Tag: RPA

Automation Unchained | Webinar

Wednesday, October 11, 2017 | 1:00 p.m. – 2:00 p.m. EST

Research VP and automation expert Sarah Burnett will co-lead a EdgeVerve-hosted webinar on a holistic approach to enterprise automation.

As most enterprises are awakening to the presence of robots in their midst, they are also exploring various engagement models – the one which can deliver best value, drive costs down and also enhance the customer experience. Piece meal or Wholesome? This webcast explores the best approach that enterprises can take when engaging with service providers for automating some of the most important and crucial processes within the organizations using some industry examples and best practices.

Join this session to discover how enterprises should approach automation for optimal success.

register for the webinar

Slow IT growth, high talent supply may keep salaries low | In the News

Entry-level IT jobs will continue to see low wage as the Indian software services industry foresees a slowdown in offshore services to the country in future.
Salary growth prospects for entry-level IT professionals will not be much given the fact that offshore jobs will not come in large quantities in contrast with the sharply growing number of information technology graduates, said a report by Everest Group, a Dallas, US-based IT consulting and research firm.

“More competition will keep the salary down over the 25-35 years horizon. The wage growth will remain muted. People were getting 8-10 per cent growth (on an average), but they will now be getting 4-5 per cent as they move up the pyramid. But the pressure will still remain on the entry-level positions,” said Michel Janssen, Chief Research Guru, Everest Group, Dallas, US-based IT research firm.

Read more in Business Standard

End of the Line for Traditional Sources of Bank Growth Drives Urgent Interest in FinTech, Business Process Service Providers | Press Release

Robotic process automation, analytics and consumer-facing technology solutions will sustain 5-9 percent growth in banking BPO market through 2020

The proverbial advice “if you can’t beat them, join them” is particularly apropos for banks who find themselves competing against FinTechs (financial technology companies) in the digital age, according to Everest Group in newly published research addressing the business process outsourcing (BPO) market in the banking industry.

Everest Group reports that the traditional banking model with its legacy technologies and ways of doing business has reached the end of the growth curve, so banks must now focus on new technologies to survive. To remain relevant in an evolving market of new-age consumer preferences and unprecedented external pressures, banks are turning to technology solutions such as robotic process automation (RPA), analytics, artificial intelligence (AI), open application programming interfaces (APIs) and blockchain to decrease costs, improve operational efficiency, offer more personalized solutions, and deliver a seamless digital experience to customers.

In some cases, banks are building these technological capabilities in-house, but in many cases, banks are turning to service providers and making allies of former FinTech competitors in order to survive in the ecosystem and offset marketplace challenges.

“Banks can combine their strengths—such as access to resources, trust of customers, and expertise in core banking services—with the innovative offerings of technology players to cope with the significant challenges they are facing in the marketplace,” explained Anupam Jain, practice director at Everest Group. “This is why we are seeing a sustained growth rate of 5 to 9 percent in banking BPO. Service providers are supporting banks by leveraging their expertise in technologies such as analytics and blockchain. And we’re also seeing banks establish collaborative, win-win partnerships with FinTech players who have deep technological assets. This will be a dominant strategy for the bank of the future.”

These results and other findings are explored in Everest Group’s recently published report: Banking BPO Annual Report 2017: Disruption Does Not Discriminate — Banks Embracing Digital to Stay Relevant. The report provides comprehensive coverage of the global banking BPO market, including detailed analysis of the state of the market and challenges faced by banks, market size and adoption by lines of business (LoBs), technology adoption, and the future outlook for banks.

 Other key findings:

  • The global banking BPO market is expected to grow at a steady pace of 5-9 percent over 2016-2020.
  • While North America continues to be the most significant market for banking BPO, Continental Europe and Asia Pacific have witnessed significant growth.
  • Bank LoBs are facing challenges to remain profitable with the pressure of regulations, competition from non-banks and rising expectations of customers.
  • The overall BPS industry has witnessed significant RPA adoption; however, its adoption in the banking BPO industry remains low.
  • Analytics in BFSI (the banking, financial services and insurance market) is starting to differentiate in its usage, and BFSI is poised to remain the largest market for analytics.

***Download complimentary report abstract here***

Heralding the Robot Revolution in Human Resources! | Sherpas in Blue Shirts

Until a year or so ago, the common refrain among those operating in the HR function was that HR services were already so heavy with platform automation that there wasn’t much that Robotic Process Automation (RPA) or Artificial Intelligence, its more advanced cousin, could do.

