All businesses across the globe are under pressure to reduce expenses and enhance customer service. The integration of artificial intelligence (AI) is one solution that leads to efficiency gains in industries. This transformation is spearheaded by business process outsourcing (BPO) companies especially in India. Shahin Shateri, who has extensive experience working as an operations executive and entrepreneur, focuses on how AI will transform outsourcing models. His ideas outline practical actions to take to use AI to remain competitive.

The use of AI in BPO companies revolves around automation and result-driven contracts. The client needs are not compatible with the traditional pricing models that are at times rigid and volume based. Statistics show that half of all finance outsourcing contracts will be terminated by 2025 as a result of pricing systems that have become obsolete. According to Shahin Shateri, fixed-price contracts kill innovation. Outcome-based models bring together incentives, which compensate efficiency and results. The fact that he has been climbing operations of international firms illustrates the shift to adopting flexible result-based agreements.

Recent industry reports show that the exports of Indian BPOs have overtaken IT services with a growth rate of 8 per annum against the growth of IT which stands at 6 per annum. This growth is driven by cost-cutting imperatives on the part of global clients. Repetitive work is automated by artificial intelligence applications like chatbots, predictive analytics, and robotic process automation (RPA). As an example, AI is used in customer service centers to filter 70 percent of easy queries, leaving employees with complicated ones. According to Shahin Shateri, AI does not substitute humans. It increases their capacity to concentrate on high-value work.

The BPO companies that embrace AI generate quantifiable benefits. According to a 2024 study, companies that apply AI-based automation save 20-30 percent in their operations. Scores of customer satisfaction also increase and the time taken to respond is reduced by up to 40%. The strategy of Shahin Shateri to incorporate AI focuses on the small scale. Scale only after trying AI on one process, such as invoice processing. Measure results, then expand, he says. His realistic approach allows companies to evade expensive mistakes.

Outcome-based contracts represent a larger trend. Clients do not want hours logged, they want results. BPO companies are now linking charges to such measurements as retention of customers or accuracy of transactions. That is consistent with the opinion of Shahin Shateri: Pay results, not work. It compels the providers to be innovative. His experience in multinational companies shows that AI can be used to monitor these metrics more accurately and hold people to account.

Challenges remain. The resistance to change and old systems slows the adoption of AI. The staff also needs to be trained to work with AI. Shahin Shateri emphasizes that you need to upgrade your staff. AI is a tool, not a threat.” His experience indicates that those firms investing in training realize productivity growth of 15% in less than a year.

The trend of cost-cutting globally keeps fueling the Indian BPO services demand. The skilled labor force and low cost of the country can make it a center of AI-based outsourcing. Recent articles about X describe the benefit of India, and one of the users states, Indian BPOs are winning the race by combining AI and human knowledge. Shahin Shateri concurs, citing the fact that India has the capacity to provide scalable cost-effective solutions.

The following steps must be followed to integrate AI:

• Automate repetitive tasks such as data entry or customer enquiries.
• Use pilot AI tools to gauge cost and time savings in one department.
• Move to outcome based contracts to match client objectives.
• Educate the staff on how to apply AI with emphasis on the high-value activities.
• Monitor such measures as response time and error rates.

AI is no longer an option. Those businesses that adopt it will have a competitive advantage. The experience of years of operation provides a roadmap as provided by Shahin Shateri. He says: Start small, measure results, and scale fast. The AI-based efficiency will transform global outsourcing as BPO companies take the lead.