Key facts
- AI is transforming customer service from a cost center to a core business function focused on customer experience.
- AI enables personalized customer interactions at scale, moving beyond traditional customer segmentation.
- Approximately 25% of HGS's revenue is now AI-influenced.
- HGS is enhancing foundational AI models with industry-specific knowledge and workflows.
- HGS reported a 73% drop in net profit and a 2% decrease in revenue for FY26.
- Contract sizes are shrinking as clients combine AI systems with human workers.
Venkatesh Korla, CEO of Hinduja Global Solutions (HGS), believes that artificial intelligence is fundamentally changing the business process management (BPM) sector, shifting customer service from a cost center to a crucial driver of business value.
Korla explained that historically, customer service departments were viewed as non-core cost centers. However, with AI lowering barriers to scale and personalization, customer engagement is now essential for business survival, necessitating investment. He highlighted that AI allows brands to deliver highly personalized interactions for individual customers, a significant shift from previous cohort-based segmentation.
At HGS, approximately 25% of revenue is now influenced by AI, as the company integrates foundational AI models with industry-specific knowledge and workflows. Despite this focus, HGS reported weak FY26 financial results, with net profit dropping 73% to Rs. 32.19 crore and revenue declining 2% to Rs. 4,307.36 crore, attributed to pressure on traditional BPM spending and smaller deal sizes.
Korla indicated that the company is stabilizing and aims to build customer trust to expand AI-led engagements. While HGS added over 100 new clients, contract sizes have decreased as customers increasingly combine AI with human agents. The company is developing AI systems tailored for sectors like healthcare, consumer goods, and banking, recognizing that human oversight remains critical in contact centers due to AI hallucination rates. HGS is also looking to expand its healthcare business, targeting medical device firms and patient-support services beyond its current focus on health insurers.