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Growing Use of IT Robotic Automation in Financial Sector to Facilitate Reduction in Costs, says TMR

Posted on Aug 22, 2016

The global IT robotic automation market is dominated by numerous companies specializing in delivering either robotic automation tools or robotic automation services. According to Transparency Market Research, the key producers of IT robotic automation tools are Blue Prism, Be Informed B.V., Automation Anywhere Inc., Appian Corporation, and IPSoft Inc. Leading providers of IT robotic automation services include Sutherland Global Services, Accenture plc, Tata Consultancy Services, Infosys Limited, and Cognizant Technology Solutions. 

Companies in the global IT robotic automation market utilize various strategies to gain a competitive advantage. Raising awareness about the availability and benefits of IT robotic automation is a key avenue pursued by several leading players, while achieving market expansion via collaborations and partnerships is another popular stratagem. The annual revenue of the global IT robotic automation market is expected to reach US$769.2 mn by the end of 2016 and further rise to more than US$4.9 bn by the end of 2020. 

Growing Adoption in BPOs Crucial for IT Robotic Automation Market

The prime driver for the global IT robotic automation market is the increasing awareness about its benefits in BPO operations. While BPO services are already commonly utilized in the business sector and have reduced the required expenditure of businesses significantly, the incorporation of IT robotic automation services has the potential to reduce the costs of business process management even further, albeit in the long run.

“While some human labor will probably be necessary in the BPO sector in the coming years, robotic automation can take care of several formalities. This will smoothen the process of business process management, allowing the human employees to focus on customer service and other areas that can’t be controlled by robotic systems,” said TMR’s lead analyst.

The rising adoption of IT robotic automation in the financial sector is a crucial driver for the global market. Due to the menial nature of many operations in the financial sector, a large part of it can be effectively managed by robotic automation services. Invoicing, compliance, payment processing, and task allocation are some of the key operations in the financial sector that can be managed better by robotic services than by humans, since the possibility of human error is removed. The large-scale adoption of IT robotic automation services in the financial sector could help the former achieve feasible economies of scale in the coming years.

Security Concerns, Compliance with Preexisting Contract Structure to Restrict Demand for IT Robotic Automation

Despite the several unequivocal advantages of IT robotic automation, the demand for the same is restricted by the widespread prevalence of conventional BPO contracts in the business sector. These contracts are often drawn out over the long run, and the expiry of most of them is still a fairly distant event. After the expiry of the current contracts, the IT robotic automation market is expected to exhibit rampant growth.

Security concerns regarding the risk of the whole network ecosystem being vulnerable to even the smallest data breach, owing to the necessarily interconnected nature of IT robotic automation services, are another key restraint on the global market. While developers of IT robotic automation services have always been keen on improving their security offering, the persistent risk of cyber-crime has held back the adoption of IT robotic automation services.

Automation Tools to Exhibit Higher Growth Rate than Automation Services in 2014-2020 Forecast Period

Of the two key types of products in the global IT robotic automation market, automation services held a dominant share of 70.2% in the global market in 2013. Though the status quo is likely to be maintained, the share of the services segment is expected to drop to around 66% by 2020, illustrating the strong growth prospects of the automation tools segment.

Regionally, the developed markets in North America and Europe dominate the global demand for IT robotic automation services, with the two collectively accounting for a whopping 83% of the global market in 2013. However, Asia Pacific, Latin America, and the Middle East and Africa are all likely to exhibit higher growth rates in the coming years, illustrating the benefit for major market players of focusing on emerging regions in the coming years.

The information in this preview comes from a Transparency Market Research report, titled ‘IT Robotic Automation Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014  - 2020.’

The global IT robotic automation market is segmented as follows:

IT Robotic Automation Market, by Type:

  • Tools
  • Services

IT Robotic Automation Market, by Tools:

  • Model-based Application Tools
  • Process-based Application Tools

IT Robotic Automation Market, by Services:

  • Professional
    • Consulting
    • Integration and Development
    • Application Management
    • Infrastructure Management
  • BPO
    • Application Management
    • Infrastructure Management
    • Training

IT Robotic Automation Market, by Geography:

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America

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