However, my extensive research shows that HR has enthusiastically jumped on the bandwagon. Even though many automation projects still inhabit the realm of slideware, many HR leaders and their service provider brethren are recognizing the impacts that automation can have on both their costs and revenue.

Enterprises: cost impact

Even though Human Resource services are heavy with platform automation (these platforms can be the traditional ones such as SAP and PeopleSoft or the new-age ones such as Workday and SuccessFactors), humans continue to do transactional tasks, such as entering data into platforms, transferring data between platforms, or preparing templated documents such as offer letters. RPA can perform these types of tasks faster and more accurately, and leave a reliable audit trail, wherever needed. It also frees people to do higher-order work. The result is significantly better efficiency and reduced costs.

Enterprises: revenue impact

Automation can also boost revenue indirectly by enhancing the employee experience, which in turn increases productivity. Think chatbots. While the current chatbot implementations are mostly RPAs, infusion of AI features such as Natural Language Processing (NLP), machine learning, and conversational user interfaces can be game changing. For instance, AI-enabled chatbots could remove employees’ toil from applying for leaves, filing expense reports or timesheets, selecting benefit plans, or getting answers to common HR queries. Managers could use chatbots to help shortlisted candidates, provide personalized onboarding assistance, and collect performance evaluation feedback. Chatbots’ 24/7 availability, ease of use, and rapid and accurate responses contribute directly to better productivity and experience.

HR service providers: cost impact

Service providers too are gaining significant cost and efficiency benefits through RPA, which mainly translates to deploying less Full-Time Employees (FTEs) to deliver the same outputs. Providers are presently grabbing most of these cost benefits to expand their margins, rather than pass them on to their clients in the form of reduced prices. That approach works like a charm for providers because the dominant output-based pricing model (per employee served, per pay slip processed, etc.) of HR services delinks FTE count from pricing, thus hiding gains through FTE reduction from clients. That is unlike the case of say, an F&A services construct, where the pricing is usually input-based (per FTE) and enterprise customers pressure providers to reduce FTE count through RPA and thus, cut prices.

HR service providers: revenue impact

However, enterprises are steadily wising up to RPA benefits that can drive lower price. Moreover, with increasing competition, providers are increasingly using RPA to set ever lower prices. Thus, providers will soon be forced to make a choice – do nothing and let others take away their business, or aggressively deploy RPA and cannibalize themselves but retain clients. The latter is obviously the lesser evil, even though revenues will be adversely impacted. That is when providers that look beyond RPA and invest in AI-based automation will trump the market. AI-based automation can provide benefits, such as enhanced employee productivity, for which enterprises will be willing to pay a premium. Powerful AI-based automation can also help providers deliver services they were earlier incapable of delivering, such as cognitive analytics. That can expand revenues and counter the cannibalization effect of RPA.

Clearly, automation is steadily becoming an imperative for both enterprises and HR services providers.

However, as with any advanced technology, enthusiasm without a generous helping of caution can be a dangerous potion. Setting realistic expectations about the benefits of automation, investing in technological and cultural change management, and bringing on-board key stakeholders are a few keys to success for enterprises and service providers in the long journey that is an automation implementation.

Keep your eyes peeled for my drill-down blog on these, and other, keys to success! In the meantime, feel free to share your opinions and stories of automation in HR – why or why not go for it, what works and what doesn’t, etc., directly with me at [email protected]everestgrp.com.

An Outsider’s Inside View of the Global Services Industry: New Value Props, and Bots to Boot | Sherpas in Blue Shirts

Just a month ago I rejoined Everest Group as its chief research guru. And while I thoroughly enjoyed my stints as chief research officer at Market Track (a competitive intelligence firm for advertisers) and The Hackett Group (an intellectual property-based strategic consultancy and benchmarking firm) over the last 10 years, I’m feeling like a kid in a candy store in today’s digitally-oriented global services industry!

Here are my gut reactions to visits I had last week with two sell-side organizations.

Wipro

Wow, wow, wow.

That’s research speak for how I felt after the inauguration of Wipro’s brand new Silicon Valley Innovation Center on August 1. The Center, which Wipro bills as, “…state-of-the-art R&D and incubation hub, designed to develop and showcase next-generation technologies and solutions for enterprises” clearly displayed how much its value proposition has changed.

It wasn’t that long ago that Wipro and its peers were promoting savings, quality, and scale, along with a thin layer of industry expertise. Now it’s showcasing innovative solutions along a broad array of concepts that include the future of retail, banking, and healthcare, to name just a few.

