

Unbundling the BPO: How AI Is Disrupting Outsourced Work
776 snips May 17, 2025
Kimberly Tan, a Partner at a16z, delves into the transformative impact of AI on the $300 billion Business Process Outsourcing industry. She discusses how AI is reshaping traditional roles in customer service and finance, enabling automation and new market opportunities. The conversation highlights the critical evolution from conventional practices to advanced automation, emphasizing the potential for startups to thrive in this shifting landscape. Tan also reveals how non-technical innovators can leverage coding tools to redefine the future of BPO.
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AI Disrupting BPO Industry
- AI is rewriting the BPO industry by automating entire workflows instead of relying on human labor.
- This disruption spans front office customer support and back office functions like finance and HR.
What Is BPO
- BPO involves outsourcing labor-intensive tasks that large enterprises find unsustainable to manage in-house.
- It covers customer support, IT, HR, finance, and knowledge management functions.
BPO Industry Size and Origin
- The $300 billion BPO industry is projected to grow beyond $500 billion by 2030.
- It originated from manufacturing operations and now serves many top industries globally.