The two major customer service outsourcing majors — Concentrix and Teleperformance — face the same threat: AI is eating legacy outsourcing, and labor arbitrage is no longer a wide moat.
So, why is just one stock, Concentrix, down 20% year-to-date, while Teleperformance is up 23%?
An exploration by Nearshore Americas reveals investors no longer worry about whether a BPO is exposed to AI, since it’s inevitable; they care about more than that.
“Investors no longer ask if you are in outsourcing. They ask how much of your work a machine can do next year,” says Iskandar (Iskan) Rakhmatov, Portfolio Manager at U.S.-based Equity Options.
We map Concentrix’s recent stock performance, how investors view BPO in the age of AI, and what matters most when judging a BPO company. But first, let's understand what its quarterly reports reveal about how investors view BPO in the age of AI.