From BPO to Tech: Complete Guide to ITES Workforce Transition in 2026

India's business process management industry remains a major employer and export engine. NASSCOM estimates the BPM segment at around $59 billion in FY26, within a total tech industry of about $315 billion.^[1] But the nature of the work is changing faster than at any time since the industry began. The simplest customer queries, data-entry tasks and document checks are moving to AI. What remains for people is more complex, more judgement-heavy and more technical.

For operations leaders, the question is no longer whether this will happen. It is whether your workforce will be ready when it does, and whether you will redeploy experienced people or lose them.

What is changing in ITES

Gartner predicts that by 2029, agentic AI will autonomously resolve 80% of common customer service issues without human intervention, leading to a 30% reduction in operational costs.^[2] Globally, the World Economic Forum expects 170 million new roles and 92 million displaced roles by 2030, and 41% of employers plan workforce reductions where AI can automate tasks.^[3]

The same shift is creating demand elsewhere. Research by ServiceNow and Pearson projects 2.73 million new tech jobs in India by 2028, including tens of thousands of openings each for software testers, data analysts, data engineers and developers.^[4] Many of those roles value exactly what experienced BPO and KPO employees already have: process discipline, customer understanding and problem solving.

Three consequences matter most for ITES leaders:

• Remaining interactions get harder. When AI handles routine queries, human agents receive escalations, complaints and complex cases. Hiring and training benchmarks built for simple calls no longer fit.
• New roles appear inside the operation. AI supervision, conversation design, quality analytics, knowledge-base management and automation support all need people.
• Clients expect a plan. Buyers of BPO services increasingly ask how their provider will use AI while protecting SLAs and CSAT.

The automate, augment, elevate framework

Start by classifying every role, not every person. This gives you a clear view of where change will land.

A 6-step ITES workforce transition plan

Step 1: Map process-level automation potential

For each process, estimate the share of volume that AI can resolve, the share it can assist with, and the share that will stay human. Use real ticket and call data, not vendor estimates.

Step 2: Classify roles and set target headcount per category

Apply the automate, augment, elevate framework to every role. The output is a forward view: how many people you will need in each type of role over the next 12 to 24 months.

Step 3: Assess every employee objectively

Tenure and last quarter's KPIs do not tell you who can move into analytics or IT support. A structured assessment of communication, aptitude, process comprehension, digital skills and learning ability does. It also reveals hidden talent: agents whose aptitude fits technical roles they would never have been considered for.

Step 4: Build milestone-based reskilling paths

For each target role, define the skills required and a sequence of learning milestones, each verified by assessment. Employees follow individual plans based on their own gaps. Moves into augmented customer roles can be quick; moves into technical roles take longer and need clear checkpoints.

Step 5: Raise hiring benchmarks for the new work

As routine work disappears, new hires must be ready for complex interactions from day one. Update your ITES hiring assessments to test judgement, empathy under pressure, written clarity and comfort with AI-assisted tools.

Step 6: Protect SLAs during the change

Run automation and redeployment in phases, one process at a time. Keep human review in place until AI accuracy is proven, brief clients early and track CSAT, handling time and quality scores weekly.

Tech roles BPO and KPO talent can move into

Not every agent will move into a technical role, and not every agent should. But many have strengths that transfer well. These are common, realistic pathways:

For individuals planning this move on their own, our Non-IT to IT Career Transition program starts with a role-fit assessment and a personal transition plan.

What agents and team leaders can do now

If you work in a BPO, KPO or contact centre, the best time to prepare is before your process changes. Practical steps:

• Learn the AI tools already on your floor. Agents who can work confidently with AI-assisted replies, summaries and knowledge search become the obvious choice for augmented roles.
• Get comfortable with data. Basic Excel, reading dashboards and understanding KPIs such as AHT, FCR and CSAT open doors to quality and analytics roles.
• Document what you know. Process knowledge is valuable. Volunteering for SOP writing, knowledge-base updates or new-hire coaching builds skills that transfer to business analysis and AI operations.
• Take an honest skills assessment. Knowing your aptitude for technical work helps you choose between growing inside customer operations and moving into a tech role.

Team leaders have an additional responsibility: learning to manage blended teams in which AI handles volume and people handle judgement. That means new metrics, new coaching conversations and close attention to morale while roles change.

Quick self-check: is your operation ready for the transition?

How ReadyForRole helps

ReadyForRole ITES Workforce Readiness & Transition assesses candidates and existing employees for voice, non-voice and back-office roles against your operational benchmarks. Combined with individual upskilling plans and, where you are automating processes, custom AI agents and workflow automation, it gives operations leaders one assessment-led path through the transition: protect SLAs today and build the workforce you will need tomorrow.

Frequently asked questions