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Posted: 13 Nov 2017

RPA Impact on our labour markets

By Mohit Sharma

The expected RPA Impact on cost savings are dramatic and will be hard to ignore, but there will be a significant RPA impact on labor markets, leading to a change in hiring strategy and the mix of staffing required. In the short term RPA will enable job transformation – not job replacement.

In processes where Robotic Process Automation is introduced, a number of staff will become available to be deployed on non-routine roles. Service providers will, in most cases, want to retain their staff as best as possible and explore various options of doing so. These include:

  • Re-skilling existing FTEs (Full Time Equivalent) on new roles and job responsibilities (people skilled in implementing, managing and maintaining robots) through learning and development programs (in-house or through partnerships with specialized RPA consultancy firms).
  • Partnering with reputed global or regional engineering and technology institutions to embed advanced IT skills in existing curricular which their staff may then be considered for.
  • Staff reduction strategies will also be required where staff members are not able to be trained for other roles, to ensure the service providers maintain competitiveness.

Service providers will also need to review their strategies for new hires. RPA impact will be noticeable in the shift from hiring low-skilled resources to more qualified professionals who will benefit from having experience in disruptive technology domains including automation, process improvement, governance and compliance, cloud, mobility, analytics and social media.

RPA Impact on Business to Make More Productive Work 

There is no wonder how technology has impacted every business. Businesses have experienced a great deal of change due to robotic process automation (RPA), which has revolutionized work and increased productivity. RPA increases efficiency and production by automating routine, rule-based operations and allowing employees to concentrate on more strategic, value-added work.

It affects overall corporate productivity, mainly by removing errors common in manual work. In addition, RPA bots are highly precise in following preset rules and procedures, lowering the possibility of human mistakes brought on by exhaustion, distractions, or other circumstances. 

RPA also gives companies the ability to automate processes and increase turnaround times. Without being restricted by human working hours, bots can carry out activities without tiring. Therefore,  This 24/7 availability increases businesses' efficiency in achieving stringent deadlines and service-level agreements. Companies may serve clients more swiftly and acquire a competitive advantage in the market.

Furthermore, It encourages scalability and flexibility within businesses. It enables firms to quickly scale up as workloads rise by deploying new bots to tackle the extra jobs. This scalability allows companies to change to meet changing customer needs without having to make substantial expenses in recruiting and training new staff members. In addition, RPA offers the ability to modify and improve automated processes as business requirements change swiftly, enabling quick changes and increased agility.

Therefore, RPA has a profound effect on corporate productivity. In today's cutthroat business environment, RPA helps organizations reach better efficiency levels, improve customer satisfaction, and drive growth by automating repetitive operations, decreasing mistakes, enabling quicker processing times, and delivering scalability and flexibility.


Short to Medium Term RPA Impact

  • Increased in-sourcing of functions and processing
  • High-volume, transaction roles to become redundant (low level, low skill)
  • Need for operational and lower to middle management roles to manage, report on and configure the robotic process

Long Term RPA Impact

  • Changing business models – more functional areas are expected to come under the purview of RPA as maturity, scale and platform functionality enhancements continue to grow
  • Considerable replacement of humans by robot applications on both routine and non-routine, manual and cognitive tasks
  • More robots would be employed onshore as earlier sensitive and untouchable processes can now be made more cost effective
  • As the focus shifts to a small number of higher value adding roles, HR will increasingly have to re-structure employment contracts, agreements and work/skill requirements including appraisals and rewards and recognition structures with staff in impacted areas
  • Re-deploying human resources (who are displaced by RPA platforms) on non-routine process roles in IT or other internal functional areas (e.g. experts in process automation, continuous improvements)


Short to Medium Term RPA Impact

  • Elimination of high volume, repetitive, rule-based job roles impacting low-skilled workforce
  • Increased cross-training or up-skilling of FTEs on new job roles and responsibilities through internal training programs, especially in offshore delivery locations such as India, Philippines and select provider markets in Eastern Europe and Latin America.

Long Term RPA Impact

  • Re-deploying human resources (who are displaced by RPA platforms) on non-routine process roles in IT or other internal functional areas (e.g. experts in process automation, continuous improvements) through in-house re-skilling and cross training initiatives (primarily for lower management roles)
  • Realigning middle management supervisory roles with other roles including managing client relationships, monitoring and managing the RPA environments or robot applications and associated support teams, e.g. to update, test and oversee the performance of the software robots, meeting changing business needs.

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Mohit Sharma

Mohit Sharma

Founder and Exec Chairman
Thought Leader | Trusted Advisor | Innovator