Strategies for Buy Side Organisations
Buyers – drivers, benefits, hiring impacts, RPA-readiness, target operating model and roadmap
[EXTRACT] Enterprise buyers are increasingly becoming aware of RPA as a disruptive technology that is driving exponential improvements in productivity, operational efficiency as well as cost rationalisation, which all lead to a significant impact on the service provider’s bottom line.
Key drivers for buyers
RPA also provide the opportunity to re-shore or in-source RPA managed processes. This enables the buyer to regain control of processes without additional costs. Costs may even be lower as compared with off-shored processes without RPA).
Buyers are attracted by the strong returns on investments and short payback potential offered through RPA deployments. RPA implementations provide for greater predictability of costs, improving overall cost management. Buyers also recognise the opportunity to free up staff to be deployed on more strategic higher value roles. These are typically replaced by a smaller number of higher skilled staff involved in managing the software robots.
We also believe that, as RPA steadily goes main stream, many client organisations will become more comfortable in shifting to new service providers having RPA capabilities embedded with their service portfolio, from traditional incumbent service providers who are yet to deliver value beyond traditional labour arbitrage and embrace disruptive technologies quickly. Partnering with a RPA focused service provider, client organisations can leverage economies of scale, process expertise and delivery excellence as well as faster deployments more cost effectively. Service providers with live client site RPA implementation experience can incorporate “lessons learnt” in previous implementation experience with their clients.
With increasing pressures on sustaining profitability, managing rising costs of offshoring and regulatory issues, enterprise buyers are finding RPA driven outsourcing deals appealing. Such deals do not just lower operational costs significantly. They also remove the ongoing challenges of deploying staff including attrition, training costs, annual leave management, and sick leave. Further, RPA-driven BPO deals also enable buyers to engage with service providers on high end work thereby providing a win-win situation for both service providers and buyers.
RPA initiatives are receiving a high level of support from the most senior levels of client organisations