Automation-as-a-service Market Overview
Automation–as–a-service market is growing rapidly due to the increasing adoption of cloud technology and emerging demand for automation. Automation-as-a-service enables organizations to mechanize the business processes by capturing and interpreting data from existing applications. It helps organizations to shift from slow manual processes to reliable, fast automation across the organization in a matter of hours or even minutes.
On the basis of component, the automation–as–a-service market is categorized into solutions and services. Services are further categorized into managed services and professional services. Professional services consist of deployment and integration, support and training, and consulting services. The services category is expected to show higher growth during the forecast period while deployment and integration services is probable to witness the highest demand over the forecast period, due to their growing need across organizations.
On the basis of type, the automation–as–a-service market is categorized into rule-based and knowledge-based automation solutions. Of them, knowledge-based automation solutions are expected to grow due to their ability to handle large amount of data with less dependency on manual handling.
On the geographical standpoint, North America garnered the largest revenue share in the automation–as–a-service market, followed by Europe in 2016. Whereas, APAC is expected to show the largest adoption for the same due to government initiatives for smart cities in countries like India and China, during the forecast period.
Automation-as-a-Service market dynamics
Some factors that are positively impacting the growth of the automation–as–a-service market includes, rising demand to automate the repetitive mundane tasks, rising labor costs and need for high productivity.The digitization trends and increasing need for backend automation to save time are some of the present market trends. The lack of awareness and lack of skilled professionals are some of the factors restraining market growth.
With increasing demand for automation, it is increasingly being adopted by small & medium enterprises (SMEs) as well as large organizations across various sectors including BFSI, telecom and IT, healthcare & life sciences, media & entertainment, and manufacturing. With increasing adoption of automation across various sectors, automation–as–a-service market is expected to witness robust growth.
Worldwide, organizations are shifting their sales and marketing departments towards automation-as-a-service since they need to do tasks that are repetitive and mundane. These tasks consume a lot of time which otherwise would have been utilized to do some other important work. To gain more profits and stay competitive in the global marketplace, organizations are moving their sales and marketing department towards automation and increasingly adopting these services, driving the growth of automation–as–a-service market.
Security is increasingly becoming a major concern for businesses particularly in BFSI industry, with the continuously increasing volume and variety of transactional data. In BFSI industry, automation-as-a-service aids to maintain all the transaction records and provides the required security and privacy of those records. Due to these benefits, the demand for automation to maintain and manage records of the financial transactions is increasing, thus propelling the growth of automation–as–a-service market.
Most organizations are actively striving to reduce costs whenever and wherever possible. Automation helps to facilitate this savings in a number of ways, including greater output of work, fewer errors and lower human personnel numbers. This increases the adoption of it across various sectors fueling the automation–as–a-service market.
The automation–as–a-service market is making a swift transition towards digitization due to the growing adoption of IoT technologies. New tools are being developed by industry players to perform automation services hosted in the cloud that were previously done by a service representative on site.
The back-end services automation trend is quite popular in the automation–as–a-service market. Back-end services automation is increasingly becoming important for companies to eliminate paper-driven processes. Companies are increasingly shifting to electronic check records from old processes of scanning and filing paper checks.
Automation benefits companies with reduced operational costs and time to service customer requests. For instance, a leading bank automated about 900 of its back-end operations to relieve about 50% of its full-time employees from their back-end tasks.
As new technologies continue to enter IT services industry, automation–as–a-service is observed by companies as the way to differentiate their offerings and gain competitive advantage. IT companies that having sound automation capabilities, are better positioned to re-price and realign their service offerings in line with changing expectations. With increased competitiveness most IT companies face the demand to perform tasks faster. There is a trend of companies switching to automation to maximize performance without having to invest more in the hiring of staff. This trend among companies is expanding the automation–as–a-service market.
Companies are taking routes for acquisitions to enter into the automation roles to increase their productivity. In 2015, Infosys acquired Panaya, which shows its interests in Automation-as-a-Service to enhance its capabilities.
The factors such as lack of awareness about automation–as–a-service are expected to limit the market growth. Many companies are reluctant in giving business critical data in hands of technological system as they doubt in capability of automation systems and may result in serious business concerns.
Automation implementations are not compatible with traditional requirements gathering process. Automation technologists have to work closely with process owners for identifying the activities which can be potential targets for automation, which can be time consuming and hence one of the restraining factors for automation–as–a-service market.
Automation-as-a-Service Market Competitive Landscape
Some of the major vendors that operate in global automation–as–a-service market is Automation Anywhere, Inc., Blue Prism, International Business Machines Corporation, Microsoft Corporation, UiPath, HCL Technologies Limited, Hewlett Packard Enterprise, Development LP, Kofax Inc., NICE Ltd., and Pegasystems Inc. The major technology providers are offering innovative solutions that enable the end-user organizations to achieve improved operational efficiency, productivity, and enhanced quality.
New players are entering the market and key players are trying to acquire them to gain their technical knowledge for the betterment of their product portfolio.