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The Intelligent Automation industry is on the cusp of incredible growth. By 2028, it’s projected to reach an astounding USD 200-240 Bn, from today’s USD 50-60 Bn. As of now, Intelligent Automation Services represent a USD 23-25 Bn component of the overall market. What’s captivating is the projection that the ratio of outsourced services within this domain, presently constituting 45% of total expenditure, is set to surge to 70% by 2028. This presents a tremendous opportunity for Intelligent Automation Service Providers to capitalize on the rising demand from businesses looking to delegate the conceptualization, execution, and management of their Intelligent Automation programs.
1. Diversifying Intelligent Automation Services Beyond RPA
The top-notch automation service providers are smartly expanding their tech toolkit beyond Robotic Process Automation (RPA). What’s truly impressive is that 72% of these SPs have diversified their tech portfolio to encompass Intelligent Document Processing (IDP), Intelligent Virtual Agents (IVA), Low Code/No Code (LC/NC), and Process Intelligence (PI). Notably, half of these visionaries have leveraged these technologies to build Intellectual Property, in addition to their proficiency in RPA. To top it all, 77% of these frontrunners have equipped their workforce with extensive training and certifications across the entire spectrum of Automation tech, demonstrating their versatility and readiness for the future.
2. Future proofing with Intelligent Content Generation (ICG)
The strategic focus of Automation Service providers in Generative AI, often referred to as Gen AI, revolves around harnessing this transformative technology to tackle emerging use cases and seamlessly weave it into their Automation toolkit. Their ultimate goal? Delivering a seamless and unparalleled experience to partners, customers, and employees.
Here’s a closer look at the multifaceted initiatives underway:
3. Pivoting Towards Industry-Specific Solutions
Service providers are diving into industry-specific Automation Solutions. This shift reflects the evolution of demand in the Automation landscape, with a greater focus on sector specific use cases rather than generalized functions. Drawing on their domain expertise, service providers are creating tailored industry solutions, giving them a competitive advantage and a remarkable 38% boost in increasing deal sizes and sales. Specialized teams further enhance trust and relevance with clients, help navigate compliance intricacies, and reduce legal risks related to sector-specific regulations. Moreover, Service Providers are refining their messaging tactics, utilizing industry-specific blogs, articles, and case studies to showcase their expertise in the field, in addition to collaborating with specialized sector-focused platforms.
4. Acquiring for Growth
In the past year, Service Providers pursued 31 M&A deals, to supercharge their growth. Interestingly, boutique service providers, typically with revenues less than USD 100 Mn, had a big part to play, contributing to 45% of these deals completed between 2018 and 2023. So, why all the fuss? Well, amongst other reasons, 25%-30% were gunning for market consolidation, 25-30% had their eyes on expanding geographically (with a strong focus on US). 30-35% were specializing in platforms like MuleSoft, and 15-20% were on a mission to level up their tech play, especially in the Low-Code space.
5. Deepening Platform Partnerships
Service Providers are deepening partnerships with Automation Platforms to access exclusive advantages and enable joint go-to-market initiatives. These 360-degree partnership enable Service Providers to participate in large deals as vendors expand their business footprint. Additionally, they expand their customer reach via the platform’s network and secure essential technical support from vendors, enhancing their deal success rates. Partnering with top-tier vendors not only boosts Service Providers’ brand recognition but also offers the potential for product roadmap influence.
6. Embracing Managed Services Model
Automation Service Providers are expanding their managed services with a variety of offerings, including advisory, support, training, implementation, and specialized services. In addition, they are shifting their business models towards usage-based billing, moving away from traditional fixed pricing or time and material contracts. A CXO survey of enterprises adopting automation indicates that, up to 2026, the popularity of outcome-based pricing models is expected to outpace other pricing strategies.
In the vanguard of innovation, service providers are championing the cause for ethical AI by crafting explainable and impartial systems, deploying risk assessment tools, and advocating for the conscientious employment of AI technologies. They are also proactively investing in extensive training programs, honing expertise in AI and cutting-edge technologies like large language models—the foundation of Generative AI—to prepare their workforce for the impending wave of technological transformation. Parallelly, an influx of government contracts marks a burgeoning growth area, as state-led policy measures catalyze engagement with AI and intelligent automation services. These strategic advancements are pivotal, setting the stage for an upcoming era of growth and breakthroughs in the field.
Download the report now for key insights, statistics, real-world framework integration examples, evolution roadmap, and practical recommendations on responsibly accelerating your automation transformation journey
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