent last year. They are projected to hit $ 1.3 billion in 2019.
“The RPA market has grown since our last forecast, driven by the demands of the digital business as companies look for direct processing,” said Fabrizio Biscotti, vice president of Gartner Research.
“[…] RPA software is attractive to companies around the world because of its shorter deployment cycle times compared to other options like business process management platforms and business process outsourcing. “
According to Gartner’s study, RPA’s biggest customers are in the banking, insurance, telecommunications, and utility sectors, largely because it’s an easy way to integrate the various legacy infrastructure products they rely on for normal business operations.
Recently, the appetite for RPA appears to have grown among bankers and insurers in India. HDFC has found a use case for its loan applications, Yes Bank is leveraging the technology to automate payment processes, and ICICI Lombard General Insurance is leveraging RPA for a variety of processes including quote and policy issuance and claims handling.
ICICI Bank in India is another powerful use case that has been widely quoted by the media.
The banking and financial services giant, with several subsidiaries including ICICI Bank Singapore and ICICI Bank Canada, recently announced that it has deployed around 750 RPA bots that process nearly 2 million transactions per day.
While no cost or time savings have been reported yet, it is interesting to see that human error has decreased significantly.
“These robots are used in a variety of business areas and LoBs, including private, wholesale, foreign exchange, treasury, agricultural and international operations. Most of the robots used were developed in-house, ”said Anita Pai, Senior GM and Head of Operations at ICICI Bank India.
Anand Singh Chandel, Senior Vice President of DBS Bank, recently spoke about how his company is using RPA to eliminate the slow manual processes (with lots of potential for human error) that can lead to a poor customer experience.
“Our solution was robotic process automation (RPA), in which software bots can emulate the execution of clearly defined, repeatable processes by humans. RPA would not only speed up our processes, it would also help to keep automation costs low by reusing developed automation objects, ”explained Chandel.
What’s interesting is that RPA is incredibly efficient when it comes to putting legacy systems together – which makes it particularly attractive to banking and financial services institutions around the world.
“The ability to integrate legacy systems is the main driver for RPA projects. By leveraging this technology, companies can quickly accelerate their digital transformation initiatives while unlocking the value associated with previous technology investments, ”said Biscotti.
While none of the technology giants are among the top RPA vendors right now, Gartner anticipates the landscape and competition will change over the next three years as some of the largest software vendors begin to break into the market and expand their existing customer base use it to lead a win.
The next few years should be incredibly exciting, according to Gartner, as new RPA use cases come into play and larger vendors create bespoke solutions for customers.
| @ Soumikroy
Soumik Roy is a business and technology specialist. It helps small and medium-sized businesses understand what is most important to the growth and success of their business.