Synopsis
Artificial intelligence is transforming the business process management sector. Companies are now prioritizing customer experience, moving away from cost-centric approaches. AI enables personalized customer interactions at scale. Hinduja Global Solutions (HGS) sees significant AI influence in its revenue. Despite recent financial dips, HGS is stabilizing and expanding its AI-led engagements. The company is also focusing on growing its healthcare business.Listen to this article in summarized format
“Customer service departments were historically seen as cost centres because companies said that the function was not core to them,” Korla told ET in an interaction. “But now, customer engagement is becoming core to business survival. So, companies have to invest in it.”
Korla said enterprises are now trying to build highly personalised customer interactions as AI lowers traditional barriers around scale, capital and distribution.
“The experiences that brands deliver to consumers have to be available to a segment of one,” Korla said. “Earlier, companies would segment customers into cohorts. Now, with AI, you can create communication, services and products for each customer at scale.”
At HGS, nearly 25% of its revenue is now “AI-influenced”, according to Korla, as the company focuses on taking foundational AI models and enhancing them with industry-specific and enterprise-specific knowledge and workflows.
The Bengaluru-based company, however, reported weak FY26 results, with the annual net profit coming in at Rs. 32.19 crore, a 73% drop from FY25. Meanwhile, its annual revenue was Rs 4,307.36 crore in FY26, down 2% from last year, amid pressure on traditional BPM spending and smaller deal sizes across the industry.
“HGS has been on a downward trajectory for some time, but we are stabilising now. The next step is building enough trust with customers that they expand AI-led engagements with us,” Korla said.
The company added more than 100 new clients last year, though contract sizes have become smaller as customers increasingly combine AI systems with human workers. “In the past, customers would buy 500 people,” Korla said. “Now they want 100 people plus an AI agent. Margins improve, but the dollar value of contracts initially compresses. The key is increasing throughput and volume.”
The chief executive, nearly a year into the role, said the company is building AI systems tailored for industries such as healthcare, consumer goods and banking by combining enterprise data, workflows and industry knowledge with foundation AI models.
“In contact centres and back-office processing, hallucination rates are still high enough that humans remain necessary. So in some ways, BPOs are more insulated than people initially thought. The biggest opportunity for companies is to take foundational AI systems and enhance them with industry-specific knowledge,” he said.
While HGS is not currently eyeing acquisitions, the company is aiming to expand its healthcare business, which is its sub-scale market. The company is now targeting medical device firms and patient-support services, expanding its focus beyond health insurers to capture experience-driven value creation in the sector.
