Threat or Opportunity? -...

1 | September 19, 2016 | © 2016 ExlService Holdings, Inc.

ROBOTICS PROCESS AUTOMATIONThreat or Opportunity?

SEP, 2016


2Robonomics and Trend Overview

Source: TMR Analysis - March 2015

AA & RPA as a disruptive trend could displace ~40% of knowledge workers

by 2018

More hype – than real capabilities and depth with providers as of Q1, 2015

60.5% (CAGR) of Robotics between 2014 to 2020 to reach US $ 4.98 Bn

Clients are now actively exploring Robotics as a sourcing strategy

lever and seeking pilots

Robots made cars, unloaded ships and assembled

products but in today’s enterprise digital age, software

robots are augmenting/replacing physical labor

Cost of Manual Operations

~ 30 % reduction due to outsourcing

~ 15-20 % efficiency from

BPA

+ Onshore operations + Cost Arbitrage

+ Labor Arbitrage

+ Business Process

Automation

Breakthrough outcomes from RPA

+ Robotics Process automation

+ New business-models


Automation, Robotics & AI emerging as disrupting trend in marketplace

Automation and Robotics is growing rapidly…

… and transform the value proposition of the BPM industry

“1/3rd jobs will be replaced by software, robots, and smart machines by 2025 “– Gartner

“RPA* adoption in BPM growing at CAGR of 100+%” – Everest

“45 % of work activities could be automated using already demonstrated technology” – McKinsey

“Automation radically transforms operations, delivering much lower costs while

improving service quality, increasing compliance and decreasing delivery times” – HBR

“RPA* could save companies 20 to 40 % in labor costs” – IRPA

“investment recovery period as short as 6-9 months; and, a generally non-

invasive, easy-to-manage nature” – NASSCOM-Everest

“The potential business benefits of artificial intelligence technologies are much

broader than the cost Savings” – Deloitte

* known as Advanced Automation & Robotics in EXL


We recognize the impact for Clients and BPM Providers, our PoV is …

> Exploring alternatives in the market place

+ Evaluating Advanced Automation, Robotics and Artificial Intelligence for onshore processes

+ Seeding Advanced Automation in outsourced operations leveraging Robotics and Cognition

+ Advanced Automation as an interim approach to Legacy Platform modernization

> Seeking Advanced Automation Consulting from their BPM and other providers

> Attracted to a risk-sharing and outcome based engagement

> Reimagined Digital Operations to achieve accelerated time-to-value,

enhanced customer experience and drive intelligent Business processes

> Increasing share of Automation led Revenue (10-20% to 40-60%)

> Accelerated solution delivery for faster value realization

> Transformational lever for business operations

+ Adjacent Human and BOT queues

+ BOT: Repetitive, High-scale, Cognition

+ Human: Exceptions, Hyper-specialization; driving up Offshore Value Chain

Clients

BPM Providers


… to enable Breakthrough Outcomes for our Clients …

> Bottom-line impact through new commercial engagement models (Outcome Based Pricing,

Transaction Based Pricing, Gain Share)

> Top-line impact driven by reduced business process cycle time, enabling Clients to handle

increased transaction volumes

> Enhanced Customer centricity through Advanced Technologies (Mobility, AI, Machine

Learning, NLP, NLG) and Customer experience through unattended automation

> Reduce risk of failure in adopting new technology by seeding in outsourced operations and

transferring risk to BPM providers

> Rapid process transformation without prohibitive upfront investment in legacy

Technology modernization

> Breakthrough outcomes in traditional process performance matrices : operating cost,

accuracy, quality and compliance adherence


6

Operational:

Efficient and Effective Operations

Reduced Risk of Skill and Knowledge Loss

Improved Accuracy and Reduced Risks of Errors

Economic:

Reduced Cost of Operations

Outcomes based Pricing Model

Re-assign Experienced Resources to Higher Value Activities

Strategic:

Competitive Business Performance Advantage

Enabling Accelerated Growth

Improved Customer Loyalty

Key Drivers for Advanced Automation


Case Studies


8

August 25, 2016 | © 2016 EXL Confidential

The healthcare industry has a tremendous need for automation and the success of customers

in the industry has been the driving force for innovation.

