@MS Techie The better option would be using the Azure function
- You can create the on-prem services public facing (that can be accessed over the internet) that will execute your PowerShell script.
- Create a VPN connection and Integrate a Function App with an Azure Virtual Network so your on-premise service can be called over the secure channel.
- Hybrid connection would be another option to look into.
The second option would be a better option for you to Integrate Azure Functions with an Azure virtual network by using private endpoints.
Alternative for the logic app you can either call the azure function from logic app or create the custom connector and use OPDG to communicate with your on-premise services as Alankinane answer.