Top 5 RPA Myths Dispelled | Webinar Deck

1. Top 5 RPA Myths Dispelled: Insights from our RPA Pinnacle Model™ Assessment April 12, 2018

2. Proprietary & Confidential. © 2018, Everest Global, Inc. 2® Introductions Moderator Michel Janssen Chief Research Guru Sakshi Garg Practice Director, Global Sourcing Alan Wolfe Senior Vice President ®

4. Proprietary & Confidential. © 2018, Everest Global, Inc. 4® Everest Group’s Service Delivery Automation (SDA) spectrum High Low Intelligence Humaninvolvement Futuretech Maturity Robotic Desktop Automation (RDA) Robotic Process Automation (RPA) Autonomics Narrow Artificial Intelligence General Artificial Intelligence Ability to handle input data type Structured only Structured and semi-structured Structured and semi-structured All types of data including unstructured All types of data including unstructured Ability to learn No No No Yes, but limited to a particular area Yes, across multiple areas Context awareness Minimal Minimal Yes, but limited to its computing environment Yes, but limited to a particular domain Yes, across multiple domains and similar to human brain Focus of this today’s webinar

5. Proprietary & Confidential. © 2018, Everest Global, Inc. 5® PI ACLEEverest Group identified RPA Pinnacle Enterprises™ based on their focus on outcomes and capability maturity Source: Everest Group’s RPA Pinnacle Model Assessment (2018) Outcomes Level2Level1Level3 Typical AdvancedBasic Leaders Everest Group recently assessed Enterprise RPA adoption on the Pinnacle Model™ based on a study with 52 enterprises Business impact Operational impact Cost impact Vision & strategy TechnologyOrganization & talentImplementation Capability maturity Pinnacle Enterprises Resourcing

6. Proprietary & Confidential. © 2018, Everest Global, Inc. 6® Distinctive benefits Pinnacle Enterprises achieved Cost impact Enterprises are seeing 30% cost savings impact from RPA in areas where they have applied automation 31% 30% Pinnacle Enterprises Other enterprises

7. Proprietary & Confidential. © 2018, Everest Global, Inc. 7® Distinctive benefits Pinnacle Enterprises achieved Operational impact Pinnacle Enterprises, on average, have achieved 50% improvement in operational metrics (over the pre-RPA scenario), compared to 30% by other enterprises across various operational metrics Cost impact Enterprises are seeing 30% cost savings impact from RPA in areas where they have applied automation 31% 30% Pinnacle Enterprises Other enterprises Increase in process accuracy Reduction in process cycle time Improvement in staff productivity 21% 29% 37% 38% 39% 41% 58% 63% Improvement in SLA compliance

8. Proprietary & Confidential. © 2018, Everest Global, Inc. 8® Distinctive benefits Pinnacle Enterprises achieved Operational impact Pinnacle Enterprises, on average, have achieved 50% improvement in operational metrics (over the pre-RPA scenario), compared to 30% by other enterprises across various operational metrics Cost impact Enterprises are seeing 30% cost savings impact from RPA in areas where they have applied automation Business impact A significantly higher share of Pinnacle Enterprises have generated “high impact” in strategic areas (e.g., customer experience and time-to-market) 31% 30% Pinnacle Enterprises Other enterprises Increase in process accuracy Reduction in process cycle time Improvement in staff productivity 21% 29% 37% 38% 39% 41% 58% 63% Improvement in SLA compliance 23% 19% 49% 44% 56% 78% Improve customer experience Create new business models Decrease time-to-market for new products and services

9. Proprietary & Confidential. © 2018, Everest Global, Inc. 9® Top five capabilities of RPA Pinnacle Enterprises 90% 100% 4X 25% 100% focus on preparing the organization from a risk, security, and process optimization perspective before implementing RPA establish RPA CoEs and encourage sharing and pooling of resources across the organization higher scale of bots deployed faster in scaling up the RPA deployment from the pilot stage, and 3X faster bots deployment develop and share reusable robots, methods, and modules across the organization to speed RPA adoption Vision & strategy Organization & talent Implementation Implementation Technology

