Software robots reduce operating costs by 90%

Using a software robot to replace a full-time human equivalent can save business around 90% of operating costs according to new research conducted by Kinetic Consulting Services.

Robotic Process Automation (RPA) streamlines back- and front-office processes that are largely based on rules, structured and repetitive, and the automation replaces or augments humans normally performing the task with ‘robotic’ equivalents. These are software robots and not physical ones.

Process automation has recently achieved a level of maturity and is building momentum in the business world. This has been driven by the release of multiple sophisticated software solutions not previously available and also by the growing demand for organisations to optimise operating costs and to increase quality of services.

Unlike their human counterparts, software robots make fewer mistakes, don’t complain and work 24x7 if required.

According to Joe Tawfik, Kinetic CEO and author of the report, “Our research, explored the range of solutions available and real-world examples of how organisations were using them and also the benefits they were getting from the implementation.

“There are a number of commercial and strategic considerations that need to be made when considering an RPA implementation. Not every organisation will be ready to introduce a digital workforce just yet. However, our report clearly concludes that RPA has to be on the corporate agenda for 2016 and should be given serious consideration. RPA has been cited as an example of what economists are calling the ‘Fourth Industrial Revolution’.

“The need to take action is further reinforced by the federal government’s message about the importance of Australian business to embrace innovation,” said Tawfik.

The traditional model of outsourcing low-value processes to reduce operating costs is no longer the only option available. RPA offers organisations an alternative to outsourcing to a low-cost base country to gain a labour arbitrage advantage. There is also the advantage of keeping a process onshore, maintaining greater control, and at the same time saving more than if the process is sent to a low-cost base country such as India or the Philippines.

Image credit: © Tatiana Shepeleva/Dollar Photo Club