Flevy Management Insights Q&A
What are the key factors driving the adoption of RPA in emerging markets?


This article provides a detailed response to: What are the key factors driving the adoption of RPA in emerging markets? For a comprehensive understanding of Robotic Process Automation, we also include relevant case studies for further reading and links to Robotic Process Automation best practice resources.

TLDR RPA adoption in emerging markets is driven by the need for Cost Reduction, Efficiency Improvement, Technological Leapfrogging, and improved Regulatory Compliance and Risk Management, positioning organizations for sustainable growth.

Reading time: 5 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Cost Reduction mean?
What does Efficiency Improvement mean?
What does Technological Leapfrogging mean?
What does Regulatory Compliance mean?


Robotic Process Automation (RPA) is increasingly becoming a cornerstone of digital transformation strategies in emerging markets. The adoption of RPA in these regions is driven by a unique set of factors that distinguish them from more developed economies. These factors range from the need to leapfrog technological advancements to the imperative of cost reduction and efficiency improvement in highly competitive markets.

Cost Reduction and Efficiency Improvement

In emerging markets, organizations are under constant pressure to improve efficiency and reduce operational costs to remain competitive. RPA offers a compelling solution by automating routine, repetitive tasks that are traditionally performed by humans. This automation not only reduces labor costs but also minimizes errors, leading to higher quality outcomes. According to a report by McKinsey & Company, RPA can lead to a reduction in operational costs by up to 30% for organizations that implement it effectively. This significant cost saving is a key driver for RPA adoption in emerging markets, where cost competitiveness can be crucial for survival and growth.

Moreover, RPA enables organizations to reallocate their human resources to more strategic, value-adding activities. This shift not only improves operational efficiency but also enhances employee satisfaction by removing mundane tasks from their workload. As a result, organizations can achieve a higher level of productivity and innovation, further driving their competitive advantage in the market.

Real-world examples of cost reduction and efficiency improvement through RPA are abundant in emerging markets. For instance, a leading telecommunications provider in Asia implemented RPA to automate its customer service operations, resulting in a 50% reduction in response time and a 25% decrease in operational costs. Such tangible benefits are compelling reasons for the widespread adoption of RPA in these regions.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Technological Leapfrogging

Emerging markets have the unique opportunity to leapfrog traditional technological advancements by directly adopting cutting-edge technologies. RPA is a critical tool in this leapfrogging process, as it allows organizations to automate processes without the need for extensive infrastructure overhaul. This is particularly important in regions where legacy systems are prevalent, and the cost of replacing them is prohibitively high. By overlaying RPA on existing systems, organizations can achieve significant efficiency gains without the substantial upfront investment typically associated with digital transformation.

Furthermore, the adoption of RPA in emerging markets is facilitated by the increasing availability of affordable, scalable RPA solutions. These solutions are designed to be easily integrated with existing systems, reducing the barriers to entry for organizations looking to embark on their automation journey. As a result, even small and medium-sized enterprises (SMEs) in these markets can leverage RPA to enhance their operational efficiency and competitiveness.

An example of technological leapfrogging through RPA can be seen in the banking sector of a Southeast Asian country, where a mid-sized bank used RPA to automate its loan processing system. This automation allowed the bank to bypass the need for a costly IT infrastructure upgrade, directly enhancing its service delivery speed and customer satisfaction levels.

Improving Regulatory Compliance and Risk Management

Emerging markets often face rapidly evolving regulatory environments, making compliance a moving target for organizations. RPA helps in this regard by automating compliance processes, ensuring that they are executed consistently and without human error. This consistent execution is critical in reducing compliance-related risks and avoiding potential fines or sanctions. For example, Accenture highlights that RPA can enhance compliance processes by automatically generating audit trails, thereby simplifying the audit process and reducing compliance costs.

RPA also plays a crucial role in risk management by providing organizations with the tools to implement controls and monitor risks in real-time. Automated processes are less prone to human error, reducing the likelihood of operational risks. Additionally, RPA can be programmed to identify and alert management to potential risk exposures, allowing for timely intervention.

