Service providers deliver $160 Mn worth of RA services including design, consulting, development, system integration & managed services for enterprise customers in FY2017; Accenture, Genpact, Wipro, TCS & HCL among the top Robotic Automation (RA) Service Providers in the Global Rankings of RA Service Providers by Zinnov
Zinnov announced the release of its recent study titled, Zinnov Zones for Robotic Automation 2017. The launched study is aimed at helping enterprise customers understand the market landscape and identify the most relevant service providers in the Robotic Automation (RA) space. Zinnov defines Robotic Automation (RA) as the use of software robots for automation of business & IT processes, including both rule based deterministic use cases as well as complex use cases requiring cognition. Pegging the global Robotic Automation spend at USD 1.5-1.8Bn in FY2017, Zinnov study estimated the investments to grow at 60% CAGR to reach USD 6.5Bn by 2020. Lower cost of operations, higher efficiency gains, increased quality, compliance and scalability emerged as top drivers for enterprises to spend on RA.
In the study, Zinnov estimated a global addressable opportunity of USD 41.3 billion in the Robotic Automation (RA) market of which USD 19Bn is attributed towards Business Processes and USD 22Bn is attributed to Application Development &Infrastructure Management related processes. Top verticals including BFSI, Telecom, Retail & manufacturing account for 55% of the total addressable market for RA. The study further noted that several new age Robotic Automation platforms are enabling rapid adoption of RA technology, within enterprises and that the advent of intelligent automation along with rapidly evolving business models will continue to drive the spend growth momentum.
The report also highlighted that enterprises spent over USD 160Mn in FY 2017 on RA services with external service providers. Design & consulting accounted for USD 35-40 million, while development & integration services accounted for over USD 110Mn. The remaining USD 25-30Mn was spent on managed services, support & maintenance. 65% of the RA services investments by enterprises was concentrated with 10 service providers and 45% of all RA deals in FY17 were more than USD 500,000 in value, it added.
Additionally, the study also ranked 21 Robotic Automation service providers on the basis of their scale of robotic automation business as well as relevant capabilities covering factors such as RA talent base, intellectual properties, partnerships and client engagements. Accenture, Genpact, Wipro, TCS, & HCL came out as the leaders in this assessment. Besides the overall ranking, the exercise also includes an assessment of these service providers for their robotic automation service capabilities in priority industry verticals, including BFS, Insurance, Telecom and Retail.
Speaking about the report, Praveen Bhadada, Partner and Practice Head, Enterprise Digital Transformation at Zinnov said, “With over USD 1.5Bn in investments, Robotic Automation is emerging as one of the most prominent digital spending categories among enterprises. Today more than 70% of the manual, deterministic & rule based IT-BPM processes can easily be automated through software robots. A confluence of RA, Artificial Intelligence & other digital technologies is further enabling intelligent automation of some of the most complex of use cases as well and presents a huge opportunity for enterprises across verticals.”
