As Per Gartner Robotic Process Automation Will Boom Enterprise Software Development Market

10 Jul

What is Robotic Process Automation? If you ask an average person the question most likely you will get no reply as he/she does not have a clue about it.

But a recent data from Gartner has revealed that Robotic Processing Automation (RPA) has a market that has witnessed 63% growth solely last year, i.e. 2018.

This makes RPA the fastest growing business in the market of software. As a result of this growth, it is estimated that more organizations will be looking for RPA development services. Also, this means the market value of RPA is likely to grow that now stands at a value of $846.2 million, which is rather modest in the software market compared to the software enterprise being a multi-billion dollar entity.

Why Gartner’s Report Is Important?

Before we go into the report of Gartner, let us see why Gartner’s recent study about RPA is important. Gartner is one of the leading research and advisory firms in the world. Many in the industry also see this Connecticut, USA based organization as the most influential analyst firm that provides a broad reach and deep insight compared to any other analyst firms.

Gartner provides insights, advice, and tools to host of servers and enterprises belonging to IT, finance, HR, customer services and support, legal and compliances, marketing, sales, software development services, and supply chain functions. Since it also works with various companies that invest in emerging technology as well as well-established, multinational enterprises, Gartner has the resource and the platform to hear from a multitude of customers and technology providers on daily basis.

This gives them a great scope to understand the industry trends since the customers of Gartner discuss the technology stack and the strategic vision they have for their respective organizations to go forward. The typical questions that Gartner offers to get a better understanding of any enterprise can range from something like the following:

• What technology that others are adopting?

• What is the emerging innovation and what is becoming obsolete?

• Where does the company stack up against the competitors of the industry?

• What can be learned from the competitors of the industry?

• What plan should be considered to be a success?

All these collaborative and intimate details about other companies are learned by Gartner and these add to the foundation of their knowledge for evaluating various vendors from which they can analyze the trends and technologies that impacts the market.

This makes the Gartner report on RPA important and should be considered seriously. Based on the report it is also essential to understand that the market for enterprise software solutions offering RPM service is quite lucrative.

Read the blog- How can Custom software development help your business?

What Is Robotic Process Automation?

Robotic Process Automation (RPA) is a system that allows enterprises to automate tasks across several applications and systems. For RPA no complex system is required for integrating it with the existing IT architecture. It is also used for automated workflow, back-office processes, and infrastructure that are labor intensive. Bots can be part of the RPA system that can interact with the website, user portal or in-house application and can run on an end user’s mobile device, laptop or PC. The primary aim of RPA is to automate processes that are boring and repetitive.

With RPM becoming the trending software technology many enterprises will be looking for custom software Development Company that will offer service for their organizations.

What Does Gartner Report Say?

According to Gartner RPA has already established its credibility and working well in the sectors like banks, insurance companies, utilities, and telcos. According to Gartner Vice President Fabrizio Biscotti, the key driver for RPA projects it its ability to integrate legacy systems. He further states that with the help of RPA technology enterprises will have the potential to ‘accelerate their digital transformation initiatives, while unlocking the value associated with the past technology investments.’

According to Gartner’s report UIPath, a complete software development services platform was able to grow the maximum with RPA technology. The startup was able to raise $568 million on a $7 billion valuation in 2018 alone. Its growth trajectory is impressive with 629.5 percent. It was able to increase its $15.7 million revenue in 2017 to $114.8 million in 2018.

The other startup that marked its extensive growth with RPA is Automation Anywhere, another RPA development services provider to enterprises. It is another unicorn since it was able to raise $300 million while it was valued at $2.6 billion. It was also able to receive funding from Japan’s SoftBank Group. UIPPath and Automation Anywhere were able to get $1.5 billion in funding.

There have been several other startups that offer RPA enterprise software solutions in the market that has had significant growth thanks to RPA. Companies like Blue Prism Group PLC have had a growth of 105 percent and almost double its revenue from 34.6 percent in 2017 to 71 percent in 2018. Other two companies that have drastic growth and worth watching are Kofax and NTT-AT. Kofax had 256.6 percent growth between 2017 and 2018 with increased revenue of 37 percent from 10.4 percent. NTT-AT increased its revenue from 4.9 percent in 2017 to 28.5 percent in 2018 giving it the growth of 480.9 percent.

The RPA market is still at its nascent stage, which means it has ample room for development and growth. This also translates into the fact that there is enough room for startups to grow, mainly those custom software development company who can offer RPM software solutions to various enterprises belonging to different sectors.

However, after analysis of the data that Gartner has, it is of the opinion that in near future there will be consolidation and in all likelihood, larger players will be consuming the smaller enterprises so that they can gain greater market share. It will not be unnatural to see that soon giants like IBM and Microsoft. Corp will be muscling their way into the RPM market and take over major share. Until that happens there is enough space for the startups to work on RPM.

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