BPO sector ripe for AI disruption, says TCS CEO K Krithivasan

TCS CEO K Krithivasan said he had predicted that business process outsourcing (BPO) firms were ready for disruption from the latest technologies like artificial intelligence (AI).

"I called out two years ago that BPO is one of the industries that would get disrupted even before the traditional coding. Because there are a lot of opportunities for creating AI agents or agentic AI. Both of them have a very strong role today. You would see that business evolving faster (than others)," he told ET in an interview.

The BPO sector in India, an employee-heavy space and a revenue generator, has seen transformation due to AI disruption. The technology is automating repetitive tasks, improving accuracy, reducing costs, and enhancing service quality.


There has been talk of AI displacing many entry-level and lower-end jobs in call centres, but industry insiders have said that it may simultaneously create high-value roles in data science, AI system development, digital marketing, etc.

These comments come in the wake of French IT services major Capgemini agreeing to buy WNS, an Indian-origin provider of BPO technology, for $3.3 billion (approximately Rs 28,280 crore) in cash.

Capgemini intends to build its BPO muscle with this acquisition. The deal, announced on Monday, will see the two companies pool their capabilities to address the growing enterprise demand for advanced, automated services.

Krithivasan also acknowledged the rise of AI-driven, smaller, agile firms with new delivery models in the IT services sector but said deep contextual understanding and enterprise experience set legacy players like itself apart.