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2021-09-03T05:14:00Z

How can a smaller RPA System Integrator scale their business?

53

Hello professionals,

When it comes to RPA System Integrator (SI) vendors, the majority of large IT services firms take the center stage and are mostly being heavily supported by product vendors directly. 

However, smaller firms struggle to establish their business without much support from product vendors. Any thoughts on how SMBs can scale the RPA business (especially, in the North American region)?

I appreciate your inputs.

ITCS user
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811 Answers

author avatar
Top 20MSP

Hi @Celestine,


It's about catching the long tail for most of the SMB / SMEs who cannot afford large/big RPA vendors and Integrators and are always on the lookout for cost-effective RPA solutions for automating their processes.


It's about what unique you can offer in terms of Products, features, services, support to those SMB/SMEs.


Is your RPA solution cost-effective and can scale with time?


Is your RPA solution open-source or license-driven?


So, find the blue ocean that you can create your own space for your RPA solution and you should be good to go.


That's my personal experience working with SMBs/SMEs businesses as well as medium to large enterprises digitizing their processes, building applications, systems. They are always on the lookout for system integrators who can offer value for money.


Thanks,


Ram

2021-09-09T07:37:28Z
author avatar
Top 5Real User

Hi @Celestine ​


Firstly, I have come across many successful smaller SI vendors over the years. Each was able to compete very successfully with larger players.


For RPA specifically, there are huge opportunities, but only for those who stop thinking they are just smaller versions of the big guys. Some of the questions I would ask you to ask yourselves include:

1. What specific problems do you address, and have proven experience in solving?


2. What industry verticals do you focus on, what geographic focus (and experience) do you have?


3. Are you only trying to build relationships with the largest RPA vendors? Or have you tried to build them with smaller players who might be more grateful for partners?


4. Are you investing in marketing your services/offerings, or are you relying on leads from RPA vendors? All RPA players are more likely to put time and attention into partnering with people who bring them leads.


5. Do you offer a range of related solutions and skills e.g process modeling and process mining? Many customers prefer an SI that can meet the full needs, rather than just RPA.


I could go on, but I think this list should both help and cause you to question how you can both add value and differentiate.

2021-09-08T09:23:44Z
author avatar
Top 5Reseller

RPA is a breakthrough technology that improves a company's efficiency and productivity while reducing operating expenses. But to do that effectively we would contend your company needs to evaluate how it currently does business. 


Vendors of RPA are more interested in selling RPA than helping your company evaluate the long-term benefits of RPA to your business' day-to-operations. And I'm not recommending engaging a consulting firm because in a week (or even with a month engagement) they can't determine how your business really works or its culture. Take the time to do those yourselves - it will pay dividends. 


If your company requires a method to do that let us know, and we are not selling consulting.


Regards, 


Jack Frano

2021-09-13T20:43:05Z
author avatar
Top 10Vendor

Tangentia has beaten Big4s not only in the US or Canada but in India as well in tenders and in the private sector. 


And this is not about sacrificing your profit margins. We need to change our mindset. I know big players who are ready to automate the process even in Rs. 1 L.


Plus, if your solution projection is correct, any RPA partner can scale + a good sales team is a must.

2021-09-08T14:10:44Z
author avatar
User

This might be true when UIPath and Automation Anywhere were the sole players in the RPA market and before the upcoming of the LCNC (Low-Code-No-Code) big wave of software. 


As more and more vendors come into the RPA market, new and more flexible pricing models come too. 


One such example is Microsoft Power Automate, where pricing is done per user, making it more accessible to SMBs. 


Also, LCNC makes it easy for any business to start with RPAs, not depending so much on a costly programmer team.

2021-09-08T13:14:43Z
author avatar
ExpertModeratorReal User

Hi @Celestine ​, The way forward for expanding business in RPA is to go in as (RPAaaS) Robotic Process Automation as a Service.


                            As a service provider and win faster.


In 2020, small companies increased their spending on MSP services by more than 15%. They don’t want the software; they just want their UI automation and data migration problems to be solved by trusted service providers.


Such an approach opens the RPA market for smaller MSPs with dozens, not hundreds of developers on board. Implementing an approach that favors those who are willing to invest in building expertise is better than building an entry barrier to MSPs that are just small.


An RPA vendor can strive to work with the Big Four only, but there are greater prospects in a new generation of nimble entrepreneurs and IT execs who realize that enterprise models offered by almost all RPA vendors would not work for serving smaller companies.


As a result, Service Model for RPA works wonders.


The Future Of RPA


It's a service model in which entrepreneurs acquire tools to service clients in the market. Many of the customers bill their clients for the service and not the IT solution, accelerating procurement on their client end and helping customers win over bigger competitors who bring a different vendor onboard. They are building their own SaaS businesses that would typically include subscriptions for bot maintenance and admin.


The future of RPA is SMB and midmarket. I believe that laying the foundations for the new generation of RPA integrators that adopt a service model and bring diverse talent to this business will enable RPA-powered digital transformation worldwide. That is the key mission all RPA vendors should commit their forces to in 2021-22.

What do you feel about my views...?

2021-09-05T10:42:15Z
author avatarCelestine
Top 5LeaderboardReal User

@Shibu Babuchandran, valid points. 
When SMBs base their outreach, it is usually in the mid-market space which is not so very strong in technological vision neither they have the tolerance for the cost of a solution. 
In the Covid backdrop, most of the mid-market companies have parked their transformation agenda and moved on. Just wondering how a breakthrough could happen! 
As you mentioned, a redefined service model actually helps and it will be a win-win for both sides.

author avatarShibu Babuchandran
ExpertModeratorReal User

@Celestine Yes very true, it has worked out well for us with some of our existing customers . Extending automation as a service to our customers has worked well and the billing has really improved .

author avatar
Top 20Real User

Offer consulting services on business process management and automation program implementation. Not to mention vendor management!  


Unfortunately, you might not want to hear this if you are a "System Integrator" that is a reseller of software.

2021-09-17T14:14:36Z
author avatar
Top 5Reseller

Scaling with most RPA sellers depends on the number of robots you initially purchase and then how many you may want to add for your growing business.

Questions? Contact Jack Frano at jfrano@adaptivegrowth.com.

2021-09-08T20:14:02Z
author avatarShibu Babuchandran
ExpertModeratorReal User

@Jack Frano The number of bots required needs to be determined with the number of process automation , frequency of utilization  . This will help investing in the right number of bots and bringing cost saving. There have been instances where a single bot is utilized only for a single critical process in a day and lying idle which is a wastage of resources. By identifying the right process and the utilization you can arrive at the right number of bots to be invested.

Find out what your peers are saying about UiPath, Automation Anywhere, Microsoft and others in Robotic Process Automation (RPA). Updated: October 2021.
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