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Harnessing AI and Automation in Business Process Outsourcing to Drive Growth Amid Shifting Buyer Priorities

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Offering Business Process Improvement Underpinned by AI Technology Enables Vendors to Increase Their Value Propositions and Drive BPO Revenue Growth

Vendors’ business process outsourcing (BPO) businesses continue to benefit from the ongoing shift in buyer priorities from innovation and growth toward business resiliency and optimization. Buyers are investing in automating business processes to free up costs, providing pathways to growth for vendors with AI-powered and platform-based offerings.

 

With generative AI (GenAI) taking center stage in both Accenture’s and clients’ investments, Accenture has an opportunity to further improve the company’s profitability, provided it can position GenAI as a value enabler, rather than another technology that is in search of a problem. However, we expect Accenture, like many of its IT services peers, to continue racing to capture as much business as possible in the managed services space before GenAI picks up and threatens the core value proposition centered on human-backed service delivery.

Graph - 2Q24 BPO Revenue and Growth

Driving Transformation in Healthcare, HR and IT Services with Business Process Outsourcing

Expanding its industry portfolio offerings, such as within healthcare, will enable Cognizant to deliver on finance, HR and back-office functional needs, helping to offset recent declines within its outsourcing services. In June Cengage, an education technology company, renewed its engagement with Cognizant to continue receiving services for seven years. As part of the deal extension, Cognizant will also now support Cengage Unlimited, which provides a subscription platform for users to receive education courses. Cognizant will also provide cloud and security services in support of its finance and HR operations.

 

HCLTech deepens its knowledge base with close partnerships with Google Cloud, AWS and IBM that enable the company to build domain and functional expertise on HR, CRM and finance functions, underpinned by AI. Integrating its partners’ AI platforms and associated talent enabled HCLTech to deliver on clients’ IT and business services needs and generated revenue growth during 2Q24. HCLTech’s partnership with IBM around IBM watsonx brings in AI expertise to address clients’ HR and IT concerns. HCLTech won a deal in 2Q24 with an energy infrastructure company in the U.S. to provide IT and business services to improve the client’s user experience, enabling it to more quickly pursue market opportunities.