Management Journals | Operations Management

The IUP Journal of Operations Management

Impact of RPA on Procurement Process of Service Industry MNCs in India

Article Details

Pub. Date	: Aug, 2023
Product Name	: The IUP Journal of Operations Management
Product Type	: Article
Product Code	: IJOM030823
Author Name	: Prashant Gupta and Avinash Gupta
Availability	: YES
Subject/Domain	: Management
Download Format	: PDF Format
No. of Pages	: 13

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Abstract

The popularity of Robotic Process Automation (RPA) is increasing, as it helps reduce costs, restructure processing and drives better customer experiences. It is easy to use in business units, does not require any individual to additionally learn new tools or ask IT teams for support, and does not require any changes to be made to the existing IT infrastructure of an organization. Further, it is important to recognize that in contemporary times, the procurement process has become much more than purchasing goods and services on dayto- day basis. The procurement process provides added value in the long run. The paper assesses the impact of RPA on procurement process in MNCs operating in the Indian service industry, specifically in the Delhi NCR region in India.

Introduction

Robotic Process Automation (RPA) has become a huge trend in many industries, and it is predicted to expand even more. In 2020, the RPA market was estimated to be $2.5 bn, having grown at a Compound Annual Growth Rate (CAGR) of between 70 and 80% over 2 years. Any business process which satisfies the rule of thumb (rules-based, repeatable, manual and monotonous job) can be automated with the help of RPA. RPA mimics the way humans interact with software to perform high-volume and repeatable tasks. The RPA software is usually referred to as a bot; it replicates how the human would interact with an application or system and then automates that task. RPA technology involves software programs or bots that can log into applications, enter data, calculate and complete tasks, and copy data between applications or workflow as required. Siddhartha Sharad, Director at consultancy Pace Harmon, stated, "An RPA bot normally executes the automated tasks the same way a human would, i.e., logging into systems with an ID, entering data, gathering output or results, performing the rule-based tasks, etc." In order to explain the widespread use of RPA (and why so