GenAI could boost India’s outsourcing business margins
Tech services major ServiceNow has realised $10 million in annualised tangible gains due to cost savings and increased productivity across the organisation as a result of Gen AI usage, a top executive said.
The company’s artificial intelligence-enhanced product Now Assist — which offers virtual agent customer support, customer service management, HR service delivery, ITOps management, field service management, strategic portfolio management, AI search, etc — has become the company’s fastest growing product with 11 deals exceeding $1 million in annual contract value in Q2 (April-June), Pat Casey, CTO and EVP of DevOps, ServiceNow told ET.
Casey also cited Wipro and LTI Mindtree as case studies that explain the impact AI has had. “Through the integration of Virtual Agent with Microsoft Teams, Wipro employees can now quickly find answers to requests. Common tasks such as password resets or new laptop orders can be resolved in less time than they did with a human agent. This increase in efficiency has resulted in a 40% reduction in service requests and a 25% cut in support call volumes,” he said.
The virtual agent now handles 16,000 requests a month, growing by 40% each month. At Mindtree, meanwhile, IT operations costs have come down by 50%, he said.
Benefits for India
India, a leader in the IT services outsourcing market, stands to benefit the most with Gen AI applications, since it offers an opportunity to expand margins. “(The outsourcing business) is a huge part of the Indian economy. And that business runs on
