By Tilak Banerjee, Director: Dell Technologies.
The dialogue with Robotic Process Automation, or RPA, is becoming more profound in the Shared Services environment. Shared Services is when specific departments within an organisation share their services across the group, effectively becoming internal service providers (the funding and resourcing of the service is also shared).
There is a significant increase in the number of organisations that have started testing their own RPA solutions within Shared Services.
Labour Arbitrage versus…
Future value is no longer in labour arbitrage that offers only 15 – 30% cost take-outs and scales only to the extent that the labour scales. Access to low cost labour is a necessity in order to provide continuous services, while the value and profits are correlated to people.
The value now lies in labour automation where cost take-outs can reach 40 – 70%. Labour automation can scale largely independent of labour growth. It offers a transformative and new way of doing business with access to business process leaders and developers. Value and profit is not correlated to people but to the automation process.
Use of RPA
While uncertainty with regards to Robotic Process Automation is fairly elevated, there is a steady decline in the number of organisations that initially held back; these organisations have started RPA technology evaluation for their Shared Services. Europe, North America and Asia seem to be the leading regional packs where the most Robotic Process Automation pilots and implementations are being deployed.
Graph: regions where the most RPA/IA pilots & implementations are happening:
Banking, financial services, insurance and business process outsourcing (BPO) are the leading sectors piloting or implementing RPA in Shared Services; closely followed by technology, manufacturing, utilities, healthcare and the professional, legal and accounting industries.
Graph: industries that are Piloting/Implementing RPA globally:
Popular functional areas for Robotic Process Automation include HR, IT and customer service with finance and accounting taking the lead. 73% of RPA projects are in full maturity while 27% are in pilot phase.
Graph: functional areas and project maturity for RPA:
The challenges faced by Shared Services include the standardisation of processes before RPA implementation, lack of resources to allocate to RPA projects and – the big challenge – fear of job loss.
However the implementation of RPA projects can last anywhere from 4 to 12 weeks, and there are significant benefits.
Graph: duration of RPA implementations:
We explore the benefits of RPA further in this video: