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The outsourced RPA services market for FY2019 is estimated to be at $570M - $600M
Total installed talent pool with outsourced RPA Service Providers stands at ~52,000 globally
India emerges as a major hub with ~55% share of the global RPA Service Provider talent
BANGALORE, July 17, 2019 /PRNewswire/ -- Zinnov, a leading global management and strategy consulting firm, announced the release of its report on annual global ratings of Robotic Process Automation (RPA) Services Companies today. The study titled, 'Zinnov Zones for RPA Services - 2019,' is aimed at helping enterprise customers understand the evolving market landscape of outsourced RPA services and enable them to make informed decisions on selecting the right service partners. Under RPA services, Zinnov considers RPA advisory, bot development and configuration, deployment, management, support, and training as the major scope of work. The study evaluated 22 major RPA services companies for their scale and capabilities in these areas.
The Zinnov report highlighted that in FY2019, enterprises spent just over $2.3B on RPA globally, of which $570M - $600M was spent on outsourcing to RPA Service Providers. Further, Zinnov expects the outsourced RPA services market to grow at a massive 47% annually to reach a staggering $4B in the next five years. The increasing focus on intelligent automation, deepening technology partnerships, investments in IP creation and Center of Excellence (COE) set up around RPA is enabling outsourced Service Providers to rapidly scale their market presence. As a result, the total installed RPA talent pool with Service Providers is already in excess of 52,000, with India commanding a ~55% share of the same globally.
The study found that the top 4 industries including Banking, Financial Services and Insurance (BFSI), Healthcare, Retail & CPG, and Telecom & Media accounted for approximately 80% of the total spend on RPA services in FY2019. BPM processes continue to dominate the outsourcing RPA services market with over 90% market share, while IT processes account for a minuscule 9% share. Further, there was negligible RPA adoption within the ER&D outsourcing services in FY2019.
The study also identified that ~40% of RPA deals in the last 12 months were aligned to 'intelligent automation,' with a focus on leveraging AI/ML techniques to handle unstructured data and complete tasks with human-like decision-making. Further, one-third of all enterprise RPA engagements with Service Providers had an annual contract value of less than $50,000, with one-in-five customers scaling their RPA outsourcing engagements over $1M annually. 25% of all deals in FY2019 also had some form of outcome-based pricing woven into the service contract.
'Zinnov Zones for RPA Services' rating analyzed 22 Global RPA Services 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 Services, the analysis also provides a relative positioning of these Companies across 6 key segments - Cognitive RPA, BFSI, Healthcare, Retail & CPG, Telecom & Media, and Travel & Hospitality. Accenture, IBM, TCS, Cognizant, HCL, Wipro, Tech Mahindra, and Atos Syntel have been identified as leaders for overall RPA Services.
Speaking at the launch of the study, Praveen Bhadada, Partner & Global Head - Digital Transformation, Zinnov, said, "As it stands today, RPA is already a $50B+ addressable opportunity that is increasingly becoming hard for Service Providers to ignore. The exponential growth in this segment is forcing the services companies to participate in this opportunity more seriously by focusing on micro-vertical use cases, exploring M&A opportunities, and co-investing with customers on setting up dedicated Intelligent Automation COEs. Services companies have already deployed 60,000+ bots for their customers, and this is expected to grow rapidly as providers scale their RPA practices."
Founded in 2002, Zinnov is a global management and strategy consulting firm, with presence in Silicon Valley, Houston, Bangalore, and Gurgaon. Over the past 17 years, Zinnov has successfully consulted with over 250+ Fortune 500 customers to develop actionable insights that help them in their transformation journeys. With core expertise in Product Engineering and Digital Transformation, Zinnov assists clients by:
Providing research and strategy consulting for Technology Service Providers in the areas of Product Engineering and Digital Transformation;
Enabling companies to develop and optimize a global engineering partner strategy to achieve higher throughput, innovation, productivity, and cost savings;
Growing revenue for companies' products and services in India and other emerging markets;
Helping MNCs expand and/or consolidate their globalization footprint.
With their team of experienced professionals and research teams, Zinnov serves clients from across software, semiconductor, consumer electronics, travel and hospitality, automotive, storage, telecom & networking, healthcare, banking, financial services, and retail verticals in US, Europe, Japan, and India.
For more information, visit http://zinnov.com. PWR