Healthcare is process intensive it is challenged by consolidation and needs to adjust quickly to

demand for healthcare services

As it’s constantly growing and expanding, extremely dependent on technology, they are

highly regulated, demanding privacy and data security issues where information sharing and

transmitting is critical

Consolidations have created a need for merging, sharing, and storing medical data among

facilities that was originally created using incompatible systems

Health insurance plans are continuously seeking ways to grow revenue by becoming more

consumer focused and rapidly bringing new products to market, while at the same time

driving down costs and improving service through improved IT and process efficiencies

View of Robotics and Automation in Healthcare

Source: Network Automation Inc.


9

August 25, 2016 | © 2016 EXL Confidential

Benefits of RPA in Healthcare

17%

20%

11%

11%

28%

20%

30%

29%

28%

22%

34%

37%

47%

40%

39%

39%

41%

50%

Member / provider customer support

Medical management

Fraud and abuse services

Overpayment recovery services

Claims coding and processing

Enrolling and billing services

Areas where RPA can offer benefit going forward in Healthcare industry and specific

functional areas

From 1 year ago Expected 1-2 years Expected in 5-7 years

In healthcare, claims processing consumes a significant amount of time, effort and manpower across markets

worldwide. With a centralized, enterprise-wide rule-based process oriented system already established, RPA

can:

Help significantly drive down operational costs

Improve accuracy and turnaround time

Enhance end customer experience

Significantly lower the possibility of claim frauds and litigation

Source: Mindfields - Robotic Process Automation


Background

EXL processes Group insurance enrollments along

with amendment requests. Depending on

benefits and coverage, premium is decided for

each member to be enrolled.

Solution Functionalities

Auto extraction and data update in Client system

Automated rules based decision making

State –wise exceptional applied automatically

Flagging for any special instructions

Challenges

Each enrollment takes approx. 20 mins

Each benefits / coverage change takes 8-10 mins

Peak season volume variation becomes bottleneck

for on-time clearance

Benefits

30% faster turnaround of member requests

Increases productivity by 1.5 times*

Enhanced customer satisfaction

Productivity

increase

1.5 x

Faster turnaround

of Member

requests

30%

EXL’sBenEligibility

ADVANCED AUTOMATION

* Restricted by client’s systems availability, productivity could be enhanced further

EXL SolutionPartner Solution

GROUP HEALTHCARE INSURANCE ELIGIBILITY SERVICES ENROLLMENT, BENEFIT AND COVERAGES

Solution: BenEligibilityBOT extracts data from member’s service request, checks for the

eligibility in client’s mainframe and updates member account for eligible benefits

Case Study – Healthcare


11EXL’s AA and RPA: Nomenclature and Definition

> work productivity focus

> improve efficiency by identifying/diagnosing process

inefficiencies and fixing them by restructuring

processes and by automating process-steps

> emphasis on aiding FTEs in their decision making

through business-rules and packaged analytics

> focus is on creating relevant tools and wrappers

wherever possible

> time-to-implement and time-to-value is higher

because it requires complex development/integration

> still results in human FTEs with improved processes and

systems and doesn’t solve for 24 X 7 operations

> worker elimination focus

> Break-through outcomes by identifying routine and

repetitive human activities within a process or process-

step that is replaced with virtual FTE

> emphasis on automated decision making by deriving

common (progressively complex) decision making patterns

> focus is on technology agnostic RPA implementations

are, works on broad tool-kits, menus, parameters

> time-to-value is faster because RPA works mostly non-

intrusively, doesn’t require complex integration

> Cost of operations are lower due to manual work

elimination,, 24 X 7 and tireless operations by robots

EXL’s Advanced Automation (AA)

Business Process Automation “BPA”Human FTEs, working on optimized processes and

automated systems, targeting efficiency

Robotic Process Automation “RPA”Virtual FTEs, working round the clock on highly

standard and repetitive processes

combination of BPA and RPA, providing break-through outcomes


EXL’s Advanced Automation & Robotics provides Transformational

outcomes in Outsourced Operations Management and beyond …

Reimagining

business processes

and customer

journey through

design-thinking

approach

Transforming

business processes

embedding

Advanced

Automation and

Cognitive solutionsTransformational Solutions

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