This week on the AP Arms, Ed Maughan, Director - BPS UK and EU at Hexaware, sits down with Xelix Head of Partnerships Fred Leeming to talk about how Artificial Intelligence is transforming the Business Process Outsourcing (BPO) industry.
They explore evolving client expectations, including new measures of success, process automation and the changing role of offshoring in an AI-driven world.
Watch the episode ▶️
A bit about Ed:
Ed has extensive experience in IT, client-facing technology and BPO, having worked with leading companies like WNS, Wipro and BT. Now as a Director at Hexaware, he leverages his background to develop innovative, outcome-focused solutions that blend technology and BPO expertise.
When he’s not leading business transformation projects, he enjoys a good barbecue, or braai, as he and his South African family would call it.
How have back offices evolved over the years?
Ed notes that initially, traditional outsourcing was "mainly based on labour arbitrage, strict adherence to SLAs and manual effort." He explains, “Over time, outsourcing has moved toward outcome-based models,” where success is measured by accuracy, speed and compliance rather than just headcount reduction.
Today’s focus is on making operations more dynamic and adaptable to complex business needs.
Shifting to meet client expectations of AI - how is success different?
Ed says, “Clients now expect AI solutions to be production-ready, scalable and proven to deliver ROI.”
The expectation has shifted from just experimenting with proof of concept to deploying systems that generate tangible results, including fewer errors and faster decision-making. This shift is disrupting traditional outsourcing models and raising the bar for what’s considered successful.
Early automation efforts mainly targeted Accounts Payable — invoice validation, PO matching, and cash application— and general ledger entries. Ed points out: “RPA and OCR technologies sparked hype a decade ago, but ROI was inconsistent.” Now, AI offers “adaptive, context-aware workflows” that improve leakage reduction, internal controls and operational efficiency.
As a result, metrics have expanded from simple cost savings to include error rates, compliance and overall process agility.
Will AI reduce offshoring?
According to Ed, “AI won’t eliminate offshoring but will shift its focus.” He explains that “transactional, low-value tasks will continue offshore,” but higher-value activities requiring real-time data and judgment, such as exception handling, are likely to move closer to the client. Overall, he predicts offshoring will “persist, but with a different emphasis on the types of tasks and their locations.”
Final thoughts: Any advice for CFOs considering outsourcing?
Ed advises CFOs to prioritise talent and problem-solving skills. “Upskilling teams in automation and analytics is essential,” he recommends.
He also emphasises the importance of shifting mindsets from purely transactional roles to outcome-based ownership and advocates for revisiting contract models that incorporate AI and data ownership. Ultimately, success depends on “a balanced approach where people, process and technology work together to create agile, future-ready operations.”
A huge thank you to Ed for sharing his insights on the future of AI and outsourcing.
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