TCS chief: AI revolution threatens call center jobs
MUMBAI, INDIA — The Chief Executive Officer of outsourcing giant Tata Consultancy Services (TCS) has forecasted a significant shift in the call center industry due to the rapid advancement of artificial intelligence (AI).
In a recent interview with the Financial Times, K. Krithivasan stated that the need for traditional call centers could become “minimal” within a year as generative AI (GenAI) takes over many functions currently performed by human agents.
GenAI to proactively address customer needs
Krithivasan envisions a future where AI chatbots, equipped with the ability to analyze customer transaction histories, will handle tasks traditionally managed by call center workers.
“We are in a situation where the technology should be able to predict a call coming and then proactively address the customer’s pain point,” he explained.
This shift could drastically reduce the volume of incoming calls to call centers.
Job impact and industry concerns
The potential for AI to replace white-collar roles, including those in call centers, has raised concerns among policymakers worldwide.
India, known for its vast IT and business process outsourcing sector that employs over 5 million people, could be significantly affected.
Despite these concerns, Krithivasan remains optimistic about the demand for tech talent, suggesting that the focus should be on training the workforce to meet this demand.
TCS’s growing AI project pipeline
As of March, TCS reported doubling its GenAI project pipeline to $900 million. Krithivasan anticipates this trend to continue, potentially doubling over the next few quarters.
However, he cautions against overestimating the immediate benefits of GenAI, emphasizing that its true impact will be more long-term.
The need for skilled talent
Krithivasan also highlighted the necessity for more workforce training to harness the rising demand for tech talent. He pointed out that a significant portion of India’s graduates are not immediately employable in the industry, underscoring the need to improve the quality of higher education.
TCS itself hires from only a fraction of Indian colleges, with a goal to expand its reach to make more graduates “employable.”
Uncertain economic climate affects IT spending
The TCS CEO also noted that global uncertainties such as inflation, war, and political elections are causing businesses to hesitate in investing in new technology projects.
This has led to a slowdown in the annual currency-adjusted revenue growth for TCS, which fell to 3.4% in the last financial year.
TCS is a multinational information technology service provider and consultancy company headquartered in India. It recently secured the #45 spot in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.