In the financial services sector of an emerging market, a notable implementation of RPA for improving regulatory compliance involved automating the reporting process to the central bank. This automation ensured timely and accurate reporting, significantly reducing the risk of non-compliance and the associated financial penalties.

Emerging markets are at a critical juncture where the adoption of RPA can significantly influence their growth trajectory. The drivers of RPA adoption in these markets—cost reduction and efficiency improvement, technological leapfrogging, and enhancing regulatory compliance and risk management—are compelling. They not only offer immediate benefits in terms of cost savings and operational efficiencies but also position organizations for sustainable long-term growth. As RPA technology continues to evolve, its adoption in emerging markets is expected to accelerate, further transforming the business landscape in these regions.

Best Practices in Robotic Process Automation

Here are best practices relevant to Robotic Process Automation from the Flevy Marketplace. View all our Robotic Process Automation materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Robotic Process Automation

Robotic Process Automation Case Studies

For a practical understanding of Robotic Process Automation, take a look at these case studies.

Robotic Process Automation in Oil & Gas Logistics

Scenario: The organization is a mid-sized player in the oil & gas industry, focusing on logistics and distribution.

Read Full Case Study

Robotic Process Automation in Metals Industry for Efficiency Gains

Scenario: The organization, a prominent player in the metals industry, is grappling with the challenge of scaling their Robotic Process Automation (RPA) initiatives.

Read Full Case Study

Robotic Process Automation Strategy for D2C Retail in Competitive Market

Scenario: The organization is a direct-to-consumer retailer in the competitive apparel space, struggling with operational efficiency due to outdated and fragmented process automation systems.

Read Full Case Study

Robotic Process Automation Enhancement in Oil & Gas

Scenario: The company, a mid-sized player in the oil & gas sector, is grappling with operational inefficiencies due to outdated and disjointed process automation systems.

Read Full Case Study

Robotic Process Automation in Ecommerce Fulfillment

Scenario: The organization is a mid-sized e-commerce player specializing in lifestyle and wellness products, struggling to manage increasing order volumes and customer service requests.

Read Full Case Study

Robotic Process Automation Initiative for Retail Chain in Competitive Landscape

Scenario: The organization is a mid-sized retail chain specializing in consumer electronics, struggling to maintain operational efficiency in the face of increasing competition.

Read Full Case Study

Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How does RPA integrate with existing legacy systems within an organization?
RPA integration with legacy systems enhances efficiency, accuracy, and cost savings by automating repetitive tasks, bridging technology gaps without extensive changes, and addressing challenges through strategic solutions and best practices. [Read full explanation]
Can RPA be effectively scaled across global operations, and what are the key considerations for doing so?
Scaling RPA globally requires Strategic Planning, Operational Excellence, and addressing cultural dynamics, focusing on process standardization, aligning with organizational goals, establishing a Center of Excellence, choosing scalable solutions, comprehensive training, and effective Change Management. [Read full explanation]
What are the most common pitfalls in RPA project management and how can they be avoided?
Successful RPA implementation requires meticulous Planning and Analysis, effective Stakeholder Engagement and Change Management, and continuous Monitoring and Optimization to avoid pitfalls and maximize benefits. [Read full explanation]
What are the ethical considerations in implementing RPA, particularly regarding workforce displacement?
Implementing RPA requires careful ethical consideration, focusing on Workforce Displacement and Reskilling, Privacy and Data Security, and Transparency and Accountability, to harness its benefits responsibly. [Read full explanation]
How can RPA be integrated with existing legacy systems without disrupting current operations?
Integrating RPA with legacy systems involves Strategic Planning, understanding IT infrastructure, ensuring Technical Compatibility and Compliance, and adopting a phased implementation approach for minimal disruption and Operational Excellence. [Read full explanation]
How does RPA drive innovation and competitive advantage in today's market?
RPA transforms businesses by improving Operational Efficiency, enabling Strategic Resource Allocation, and offering Data-Driven Insights, significantly boosting market position and adaptability. [Read full explanation]

Source: Executive Q&A: Robotic Process Automation Questions, Flevy Management Insights, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.