Robotics process automation (RPA) firms may not be able to hold on to their high valuations for long as several factors are likely to take a toll on their growth.
For instance, intense competition from global tech giants such as Microsoft and IBM apart from IT services firms is likely to change the RPA landscape. This, in turn, will lead to dilution in valuation.
“Early technologies go through a hype cycle when valuations usually go overboard (like in the case of RPA firms). This is nothing but the process of evolution for any new technology,” said Sanchit Vir Gogia, founder and chief executive officer (CEO), Greyhound Research.