Sanjiv Goenka's Firstsource rejigging its BPO operations

Firstsource Solutions Limited, part of the RP-Sanjiv Goenka Group, has announced a new business approach called UnBPOTM, aiming to transform traditional outsourcing models. The company says this strategy will focus on expertise, innovation, and outcome-driven solutions to keep pace with the rapidly evolving technology and business landscape.

According to Firstsource CEO Ritesh Idnani, the outsourcing industry is expected to surpass $400 billion in the next five years, but much of its progress has been incremental. He described UnBPOTM as a necessary reinvention to help businesses adapt to change and create real value. Idnani said the traditional BPO model no longer meets the needs of companies looking for agility and transformation, and that UnBPOTM is about challenging industry norms and positioning Firstsource as a partner for business transformation.

Firstsource’s new approach includes several major shifts, such as the blurring of distinctions between front office, back office, IT, and BPO, leading to integrated services. Cost-saving through labor arbitrage is being replaced by technology-based efficiencies, and a deeper understanding of customer needs and domain expertise is becoming a key differentiator. AI-driven Centers of Excellence will replace reliance on dispersed outsourcing locations. Workplace structures are evolving, with AI agents and gig workers playing larger roles. Hierarchies are being replaced with collaborative, high-value roles to improve agility. Middle management is expected to adopt new skills and move away from outdated structures. AI is being integrated into operations to improve efficiency and accessibility, and companies are shifting from traditional outsourcing contracts to results-driven partnerships.

Phil Fersht, CEO of HFS Research, noted that the outsourcing industry is undergoing a major transformation due to AI advancements. He described Firstsource’s strategy as an important move toward technology-first solutions. Kendra Tucker, CEO of freight industry SaaS provider Truckstop, praised the initiative, saying it aligns with her company’s focus on continuous improvement and adaptability. Dennis Stetzel, Senior Vice President at ETS, said Firstsource’s approach supports ETS’s transition to an AI-driven business model.