BPO’s Next Chapter: Adapt to AI or Face Obsolescence

In late 2023, SkyTech Solutions—one of Bangladesh’s top outsourcing firms—faced a sudden jolt: a major client shifted the core tasks of a revenue-generating project to artificial intelligence.

“AI wiped out over 80 percent of the jobs on that project in one blow,” said Musnad E Ahmed, founder of SkyTech. “They informed us that automation would now handle the main task, leaving only quality control to humans.” The assignment—processing freight invoices for Uber Freight and uploading them to a CRM system—had employed over 50 people, each earning $8.50 an hour for repetitive yet profitable work.

SkyTech’s experience is a reflection of growing disruption in Bangladesh’s business process outsourcing (BPO) sector, as AI begins to replace entry-level jobs in customer support, transcription, data entry, and similar routine roles.

The AI Disruption

Though not yet on par with global giants like India and the Philippines, Bangladesh’s BPO sector has seen impressive growth, now valued at $850 million with around 400 firms employing over 80,000 workers—40% of them women—according to the Bangladesh Association of Contact Center and Outsourcing (BACCO).

Once considered a promising avenue for youth employment and foreign earnings, the sector is being reshaped by automation. Companies are streamlining operations to remain globally competitive, often at the cost of workforce reduction.

Yasin Arafat, a former customer support agent in Dhaka, lost his job when a client introduced an AI chatbot. “Once AI replaced the task, I was unemployed for months,” he said. He later returned under a different project.

At ASL BPO, another major firm, AI integration reduced staff size by 20–30% on a recent e-commerce project, particularly in quality assurance roles.
“Customer support and graphic design teams are shrinking due to automation,” said CEO Zayed Uddin Ahmed. “AI boosts efficiency. Our marketing team now uses ChatGPT for research, saving time.”

The firm’s headcount dropped from 250 to 150 within a year. “Automation is essential now. It's not a choice, it's survival,” Zayed added.

At post-production studio The KOW Company, AI has not only optimized workflows but reshaped hiring practices. “Earlier we’d hire 25 people at once; now it’s just 10,” said CEO Kowser Ahmed.
In one year, the workforce dropped from 650 to 550, yet daily output rose from 25,000 to 40,000 images. “With agentic AI on the horizon, human roles in repetitive tasks will shrink further,” he said.

Finding New Opportunities

Despite the job losses, many see AI as a path to reinvention. Some firms are using it to develop new services and business models.

“At Bright River Bangladesh, we’ve used AI in image editing for 7–8 years,” said CEO Md Riajul Islam. “Today, 30% of edits are AI-assisted, allowing faster delivery and more scalability.” The firm now processes more with fewer staff and has even built an in-house AI team.

At Mevrik, which focuses on digital customer experience in finance and taxation, AI serves as the first line of client interaction.
“We handle nearly 100,000 queries daily for one client—something that would’ve required hundreds of human agents,” said operations head Reyad Hossain.

Newer firms like Digipro Solutions Ltd, launched in 2022, are also leveraging AI for tasks such as automated financial reconciliation.
“Our tools can flag mismatches far faster than any manual team,” said manager Maruf Mosharraf.

Adapting for the Future

As AI takes over repetitive work, human roles are shifting toward complex problem-solving and oversight.

“At SkyTech, our call centre now uses an AI agent to handle the initial customer interaction,” Musnad said. “Only when a lead is detected is the call forwarded to a human agent.”

While routine banking tasks—like reporting lost cards—are now automated, more involved services still require human input. Even in invoice processing, people remain responsible for quality checks and final reporting.

The company is now investing in upskilling. “We’ve set aside a budget for training,” Musnad said, adding that government support is crucial. “Without subsidised training, we risk falling behind.”

Rakibul Hassan, a leading AI expert in Bangladesh, echoed the call for upskilling. “The future workforce must master AI supervision, data analysis, and high-level communication,” he said.
Firms are already beginning to offer advanced services like predictive analytics and fraud detection. “These could redefine outsourcing and attract new global clients,” he noted.

The industry was built on manpower, but its future depends on adaptability. “Survival hinges on how fast companies can reskill and redefine their services in this AI-driven era,” Rakibul added.

Global Trends, Local Lessons

This shift is not limited to Bangladesh. India and the Philippines, the world’s largest BPO hubs, are also transforming under AI’s influence—with stronger infrastructure and government support.

Indian firms are pivoting to high-value services like robotic process automation and AI-driven analytics. Giants like TCS and Infosys are investing in AI labs, while mid-tier firms are upskilling through academic partnerships, according to The Washington Post.

In the Philippines, a World Financial Review report notes that 86% of knowledge workers now use AI tools—from emotional recognition to generative systems—though this also raises concerns about work stress and constant monitoring.

A National Policy in Progress

With job displacement growing, the Bangladesh government is drafting a National AI Policy.

“Layoffs in BPO are a concern,” said Faiz Ahmad Taiyeb, special assistant to the chief adviser for ICT. “We are consolidating training programmes to offer structured AI upskilling. A new project is being prepared for implementation.”

Skill development will target areas like software development and image editing using AI, enabling workers to adapt alongside legacy systems.

“We are taking a measured approach,” Faiz added. “By listening to all stakeholders, we aim to build a comprehensive, inclusive response to the AI challenge.”