RPA, the technology of creating robots (intelligent applications or software bots), uses a combination of automation, computer vision, and machine learning to automate repetitive, high-volume tasks that are rule-based and trigger-driven. Bots emulate human actions in a graphical user interface (GUI) on virtual devices, essentially acting as virtual robot copycats. RPA is one of the fastest-growing technologies for improving business operations and processes.
RPA can be used for processing transactions, manipulating data, triggering responses, and communicating with other digital systems. Examples include insurance claims processing, invoice processing, customer feedback analysis, employee onboarding, and HR operations. The top industries utilizing RPA include banking, telecommunications, healthcare, and insurance.
RPA poses a threat to the business process outsourcing (BPO) industry. The idea behind this notion is that RPA will enable enterprises to "repatriate" processes from offshore locations to local data centers, leveraging the benefits of this new technology. If true, this shift will create high-value jobs for skilled process designers in onshore locations (as well as within the associated supply chain of IT hardware, data center management, etc.) while reducing opportunities for low-skilled offshore workers.
Since RPA does not change the IT landscape, implementation is very fast, with tangible results achievable within the first 2–3 weeks of piloting. If, for any reason, it becomes necessary to revert to the previous workflow, simply turning off the robot will allow the task to be reassigned to an employee.
RPA trends:
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The global market for RPA software and services was valued at $1.2 billion in 2019. Academic studies suggest that RPA, along with other technological advancements, will drive a new wave of productivity and efficiency in the global labor market. Oxford University estimates that up to 35% of all jobs could be automated by 2035.
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Robotic process automation 2.0, often referred to as "unassisted RPA," represents the next generation of RPA-related technologies. Advancements in artificial intelligence and machine learning are making it easier for businesses to leverage RPA without requiring large development budgets.
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The role of enterprise global in-house centers (GICs), such as those in India, is becoming increasingly significant. These centers and their leaders are playing a critical role in driving global decision-making and RPA strategies. GICs often serve as RPA test beds before global implementation within enterprises.
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The demand for RPA-trained talent is rising, with approximately 210,000 professionals currently in the field. India and the U.S. are emerging as major hubs for RPA expertise. This growth is driven by developer ecosystem initiatives that help tool vendors accelerate the expansion of use cases and market access.
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RPA is expected to enter the public sector. Unlike in previous years, when RPA was mainly adopted by private industries and multinational corporations, governments worldwide are now recognizing its value in citizen-centric services.
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A shift is expected from licensing revenue to consultancy services. The number of robotic vendors is increasing, leading to a decline in RPA license costs and a rise in free trials. As a result, consultancy revenues—generated from process documentation, pilot proof-of-concepts (POCs), and core consulting—will become the primary revenue source.
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Chatbots are gaining prominence. With the growing adoption of conversational interfaces, chat- and voice-enabled processes will become industry standards.
