View the webinar replay here: http://www.hfsresearch.com/webinars/hfs-webinar-unveiling-the-2017-rpa-blueprint-snapshot Tired of the endless hype marketing, the expensively designed conference booths, the mind-numbing articles about robots stealing our jobs? When you have a small number of, let's face it, small software firms sending such shockwaves through the global operations and outsourcing industry, it's no surprise we have so many of you scratching your heads wondering what is real versus fake news... wondering how "real" RPA is, versus all the claimed success and failure stories. So let's tone down the rhetoric and reveal what is really happening in the industry. Based on new HfS State of Industry research of over 450 enterprise buyers, and our new HfS blueprints that will cover the leading RPA software platforms, we’ll give you a much needed reality check. HfS CEO Phil Fersht and SVP Intelligent Automation Tom Reuner discuss the following: - The state of the RPA market in 2017 - what is the current adoption versus the hype? - How is the market evolving for emerging RPA and cognitive solutions... is the HfS Continuum taking shape? - What are the key drivers and inhibitors? - How are the leading RPAs performing, in terms of the famous HfS Innovation and Execution Blueprint criteria? - Which vendors are doing the best in terms of features, functionalities and driving their partner ecosystems? - What's been the impact of "Free RPA" - is it disrupting the market? - What can we expect next, with all the political unpredictability, outsourcing turmoil and general cloud of confusion surround our industry?

1. The Services Research Company
The 2017 RPA Blueprint Snapshot
Webinar, February 22nd, 2016
Phil Fersht, CEO and Chief Analyst, HfS Research
phil.fersht@hfsresearch.com
@pfersht #hfsresearch
Tom Reuner, SVP, HfS Research
tom.reuner@hfsresearch.com
@tom_reuner #hfsresearch

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Overview:
• Industry analyst, author, speaker, strategist, entrepreneur and blogger
• 20 years’ in the global IT and business process outsourcing and shared
services industry spanning analyst and consulting roles
• Coined the “As-a-Service Economy” in 2014
• Coined the “Digital OneOfficeTM” in 2017
• Advised and on 100’s of global IT services, BPO and shared services
engagements
• Overseas the largest global network of enterprise services and
operations professionals
Career Experience:
• Founded HfS Research in 2010, overseeing an unprecedented growth
story in the analyst industry
• Practice Lead, Global IT Services & BPO Research, Gartner, Inc
• Global BPO Marketplace Leader, Deloitte Consulting
• Consulting Practice Head, IDC Asia/Pacific
• European IT Markets Practice Lead, IDC Europe
Education:
• BSc. Honors in Business & Technology, Coventry University, UK
• Diplôme Universitaire de Technologie in Business & Technology,
University of Grenoble, France
phil.fersht@hfsresearch.com
@pfersht
Web: hfsresearch.com
Blog: horsesforsources.com
Phil Fersht, Chief Analyst and CEO, HfS Research

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HfS Research Has Been Writing About Intelligent
Automation for 5+ Years

5. © 2017 HfS Research Ltd.
C-Suite wants OneOffice integration, predictive real-time data
and speed to market – while aggressively driving down costs
How critical are the following C-Suite directives to your operations strategy? (SVPs and above) )
20%
22%
24%
26%
29%
30%
31%
31%
42%
48%
46%
38%
55%
50%
45%
48%
48%
43%
19%
19%
17%
13%
17%
20%
15%
15%
8%
12%
12%
21%
5%
4%
5%
6%
6%
7%
Invest in cognitive technologies and machine learning to reduce
reliance on mid/high skilled labor
Invest in process automation and robotics to reduce reliance on
low-skilled labor
Policies that restrict the hiring of people
Improve the quality of operations talent
Scalable / Flexible services
Accelerate speed to market with new products
Create real-time data that supports predictive, not reactive
decisions
Align middle/back office operations to improve customer
experiences
Drive down operating costs
Mission Critical Increasingly Important Emerging Not a Directive
Source: HfS Research in Conjunction with KPMG, “State of Operations and Outsourcing 2017”
Sample: n=454 Enterprise Buyers

