RPA is a much-needed technology for every business. It allows businesses to automate time-consuming and repetitive tasks, allowing employees to work on value-addition tasks. RPA bots or digital workers can perform the same work as humans without error or needing to take a break. Real All About RPA as a Service.
It is a win-win situation for businesses and employees. Businesses see improvements in productivity and efficiency, while employees get to work on more rewarding tasks. Many businesses shy away from implementing RPA due to the costs involved. On top of it, most RPA vendors have already increased pricing by more than 4X.
In such a case, implementing RPA has become a challenge. However, don’t worry, as there is a perfectly viable alternative. Many companies are now offering RPA as a Service in the UAE and worldwide. It allows businesses to benefit from RPA without worrying about upfront costs.
The best thing about RPA is that it is easily integrated with existing systems. Simply put, businesses don’t have to worry about RPA implementation costs nor need to invest in new infrastructure. It makes RPA a worthwhile investment and something they must actively consider to remain competitive.
Let’s discuss the top reasons behind RPA vendors’ decision to increase prices.
Reasons Behind the Price Increases
There are several plausible explanations behind the price increases. They include:
Low Demand Post Pandemic
During the pandemic, every business was all about digitalization. Therefore, they experimented with new technologies, which enabled them to offer a better digital experience. However, companies could not anticipate the dip in demand once the pandemic subsided.
Most mistakenly believed that current market trends will remain dominant regardless of whether the world moves towards the post-pandemic stage. To ensure that the business continues to grow as it did during the pandemic, the RPA vendors have increased prices.
This move is somewhat similar to the ones adopted by other tech companies. During the pandemic, tech companies like Meta, Google, Amazon, and others went on a hiring spree to match the demand. Demand is turning to normal in the post-pandemic world, so they are laying off workers to ensure profitability.
Intensified Market Competition
Another reason behind the price increase is the entry of new players in the RPA industry. With the advent of low-code/no-code RPA platforms, the competition is at an all-time high. This competition has reduced the market share of major players, thereby reducing their profitability.
Instead of responding to the competition by offering new innovative features or cutting prices, RPA vendors are increasing prices. The idea is to try and improve profitability by raising prices. With this revenue, the vendors plan to improve their offerings and introduce new products.
Integration with Emerging Technologies
Lastly, RPA is an evolving technology. RPA vendors are now integrating it with other technologies, such as artificial intelligence. This integration does not come cheap. It requires considerable work on the part of the RPA platforms. The platform must hire skilled RPA developers and undertake research and development.
All this requires money and time. Therefore, they have no choice but to pass these costs on to the customer. Indeed, the goal of every business is to create wealth for its shareholders. RPA platforms are no different. Thus, they have no option but to pass the costs to the customers in order to remain financially viable.
Conclusion
It concludes the reasons behind the price increases by RPA vendors. If you are looking to implement in your organisation, look for RPA as a Service vendor. They are much more cost-effective compared to traditional RPA pricing models.
