Key facts
- AI is transforming customer service from a cost center to a core business function focused on customer experience.
Venkatesh Korla, CEO of Hinduja Global Solutions (HGS), stated that AI is shifting customer service from a cost center to a core business function. He noted that AI enables personalized customer interactions at scale, with HGS now deriving 25% of its revenue from AI-influenced services.
The shift in customer service strategy, driven by AI, signifies a move towards greater customer-centricity and operational efficiency for businesses. For HGS, this transition is crucial for stabilizing its financial performance and capturing future growth opportunities in AI-enhanced services, particularly in specialized sectors like healthcare.
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.
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