6. © 2017 HfS Research Ltd.
C-Suite Directives in 2017: Technology Drives Talent!
How critical are the following C-Suite directives to your operations strategy? (“Mission
Critical” responses – all buyers)
0%
20%
40%
60%
80%
Drive down
operating costs
Accelerate speed
to market with
new products
Create real-time
data that
supports
predictive, not
reactive
decisions
Align
middle/back
office operations
to improve
customer
experiences
Improve the
quality of
operations talent
Policies that
restrict the hiring
of people
Invest in process
automation and
robotics to
reduce reliance
on low-skilled
labor
Invest in
cognitive
technologies and
machine learning
to reduce
reliance on
mid/high skilled
labor
BFSI Manufacturing Healthcare & Life Sciences Retail Software & Hi Tech Energy & Utilities
Source: HfS Research in Conjunction with KPMG, “State of Operations and Outsourcing 2017”
Sample: n=454 Enterprise Buyers

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The Future of Operations: The Digital OneOfficeTM Organization
Source: HfS Research 2017

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Intelligent Automation is underway for well over half of
$Billion+ Enterprises
What is the most impactful timing to begin these actions?
19%
18%
19%
20%
24%
21%
23%
31%
33%
33%
32%
30%
34%
34%
30%
32%
29%
26%
30%
28%
26%
15%
11%
13%
16%
12%
10%
12%
6%
6%
7%
5%
4%
7%
4%
Accomplish creative problem solving / "Design
Thinking"
Retrain existing internal operations talent to
redesign processes
Invest in specialized change management support
to reorient operations staff
Invest in internal IT talent to help us migrate away
from legacy systems
Invest in effective analytics tools & skill
Identify / hire a transformational leader / change
agent
Invest in intelligent automation
Now Within the next year Within 3 years Within 5 years Never
Source: “Intelligent Operations" Study, HfS Research 2016
Sample: Buyers = 371

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Source: Bureau of Labor Statistics, HfS Research Analysis (data to 2015)
Recessions destroy jobs, not robots…
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Annual Job Growth US

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tom.reuner@hfsresearch.com
Overview
§ Tom Reuner is Senior Vice President, Intelligent Automation and IT
Services at HfS. Tom is responsible for driving the HfS research agenda
for Intelligent Automation and IT Services. Automation cuts across the
whole gamut ranging from RPA to Autonomics to Cognitive Computing
and Artificial Intelligence. This includes increasingly the intersections of
unstructured data, Analytics, and Cognitive Automation while mobilizing
the HfS analysts to research Intelligent Automation dynamics across
specific industries and business functions. Furthermore, he is supporting
HfS’ push to disrupt IT Services research by focusing on application
services and testing. A central theme for all his research is the increasing
linkages between technological evolution and evolution in the delivery of
business processes.
Previous Experience
§ Tom’s deep understanding of the dynamics of this market comes from
having held senior positions with Gartner, Ovum and KPMG Consulting
in the UK and with IDC in Germany where his responsibilities ranged
from research and consulting to business development. He has always
been involved in advising clients on the formulation of strategies,
guiding them through methodologies and analytical data and working
with clients to develop impactful and actionable insights. Tom is
frequently quoted in the leading business and national press, appeared
on TV and is a regular presenter at conferences.
Education
§ Tom has a PhD in History from the University of Göttingen in Germany.
Tom Reuner, SVP, HfS Research

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Automation Really is in the Eye of the Beholder

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…and RPA is no Different
Other/Acces
s to
sourcing
decisions
Core RPA
capabilities
Front
office
BPM
ERP
Productivity
tools
RPA
positioning

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Understanding the Methodology behind the Blueprint
Market-led with sourcing focus, not functions and features
Input from partners, sourcing advisors, fellow HfS analysts and
other stakeholders key
Evaluation across set of weighted criteria in execution and
innovation; focus on enabling transformation and un-attended
automation
RFI send to RPA providers
Expanding the research of HfS Intelligent Automation, building
on Intelligent Automation Blueprint and RPA Premier League
Table
Focus on “core RPA” not RDA or other adjacent capabilities;
proprietary tools (EdgeVerve, SyntBots etc.) not in scope

