New Tech Order: AI-Fueled BPOs Outpace Legacy IT Firms

As AI becomes a make-or-break force in the tech industry, non-voice BPO providers are seeing stock values surge, while traditional IT vendors are watching valuations crumble.

Big IT companies like TCS, Accenture and Infosys have dropped nearly 30% from 52-week highs. In contrast, BPO firms like Genpact, EXL Services and Firstsource Solutions are approaching their 52-week highs.

The message from the markets is clear: Non-voice BPOs have decoded the AI opportunity, while IT services are still stuck searching for their next big growth engine.

“BPOs have reinvented themselves,” and they have learned to use “AI as a growth vector,” says John Yensen, President at Revotech Networks, a Vancouver-based managed IT services firm.

According to Yensen, BPOs are smartly aligning their service models — data processing, analytics, content moderation — with the kinds of tasks AI can scale rather than replace. By contrast, most IT services firms, he points out, continue to rely on labor-intensive project work and custom software builds, which are increasingly vulnerable to automation.

With AI now taking over tasks such as testing, maintenance, and even code generation, traditional IT vendors have fewer domains in which to maintain growth.

This disruption comes just as clients are pulling back or putting long-cycle transformation projects on hold — directly impacting core revenue streams like ERP implementations and systems integration.

This slowdown is visible in the revised outlooks of major players. Last year, Accenture trimmed its full-year revenue forecast, citing project delays, while Infosys has cut its guidance in its most recent quarterly fiscal report.

BPOs’ Rising Revenue

The latest financial results from some BPOs highlight how effectively they are capitalizing on the AI wave. Firstsource Solutions posted a 20% jump in Q4 FY25 net profit. It added over 500 employees in the first three months of the year and secured more than a dozen major service contracts in the past 12 months. Most notably, it crossed $1 billion in annual revenue for the first time.

WNS Global Services reported $333 million in revenue for the quarter ending Dec. 31, up from $326.2 million a year ago. Net profit rose to $48.6 million, up from $41.5 million. The company’s stock has gained nearly 30% since it outperformed market expectations.

EXL Service continues on a solid growth path. In Q1 2025, it recorded $500 million in revenue, a 14% increase year-over-year. It has now raised its revenue guidance to over $2 billion for the full year.

What’s striking is that these BPOs are no longer just about cost-efficiency. They’re pushing into premium, high-margin services, harnessing AI to solve complex business challenges.

Take WNS. It now offers predictive tools that help airlines optimize pricing, reduce customer churn and anticipate delays. These are high-value, AI-driven insights — a far cry from typical BPO contracts.

EXL Service has transformed itself into a data-first, AI-powered enterprise. The company even teamed up with Nvidia to launch an AI-based insurance underwriting tool. Instead of merely processing claims, EXL now helps insurers make smarter, data-backed risk decisions. That opens the door to higher margins.

Some BPOs are also tapping blockchain as the next wave of digital transformation. Analysts expect an 8% increase in BFSI contracts for BPOs in 2025, thanks to the adoption of blockchain for secure transaction processing and smart contracts.

According to Astute Analytica, blockchain has the potential to reduce fraud by 30%, making it particularly attractive to fintech firms like Stripe and PayPal. These companies are actively partnering with BPOs to bring secure, blockchain-powered processes into their operations.

However, Yensen added that it will be too early to say that BPOs have “won” the war against AI. “They’re simply further along in integrating AI into their core offerings.”

“Established IT firms are adapting by creating separate AI‑first practice units, partnering with leading AI research labs, and shifting toward productized, repeatable solutions instead of bespoke engagements.”

“The winners in this age of AI will be those who can marry scalable automation with deep industry knowledge, regardless of whether they call themselves a BPO or an IT services vendor.”