Enterprise Spend on Robotic Automation (RA) Estimated to be Over USD 1.5 Billion in FY2017: Says Zinnov

- Accenture, Genpact, Wipro, TCS and HCL Among the Top Robotic Automation (RA) Service Providers in the Global Rankings of RA Service Providers by Zinnov

Zinnov, a leading management consulting firm, today announced the release of its recent study titled, Zinnov Zones for Robotic Automation 2017. The launched study is aimed at helping enterprise customers understand the market landscape and identify the most relevant service providers in the Robotic Automation (RA) space. Zinnov defines Robotic Automation (RA) as the use of software robots for automation of business and IT processes, including both rule-based deterministic use cases as well as complex use cases requiring cognition. Pegging the global Robotic Automation spend at USD 1.5-1.8 Bn in FY2017, the Zinnov study estimated the investments to grow at 60% CAGR to reach USD 6.5 Bn by 2020. Lower cost of operations, higher efficiency gains, increased quality, compliance and scalability emerged as top drivers for enterprises to spend on RA.

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In the study, Zinnov estimated a global addressable opportunity of USD 41.3 billion in the Robotic Automation (RA) market of which USD 19 Bn is attributed towards Business Processes and USD 22 Bn is attributed to Application Development and Infrastructure Management related processes. Top verticals including BFSI, Telecom, Retail and Manufacturing account for 55% of the total addressable market for RA. The study further noted that several new age Robotic Automation platforms are enabling rapid adoption of RA technology, within enterprises and that the advent of intelligent automation along with rapidly evolving business models will continue to drive the spend growth momentum.

The report also highlighted that enterprises spent over USD 160 Mn in FY 2017 on RA services with external service providers. Design and consulting accounted for USD 35-40 million, while development and integration services accounted for over USD 110 Mn. The remaining USD 25-30 Mn was spent on managed services, support and maintenance. 65% of the RA services investments by enterprises was concentrated with 10 service providers and 45% of all RA deals in FY17 were more than USD 500,000 in value, it added.

Additionally, the study also ranked 21 Robotic Automation service providers on the basis of their scale of Robotic Automation business as well as relevant capabilities covering factors such as RA talent base, intellectual properties, partnerships and client engagements. Accenture, Genpact, Wipro, TCS, and HCL came out as the leaders in this assessment. Besides the overall ranking, the exercise also includes an assessment of these service providers for their Robotic Automation service capabilities in priority industry verticals, including BFS, Insurance, Telecom and Retail.

Speaking about the report, Praveen Bhadada, Partner and Practice Head, Enterprise Digital Transformation at Zinnov, said, "With over USD 1.5 Bn in investments, Robotic Automation is emerging as one of the most prominent digital spend categories among enterprises. Today, more than 70% of the manual, deterministic and rule-based IT-BPM processes can easily be automated through software robots. A confluence of RA, Artificial Intelligence and other digital technologies is further enabling intelligent automation of some of the most complex of use cases as well and presents a huge opportunity for enterprises across verticals."

Talking about the service provider opportunities, Praveen added, "We expect the RA services market to grow in line with the overall growth of the RA spend by enterprises. In our assessment, 55% of all outsourcing deals in RA are structured as outcome based deals and it will be important for service providers to enhance their capabilities to deliver business outcomes for their customers. We recommend that service providers invest in strengthening their domain, process and technology skills to truly realize the multi-billion dollar RA services opportunity going forward."

About Zinnov Zones:

Zinnov Zones is an annual rating published by Zinnov which rates service providers based on their competencies and capabilities. Since 2009, Zinnov Zones (previously known as GSPR - Global Service Provider Ratings) has become one of the most trusted reports globally, for both enterprises and service providers to better understand the vendor ecosystem in multiple domains, such as Digital Transformation, Product Engineering, IOT Services, and Media and Entertainment.

Given the exponential growth of Robotic Automation market and the increasing adoption of the technology by enterprises, Zinnov extended the Zinnov Zones methodology to this domain and has launched 'Zinnov Zones-Robotic Automation Services 2017'. The detailed ratings and contact information of service providers are available on http://zinnov.com/zones/.

About Zinnov

Founded in 2002, Zinnov is headquartered in Silicon Valley and Bangalore. In over a decade they have built in-depth expertise in engineering and digital practice areas. They assist their customers in effectively leveraging global innovation and technology ecosystems to accelerate innovation and digital transformation. Zinnov helps their customers:

- Benefit by benchmarking their technology strategy and business models with best practices from peers and technology start-ups

- With large scale engineering and digital transformation through globalization and innovative engagement models

- Build their M&A strategy

- Grow revenue by helping them identify relevant products and services for emerging markets

With Zinnov's team of experienced professionals, they serve clients in Software, Automotive, Telecom & Networking, Semiconductor, Consumer Electronics, Storage, Healthcare, Banking, Financial Services and Retail verticals in US, Europe, Japan and India.

For any further media queries, please contact:
Kinjal Chhetri Panwar
Phone: +91-8197140140
Email: kinjal@zinnov.com