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Lessons and Insights from the Blueprint Research
Duopoly of AutomationAnywhere and Blue Prism: Behind the two market
leaders, UiPath is growing strongly and Pega gets increasingly added to the mix.
Congratulation to all the providers in the Winners’ Circle!!
It is about transformation stupid! Market is shifting toward transformational
projects with end-to-end perspective. Consultancies and pure-plays coming to the
fore. However, M&A likely to absorb pure-plays
Move toward Cognitive Automation and Automation Ecosystems: Shift from early
notions of turn-key solutions toward broad cognitive capabilities and the ability
to demonstrate open standards and ecosystems mindset
Data curation is critical: Applying Cognitive and machine learning solutions to IA
and RPA requires access to large amounts of relevant data to build reliable models
War for talent: Acute lack of talent understanding the implications of RPA
technologies on process chains and workflows. Certifications double-edge sword as
they might accelerate attrition
Smoke and mirrors add to confusion: The confusion around RPA vs. RDAs as well
as the lack of clarity as to how coding and scripting is needed for deployments. Many
projects are sold as ”Managed Service„ confounding automation proposition

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The 2017 RPA Blueprint Snapshot

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WorkFusion (and Commoditization) are Challenging the
Fundamentals of RPA
Intelligent Automation:
Virtual Agents, Deep Learning, Self-remediation
RPA extension:
Operational analytics,
Machine Learning

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The Future of RPA in 2017 and beyond
RPA will remain undefined. Over the next 12
months, the perception of RPA will remain blurred.
RPA capabilities will fold into broad propositions
such as Digital Workforces or Cognitive Automation.
M&A through ISVs. Buyers will have to do scenario
planning for acquisitions. While this might bring
broader capabilities, licensing costs are likely to
increase as well. Pega’s acquisition of OpenSpan is
the template for such developments.
The emergence of Automation Ecosystems: We
already have seen the impact of Watson, as it is
starting to evolve into an ecosystem. But it could
equally be one of the tool providers significantly
expanding its reach At the same time, we are seeing
providers like Blue Prism and UiPath being deployed
in IT-centric scenarios such as IT Help Desk and
Application Management, pointing to a
convergence of scenarios and tool sets.

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Endgame: Vertically infused data and insights?!
Insights, Data
Vertical Processes
Vertically infused
insights and data
BPaaS, BPO as-a-stack,
Industry platforms.
Machine learning,
Neural networks,
Enterprise search,
Artificial intelligence
Analytics

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The Key Take-aways
§ While not clearly defined, the market for RPA is set to enter phase of
exponential growth
§ It is a question of where, how, at what scale and under which name
§ RDA and proprietary tools not focus of this study
§ AutomationAnywhere, Blue Prism, UiPath and Pega are the early
leaders and educators
§ Service delivery is being decoupled from labour arbitrage
§ RPA is morphing into Cognitive Automation
§ WorkFusions’ free RPA move won’t disrupt the market,
but example for marketing savvy
§ The future of RPA lies in service orchestration and
evolving automation ecosystems

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Questions?

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About HfS Research
HfS Research is The Services Research Company™—the leading analyst authority and global community for business operations and IT
services. The firm helps organizations validate and improve their global operations with world-class research, benchmarking and peer
networking. HfS Research was named "Independent Analyst Firm of the Year for 2016" by the Institute of Industry Analyst Relations
which voted on 170 other leading analysts. HfS Chief Analyst, Phil Fersht, was named Analyst of the Year in 2016 for the third time.
HfS coined the terms "The As-a-Service Economy" and "OneOffice™", which describe HfS Research's vision for the future of global
operations and the impact of cognitive automation and digital technologies. HfS' vision is centered on creating the digital customer
experience and an intelligent, single office to enable and support it. HfS’ core mission is about helping clients achieve an integrated
support operation that has the digital prowess to enable its organization to meet customer demand - as and when that demand happens.
With specific practice areas focused on the Digitization of business processes and Design Thinking, Intelligent Automation and
Outsourcing, HfS analysts apply industry knowledge in healthcare, life sciences, retail, manufacturing, energy, utilities,
telecommunications and financial services to form a real viewpoint of the future of business operations.
HfS facilitates a thriving and dynamic global community which contributes to its research and stages several OneOffice™ Summits each
year, bringing together senior service buyers, advisors, providers and technology suppliers in an intimate forum to develop collective
recommendations for the industry and add depth to the firm’s research publications and analyst offerings.
Now in its tenth year of publication, HfS Research’s acclaimed blog Horses for Sources is the most widely read and trusted destination for
unfettered collective insight, research and open debate about sourcing industry issues and developments.
HfS was named Analyst Firm of the Year for 2016, alongside Gartner and Forrester, by leading analyst observer InfluencerRelations.