Firstsource Disrupts BPO with AppliedAI Investment, Launches 'UnBPO' for AI Automation
UnBPO takes flight: Firstsource leverages AppliedAI's agentic AI and human-in-the-loop to revolutionize regulated enterprise workflows.
November 12, 2025

In a significant move to reshape the landscape of business process management, Firstsource Solutions Limited has made a strategic investment in AppliedAI, an AI workflow automation platform.[1][2][3] This partnership is a cornerstone of Firstsource's "UnBPO" strategy, signaling a deliberate shift away from traditional outsourcing models toward technology-centric, outcome-driven operations.[1][2][3] By embedding AppliedAI's advanced capabilities into its core services, Firstsource aims to revolutionize how complex, regulated processes are automated for enterprises, particularly in compliance-heavy sectors.[1][4][5] The collaboration is set to redefine enterprise automation by merging artificial intelligence with human oversight to deliver more efficient, accurate, and transparent results.[1][6] This investment positions Firstsource to address the increasing demand for intelligent automation in a market where legacy systems and manual processes often create bottlenecks and errors.[1][7]
The strategic investment is the central pillar of Firstsource's "UnBPO" vision, a forward-looking initiative designed to transcend the limitations of conventional business process outsourcing (BPO).[1][2][8] Historically, the BPO industry's value proposition was built on labor arbitrage—leveraging lower-cost workforces to perform repetitive, rule-based tasks.[8] The UnBPO strategy fundamentally pivots from this model to one of "technology arbitrage," using AI and automation to re-engineer workflows for greater speed, security, and intelligence.[2][6] According to Dr. Sanjiv Goenka, Chairman of RPSG Group and Firstsource, the investment is a "decisive step towards reimagining enterprise operations from the ground up."[1][4] He emphasized that the goal is not merely to integrate automation but to fundamentally transform how work gets done.[1][6] This approach moves beyond fragmented automation solutions, like Robotic Process Automation (RPA), which often digitize parts of a process but leave the overall system disjointed.[1][9] Instead, the partnership seeks to create end-to-end intelligent automation for the most complex sectors.[1]
At the heart of this transformation is AppliedAI's sophisticated technology stack, notably its Opus platform and proprietary Large Work Model (LWM).[1][4] Unlike general-purpose AI models, AppliedAI's LWM is specifically designed to learn, analyze, and re-engineer enterprise workflows to identify friction points and drive efficiency.[1][9][8] The platform utilizes what it calls "agentic automation," where AI agents can manage complex, end-to-end processes autonomously, moving beyond simple task automation.[5][10] A critical component of this is the "human-in-the-loop" (HITL) capability.[1][3] This ensures that while routine, low-risk tasks are handled automatically, any exceptions or decisions requiring nuanced judgment are seamlessly escalated to human experts.[1][6] This hybrid approach is crucial for regulated industries like healthcare, financial services, and insurance, where accuracy and compliance are paramount.[3][4] By maintaining full transparency and auditability, the system builds trust and ensures that AI and human judgment work in harmony.[1][11] This integrated system is designed to deliver faster, more accurate, and more resilient operations.[1]
The implications of this partnership extend beyond technological integration, signaling a broader shift in the business model of the BPO industry. By combining Firstsource's deep domain expertise in operations with AppliedAI's supervised automation, the collaboration is championing an outcome-based pricing model.[1][8] This moves away from traditional billing based on headcount or hours worked and aligns incentives with client success, compensating the service provider for achieving measurable results like reduced processing times or improved accuracy.[8] Arya Bolurfrushan, Founder and CEO of AppliedAI, noted that the partnership turbocharges the UnBPO vision and is "redefining how knowledge work gets done."[1][7] For clients, this translates into access to scalable AI solutions that unlock tangible business outcomes and a clearer return on investment.[1] This move is indicative of a larger industry trend where enterprises are demanding more agility and measurable value from their outsourcing partners, a demand that legacy BPO models struggle to meet.[8]
In conclusion, Firstsource's investment in AppliedAI represents a calculated and strategic repositioning in an industry on the cusp of radical change. It is a clear acknowledgment that the future of business process management lies not in incremental improvements but in a fundamental re-architecting of work itself. By leveraging advanced AI, agentic automation, and a human-in-the-loop framework, Firstsource is preparing to tackle the most complex operational challenges in regulated markets, offering a model of automation that is both intelligent and accountable.[1][4] This partnership is not merely a financial transaction but a blueprint for the evolution of the BPO sector, setting a new standard for how enterprises can achieve efficiency, compliance, and scalable growth by harmonizing human expertise with artificial intelligence.[1][2][6] As AI becomes less of a competitive advantage and more of a necessity, this collaboration could define the next generation of enterprise operations.[8]