Robotic process automation: The new IT job killer?

Robotic process automation has higher-value IT tasks in its cross-hairs but could be the best antidote to outsourcing yet

A quiet revolution with a potential impact on the IT workforce reminiscent of outsourcing may be under way in the form of robotic process automation.

Geared toward automating a variety of business and computing processes typically handled by humans, RPA will stir passions at organizations that deploy the technology, with its potential to slash jobs, shake up the relevant skills mix, and if implemented strategically, stave off the specter of outsourcing.

The reason: Thanks to advances in software and artificial intelligence, automation has its sights on higher-value tasks than ever before -- and it’s already having an impact at organizations currently deploying these systems.

What exactly is robotic process automation?

At its core, RPA is “robotic” software that organizations configure to capture and interpret the actions of existing applications employed in various business processes. Once RPA software has been trained to understand specific processes, it can then automatically process transactions, manipulate data, trigger responses, and communicate with other systems as necessary. The technology is designed to reduce or eliminate the need for people to perform high-volume IT support, workflow, remote infrastructure, and back-office processes, such as those found in finance, accounting, supply chain management, customer service, and human resources.

RPA software is composed of multiple components. First, for collection, they employ a variety of tools for grabbing digital data, which can include screen scrapping, digital image recognition, or the ability to access a server or be linked to a website. They also make use of rules engines similar to those found in business process management tools.

“This is the basic requirement, that it works at the graphical user interface layer and doesn't need much, if any, IT support,” says Cathy Tornbohm, vice president BPO (business process outsourcing) research at Gartner. “RPA tools can be built from combining tools that perform the various elements of these tasks.”

On the one hand, RPA promises huge cost savings and the elimination of tedious tasks for IT infrastructure workers. On the other hand, it threatens the very survival of many of the jobs held by those same infrastructure workers.

This time around, automation is after more than manual data-entry positions.

Eating into IT jobs

Not long ago, RPA was “a total mystery” to most organizations, but its potential is now grabbing the attention of IT consulting and advisory firms, outsourcing providers, and enterprises alike, says Frank Casale, a longtime outsourcing expert and founder of the newly formed Institute for Robotic Process Automation (IRPA).

Frank Casale, founder, Institute for Robotic Process Automation

“I would say most IT infrastructure support jobs will be eliminated over the next three years.”

-- Frank Casale, founder, Institute for Robotic Process Automation

“This is a flash trend driven by a combination of really powerful process automation software and artificial intelligence, and following a lot of trial and error” by vendors in the market, Casale says.

IRPA touts the technology’s potential to significantly reduce risk in regulatory reporting, thanks to improved analytics and increased data accuracy. But its estimate that RPA could save companies 20 to 40 percent in labor costs is sure to raise eyebrows, signaling RPA’s clear potential to wreak havoc on the IT workforce. 

“I would say most IT infrastructure support jobs will be eliminated over the next three years,” Casale says. “I’ve already seen [deployments] where there was 60-plus percent labor automation.”

This includes jobs related to IT help desks, data center and server support, network support, and other areas of IT maintenance. While the technology does not currently replace functions such as application development and maintenance, that’s not to say future RPA technology won’t be able to handle some of those tasks, Casale says.

If that sounds ambitious or even unlikely, it still underscores the ongoing evolution of automation toward higher-value jobs.

RPA is most likely to replace data entry and data rekeying or data assembly and formatting tasks, which are rules-based, Gartner’s Tornbohm says. “Almost any type of computer-related process which is rules-based [and] which a human performs today could be affected at some point in its lifecycle, where [RPA] could mimic what a human does,” she says. “It has affected IT in many ways, often in software testing.”

Earlier advances in automation eliminated “blue collar jobs, ones we cannot even remember today, like tape changers,” notes Chris Boos, CEO at RPA provider Arago. “RPA moves the focus of automation up the value chain. At the same time, demand for IT experts is growing for even higher-value jobs, because most companies are struggling to keep up with high-tech development, and this is why RPA is a relief to most IT people.”

Robotic process automation in practice

A.J. Hanna, senior director of operations support, Ascension Health

“Our goal with RPA is to be able to take on additional work without the need to add staff.”

-- A.J. Hanna, senior director of operations support, Ascension Health

Health care provider Ascension Health deployed an RPA system from Blue Prism in early 2014 when it needed a way to avoid time-consuming manual processes associated with its move to a new ERP platform.

“There is work that we refer to as ‘swivel chair’ activities, where we transfer data from one source into the ERP or one of the support systems,” says A.J. Hanna, senior director of operations support at Ascension. “Despite the implementation of the standard ERP, there is still a large volume of local policy variability that has to be addressed.”

The use of RPA didn’t result in the elimination of jobs at the company, but the possibility “certainly exists” in the future, Hanna says. “The impact to frontline processing staff is the greatest potential change to our workforce,” he says. “A large part of our focus is trying to find ways to be able to absorb the additional workload that we know is coming” without having to add staff.

As the company moves more into the automation of rules-based activities, “We anticipate that it will provide staffing reduction opportunities,” Hanna says. “Each of these opportunities will have to be viewed within the context of the known increase in workload volumes that will be coming in 2015 to determine potential impacts to staffing levels.”

Danny Wootton, innovation director, CGI

“It hasn't necessarily been about cost reduction, but more about better service and improving the effectiveness of our people.”

-- Danny Wootton, innovation director, CGI

While Ascension anticipates the potential for staffing reductions, “our goal with RPA is to be able to take on additional work without the need to add staff,” Hanna says. “Any reductions that may come from the use of RPA would be handled through normal attrition.”

Another company, IT services provider CGI, less than a year ago began working with three RPA providers -- Thoughtonomy, Celaton, and Innovise -- for various aspects of process automation. The two main drivers for the project were to achieve increased efficiency across IT and business processes, as well as customer service improvements, says Danny Wootton, innovation director at CGI.

“It hasn't necessarily been about cost reduction, but more about better service and improving the effectiveness of our people,” Wootton says.

CGI has seen reduced efforts across a range of activities, from simple password resets to more complex logic-based activities such as payroll and help-desk problem resolution. Like Ascension Health, the firm at this stage hasn’t seen RPA affect the makeup of the IT workforce. “But it may well be something we need to think about in the future,” Wootton says.

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