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Unbundling the BPO: How AI Is Disrupting Outsourced Work

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April 3, 2025

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Business Process Outsourcing (BPO) is a $300 billion industry powering the back- and front-office operations of the world’s largest companies. In her article, "Unbundling the BPO: How AI Will Disrupt Outsourced Work," Kimberly Tan (Partner, a16z) explores how the rise of AI is challenging the status quo. In this episode, Steph Smith (Podcast Host, a16z) sits down with Kimberly to unpack the shift—from call centers and invoice processing to cross-system automation and coding agents. They explore how AI is redefining the economics of scale, unlocking new markets, and expanding the reach of automation beyond the Fortune 500. For founders and operators alike, this conversation offers a clear-eyed look at the playbook for building in this newly addressable space.

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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

Guests & Subjects Covered

Unbundling the BPOBusiness Process Outsourcing BPOSteph Smith Podcast HostVoice AI InnovationAI Opportunities And Challenges

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Unbundling the BPO: How AI Is Disrupting Outsourced Work · A16z · Sentinel