14. Proprietary & Confidential. © 2018, Everest Global, Inc. 14® Pinnacle Enterprises have significantly higher focus on talent management compared to other enterprises Distribution of employees impacted by RPA by type of impact Number of impacted employees Reskilled / upskilled / redeployed Laid-off 17% 2% 83% 98% Source: Everest Group’s RPA Pinnacle Model Assessment (2018) Pinnacle EnterprisesOther enterprises 89% 11% All participating enterprisesXX%  Some job loss impact is likely to happen due to RPA  Talent upskilling/reskilling is an imperative, not an opportunity

15. Proprietary & Confidential. © 2018, Everest Global, Inc. 15® RPA will gradually lead to a change in organizations’ labor pyramids Head Current pyramid “Automated” pyramid Managers SMEs Transactional workers  Increased need for roles such as solution architects, infrastructure experts, and high-level, high-touch customer care staff  This change will drive a need for resource upskilling, and changes in the recruitment and training engine

19. Proprietary & Confidential. © 2018, Everest Global, Inc. 19® RPA use cases can be found across most verticals… 1 Based on the responses of 18 RPA technology vendors Top five verticals RPA market share1 Banking and capital markets Telecom & media Insurance Healthcare & pharma CPG & retail 26% 13% 12% 10% 9% Key drivers of RPA adoption  Transaction volumes; repetitive nature of tasks  Built-in compliance at lower cost  Pressure to improve quality of service and lower costs  Move toward digital and self-service channels

20. Proprietary & Confidential. © 2018, Everest Global, Inc. 20® …and many horizontal and industry-specific functions RPA adoption by business process/function1 Percent of total RPA technology vendor revenue 35% 21% 11% 8% 5% 5% 4% 11% Contact centers Web-based Industry-specific HR F&A Procurement Others  Claims processing  Policy servicing and reporting  Card activation  Fraud claims discovery  Customer data management  Contact processing  GL & reporting  AR & cash management  AP & expense reporting  New joiners and leavers  Payroll variation checking  Invoice processing  PO processing  Inventory management IT services 1 Based on the responses of 18 RPA technology vendors

23. Proprietary & Confidential. © 2018, Everest Global, Inc. 23® Pinnacle Enterprises are deriving significantly more benefits from RPA, beyond cost reduction Operational improvement Employee experience improvement Customer experience improvement  Reduction in process cycle time  Improvement in staff productivity and process accuracy  Reduction in work that is transactional/repetitive in nature  Focus on creative, customer-centric, and judgement-intensive areas of work  Consistent and superior engagement with customers  Lower cost to serve customers Compliance and governance improvement  Improvement in SLA compliance, audits, governance  Timely reporting and appropriate enforcement of rules 50% Improvement in operational metrics 39% Improvement in SLA compliance 100% Enterprises seeing happier employees 78% Enterprises seeing significant impact Benefits from RPA Comments Pinnacle Enterprise performance

24. Proprietary & Confidential. © 2018, Everest Global, Inc. 24® Experian (an RPA Pinnacle Enterprise) derives upwards of 10X productivity increase through a harmonized adoption of Lean and automation ControlMeasureDefine Analyze Improve ● RPA is a key component within the “Improve” step of the DMAIC cycle ● Assess opportunity to apply robotics to improve productivity, quality, accuracy, etc. ● Modify the process (as needed) to incorporate automation ● Configure and test robot; configure performance dashboard ● Train and coach people on the required tools/methodologies ● Conduct follow-ups to ensure desired outcomes are achieved 60-70% 400-800% Lean only Lean & RPA 98% 6X Strategy and approach for RPA Key outcomes Average productivity improvement (over baseline) Average transaction success rate Growth in cost savings from combined Lean & RPA implementation

27. Proprietary & Confidential. © 2018, Everest Global, Inc. 27® Pinnacle Enterprises have better alignment with their IT organizations for RPA implementation have full support from IT or have operations and IT jointly implementing RPA 90% 60% Alignment with security and risk policies before adopting RPA Share of enterprises 100% 30% Pinnacle Enterprises Other enterprises Level of support from IT for RPA Pinnacle Enterprises Other Enterprises

