‘There is a shift in what customers are thinking about in the long term and better planned structures are going to emerge as winners.’

Photograph: Kind courtesy Geralt/Pixabay

Keshav Murugesh, CEO, WNS, is a veteran in IT services and business process management (BPM).

After being in charge of the company since 2010, he decided to merge the firm, spun off British Airways in 1996, with French IT services company Capgemini.

In a video interaction with Shivani Shinde and Avik Das/Business Standard, Murugesh talks about the future of BPM and the reasons for the deal.

From a turnaround CEO to dealmaker, what made you say “yes” to this deal?

I have not done any acquisition. I turned around companies that were in stress, such as Syntel and WNS. For WNS, we put together the right business model, differentiation, and the go-to market strategy to make it world-beating.

I have seen through business-model transitions — from traditional business process outsourcing models to digital and robotic process automation (RPA).

The next phase, which will be driven by artificial intelligence (AI), generative AI (Gen AI), and agentic AI, is what we are defining as intelligent operations.

Through this deal, we are signalling potentially for the long term to create intelligent operations, which will allow us to go after larger deals and help our clients to focus on end-customers, and not their technology journey or what licences they should buy.

Our combined entity is coming with capabilities such as in IT, cloud, BPS (business process services), cybersecurity, analytics, and AI.

For this, we need significant investment and a strong balance sheet. Our aim is to help clients shift focus from traditional automation to autonomy.

Will such deals between IT services providers and BPM companies become common?

That is subject to time. But a merger between a tech company and BPS is more real. The buyers were different in the past.

Chief information officers were buying IT services while CEOs and chief operations officers focused on operations, AI, and Gen AI.

For example, when RPA came, many customers were forced to buy licences and then got stuck with them in a year because they realised they needed process players who understood the core business to leverage those licences and maximise the outcomes.

Going ahead, customers will want to focus less on those areas but rather want partners who are leaders and will drive them down the path of AI.

Do BPM companies need to align themselves with IT services players to leverage the benefits of AI?

One needs vision for this deal. Smart BPM companies have been investing in technology and analytics.

The game changer in the longer term is the investments required for these technologies such as AI, Gen AI, and agentic AI.

You can manage that for one or two years but can you manage in the long term?

Capgemini and WNS have an alignment where they (Capgemini) are leaders in certain areas but their business process services are smaller than ours.

But they are investing in technology, agentic AI, and analytics practice to address the market where it is headed in five years.

At the same time, deal sizes are getting larger and for that we need stronger balance sheets.

For traditional BPM companies, are those (AI and Gen AI) investments going to be difficult?

I would assume so. Just look at the investment Capgemini is making in areas such as Gen AI and training its people.

There is a shift in what customers are thinking about in the long term and better planned structures are going to emerge as winners.

What is next for you?

For the foreseeable future, I am here. First of all, my priority is running this company until all the approvals are in place and remaining the leader as far as possible.

Also I have to make sure that I am available to integrate and make sure that the people here are taken care of and the investors are satisfied.

Feature Presentation: Aslam Hunani/Rediff