It’s clear Wipro knows that the robots are coming, rendering its traditional proposition passé, similar to what EDS, CSC, ACS, and HPE experienced over the past 15 or so years. So will its ideas be enough to compete in this dog-eat-digital global services environment? It’s hard to say, but it’s certainly going to give it the old college try. We’ll update our thoughts in due time.

Automation Anywhere

No C3POs to be found, but I did see some game changers.

I took advantage of my time in Silicon Valley to stop by Automation Anywhere’s headquarters. And I was sorely disappointed when they didn’t show me a warehouse full of R2D2 and C3PO robots. Instead, they showed me an evolutionary capability that has reached a tipping point that should make enterprise executives do an immediate rethink of how they design their organizations.

I had a spirited debate with CEO Mihir Shukla and his team about how Automation Anywhere’s RPA-based solution will impact enterprises. Our mutual thoughts were that some will use it incrementally to create short-term savings and process improvements, but that really innovative executives will use it as one of several key tools to change the competitive landscape in their markets. For them, it will be a thing of beauty. For others? Well, let’s be positive.

Watch this space for some really cool fact-based insights that help differentiate the winner and loser enterprises over the coming months.

Blue Prism Appoints Chief Customer Officer to Drive Customer and Partner Success | In the News

Blue Prism announced today that Shail Khiyara has joined the company as its first Chief Customer Officer (CCO), helping accelerate customer growth and market momentum for the world’s most successful digital workforce.

The creation of this position is the latest investment Blue Prism is making to support its robust and dynamic partner and customer ecosystem. The role will champion customer-centric initiatives, experience and strategy and be responsible for creating and driving experiences that best deliver value for customers and partners while differentiating Blue Prism’s digital workforce.

“The market demand for Intelligent Automation and RPA solutions continues to soar,” said Sarah Burnett, Vice President at Everest Group, one of the world’s largest and leading global services and RPA analyst firms. “I am excited to see this role at Blue Prism. Shail brings an excellent customer experience mindset to the market. The move shows Blue Prism’s continued focus on customer experience. As a result, we anticipate more product and Technical Alliances Partner (TAP) platform features, including AI, analytics and cloud capabilities, to ease enterprises’ transition to a digital workforce.”

Read more on Financial Times

I Can’t Get No Satisfaction – The CSAT View of RPA in BPS Contracts | Sherpas in Blue Shirts

Everest Group’s latest research shows that while there is growing adoption of Robotic Process Automation (RPA) within Business Process Services (BPS) contracts, customer satisfaction (CSAT) with service providers’ is distinctly average at 3.6 out of 5. Service providers need to do more to achieve better CSATs.

Everest Group’s research titled Business Process Services Delivery Automation (BPSDA) – Service Provider Landscape with PEAK Matrix™ Assessment 2017, which assesses the automation capabilities of leading service providers, shows that the number of automation proofs of concept run by service providers for their BPS clients has on average quadrupled in one year. Furthermore, the number of BPS contracts with automation has gone above 1,000. Yet, the scale of deployments is small; the average number of robots deployed per BPS client hovers at just below 10.

Unsurprisingly, at 85%, the vast majority of deployments are robotic process automation as opposed to automation based on Artificial Intelligence (AI).

The other finding from the report, based on interviews with reference clients of the service providers shows that CSAT with service providers automation services is fair to middling. The average overall score was 3.6 out of 5. Clients rated the need for RPA skills very highly with service providers achieving 3.9 for their RPA related services. The scores were dragged down by the CSAT for AI capabilities that scored only 3.1.

The kind of issues that the reference clients reported were mainly related to the immaturity of RPA in the global services market and the skills for deploying it. Examples of feedback include:

  • It feels like they used us as a training arena for some of their staff
  • They (the BPS provider) should communicate opportunities better. It feels like they were late to bring this to us
  • They took a long time to learn how to code in xyz RPA software. It took a long time to integrate the RPA with our systems
  • The service provider should have done more due diligence on the RPA technology vendor
  • Change management and governance need improving

What can we expect with Robotic Process Automation?

Some of this dissatisfaction is a result of the hype in the market about the ease of robotic process automation deployments and rapid returns on investment. Clients have high expectations from all RPA projects, and this is showing in projects that they deploy for themselves or through system integrators as well.

The good news is that service providers continue to invest in automation. On average, 60% of service providers’ technology staff are working on automation products, solutioning and related services. This will enhance their skills and capabilities in SDA technologies, both RPA and AI.

We expect to see skills grow alongside the market in the coming months. We’ll be watching this space closely to provide our clients with updates over the year.

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