28. Proprietary & Confidential. © 2018, Everest Global, Inc. 28® The IT organization performs multiple responsibilities in the enterprise RPA journey Role of IT in RPA implementation Help select and own RPA technology Manage and integrate RPA technology Provide supporting infrastructure Review and mitigate risk and security implications Standardize technology/tools Ensure conformance with enterprise performance standards Sync bots with application & infrastructure changes

31. Proprietary & Confidential. © 2018, Everest Global, Inc. 31® Cost savings impact increases with potential extent of automation in the process RPA cost savings1 based on complexity of work / extent of automation 6% 12% 19% 26% 33% 40% 0% 10% 20% 30% 40% 50% 10% 20% 30% 40% 50% 60% Potential extent of automation Percentagecostsavings Judgement-based Rule-based 1 The analysis considers the impact of change in potential extent of automation, while keeping other factors constant

32. Proprietary & Confidential. © 2018, Everest Global, Inc. 32® RPA use cases are available beyond transactional activities Process evaluation for RPA applicability We are using RPA to collate financial insights for small enterprises, which were earlier not engaged in this manner. We are expecting an increase in our business with these enterprises as a result of this engagement. – Head of Intelligent Automation, US regional bank We deployed RPA in areas that were earlier not catered to due to lack of bandwidth in the team. These are not high-volume processes, but unique work areas, such as the customer win-back process, which did not get much focus earlier. – Senior Program Manager, US utilities firm Uniqueness of work (Repetitive or unique work) Complexity of work Rules-based or judgement- based Transaction volumes (Low volume or high volume)

34. Proprietary & Confidential. © 2018, Everest Global, Inc. 34® The benefits of RPA are real, but the majority of enterprises are still in the early stages of adoption 1 The impact of RPA on jobs is way overblown; most enterprises do not see RPA as a means to reduce headcount Improved operational effectiveness and enhanced employee and customer experience are key drivers of RPA adoption Successful RPA adopters have a participative – rather than a top-down – approach to drive RPA adoption Successful RPA requires both speed and scale of adoption, so quick decision-making and collaboration are key While RPA is for – and by – operations, IT needs to be an end-to-end partner 2 3 4 5 6 Key implications for enterprises

35. Proprietary & Confidential. © 2018, Everest Global, Inc. 35® How we can help you Want ongoing access to our content, data, and support? Memberships Strategic Sourcing & Vendor Management Global In-house Centers (GICs) Service Delivery Automation Want to stay engaged? Content & interactions Webinars Complimentary reports Future Pinnacle Model™ studies Virtual Roundtables Need expertise to accelerate or guide your journey? Decision support & advisory Workforce optimization Location support Price benchmarking Sourcing planning Service provider rationalization

37. Proprietary & Confidential. © 2018, Everest Global, Inc. 37® Have a question? To ask a question during the Q&A session  Click the question mark (Q&A) button located on right side of your screen. This opens Q&A  Be sure to keep the default set to “send to All Panelists”  Type your question in the box at the bottom of the Q&A box and click the send button  Attendees will receive an email with instructions for downloading today’s presentation  For questions or to learn more about how Everest Group can assist your organization, contact us  To ask a specific follow-up question, please contact the individual directly at the email ID below: – Alan Wolfe: alan.wolfe@everestgrp.com – Michel Janssen: michel.janssen@everestgrp.com – Sakshi Garg: sakshi.garg@everestgrp.com

38. Proprietary & Confidential. © 2018, Everest Global, Inc. 38® About Everest Group Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empower clients to improve organizational efficiency, effectiveness, agility, and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at www.everestgrp.com. Dallas (Headquarters) info@everestgrp.com +1-214-451-3000 Bangalore india@everestgrp.com +91-804-276-4533 Delhi india@everestgrp.com +91-124-496-1000 London unitedkingdom@everestgrp.com +44-207-129-1318 New York info@everestgrp.com +1-646-805-4000 Toronto canada@everestgrp.com +1-416-388-6765 Social Media @EverestGroup @Everest Group Stay connected Website www.everestgrp.com Blog www.sherpasinblueshirts.com Sherpas In Blue Shirts