India’s $54Bn BPO sector faces disruption from AI and agentic AI
UTTAR PRADESH, INDIA — India’s $54 billion business process outsourcing (BPO) industry is undergoing its most radical shift—driven not by labor costs, but by artificial intelligence.
Companies like Genpact, Tech Mahindra, and WNS are deploying AI to enhance efficiency while keeping humans at the core, reshaping everything from call centers to financial analytics.
AI adoption redefines India’s outsourcing landscape
To help workers focus on better tasks, BPO companies are using AI to take care of repeated duties and are teaching employees new skills. AI that focuses on specific areas is boosting invoice reconciliation, decreasing mistakes, and accelerating how fast tasks are done.
According to Sanjeev Vohra from Genpact, Meanwhile, Birendra Sen of Tech Mahindra notes that AI now manages up to 60% of agent workloads, allowing humans to focus on complex, empathy-driven tasks.
This shift isn’t about job cuts but augmentation. Quatrro’s Raman Roy emphasizes that AI handles routine queries like banking, travel bookings, and mortgage processing while human agents tackle nuanced problem-solving.
WNS CEO Keshav Murugesh adds that despite 30-50% of voice/chat volumes being automated, maintaining human judgment remains critical. This resulted in a “phygital” workforce where AI and employees collaborate seamlessly.
Genpact, Tech Mahindra, Quatrro, and WNS are part of the rankings in the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
Agentic AI drives efficiency, raises workforce questions
Far from shrinking the industry, AI is driving growth. WNS reports that 5% of its fiscal year 2025 revenue comes from AI-powered solutions, such as insurance claims recovery and medical diagnostics.
Similarly, Tech Mahindra’s AI deployments have delivered 3x cost savings in low-complexity tasks while creating demand for roles like AI conversation designers and virtual assistant trainers.
Nasscom’s Sangeeta Gupta confirms the sector is expanding, with 6 to 7% annual growth and new jobs in data annotation and AI strategy.
EY India’s Preeti Anand predicts 50% of call types will be automated, but another 20 to 30% will require AI-assisted humans. “We’re not seeing the end of human contact centers — but an evolution,” Anand said.
Roy stresses, “Organizations that combine AI’s capabilities with human insight will be the ones that thrive,” highlighting that human oversight and human touch are vital in effective AI integration, boosting companies’ success.
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Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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