Agentic AI and “co-sourcing” will improve the competitiveness of Japanese enterprises

Agentic AI and “co-sourcing” will improve the competitiveness of Japanese enterprises

Interview with Ganesh Ayyar, President, Intuitive Operations and Automation and Industry Solutions Group, Cognizant

We spoke with Ganesh Ayyar, President of Cognizant’s Intuitive Operations and Automation and Industry Solutions Group, to understand how agentic AI and co-sourcing can unlock a new phase of growth for Japanese enterprises.

AI brings opportunities for Japanese enterprises to leap forward

―― How do you view the Japanese market today? Is it possible to regain its position as an innovation powerhouse?

In my youth, Japan was synonymous with innovation and excellence. Brands like Sony and Toyota were global benchmarks. Over time, however, the global landscape evolved, and new entrants emerged, driven by agility, adaptability, and cost competitiveness.

That said, I believe Japanese enterprises still have a remarkable opportunity in the era of AI. We're seeing the emergence of strong players in sectors such as global pharma, which augurs well for the future of Japanese enterprises. They have shown a tremendous appetite to embrace AI, resulting in enhanced competitiveness.

Of course, challenges such as an aging population and workforce shortages persist. However, Japanese society has a track record of resilience, adaptability, and innovation. This is precisely where AI — especially agentic AI — can serve as a transformative force in unlocking human potential.

Revolutionary change with Agentic AI

―― The term Agentic AI is gaining attention. How is it different from generative AI?

Generative AI has captured the world's imagination, and we are now entering a more advanced phase: Agentic AI. It’s the next frontier that leverages generative AI, creating new possibilities for human and AI agents to mesh together and deliver more advanced business outcomes.

―― What does agentic AI mean for Japan, which is suffering from a declining population?

This is a pivotal moment for Japan. Agentic AI has the potential to significantly augment human capabilities. Imagine top talent in Japan working with an AI agent that increases their productivity multifold while driving exceptional business outcomes.

It's not about replacing people it's about amplifying them. The right AI systems can free up capacity, break silos, enable faster decision-making, and improve agility across the board. It opens the door for Japanese enterprises to leapfrog ahead and secure leadership in a rapidly evolving global market.

Co-sourcing: A better fit for Japan's corporate culture

―― Japan has traditionally favored doing everything in-house. Is this part of why BPO adoption is relatively low?

It’s true that BPO adoption in Japan remains relatively low — around 15–16%, compared to 24–25% in North America and a global average of roughly 20%.

Yet, Japanese enterprises have historically excelled at building partner ecosystems, particularly in world-class supply chain innovation. With the advent of AI, the BPO landscape presents similar opportunities.

The concept of “co-sourcing” offers an aligned approach to modernize operations while maintaining control and trust.

―― How is co-sourcing different from traditional outsourcing?

Traditional outsourcing focuses on handing off specific tasks. Co-sourcing, in contrast, is about shared transformation. In our co-sourcing model, we don’t just innovate within the scope we handle — we help bring innovation across the client’s entire process landscape, including what they retain in-house. It’s a collaborative framework where both sides benefit from the same digital advancements.

It’s also backed by flexible commercial models such as transaction-based pricing and risk-reward structures, where our success is tied to the client’s success.

―― What about data security, which is often a concern in Japan?

It’s a valid concern — and not just in Japan. We address this by operating within the client’s secure environment, so data doesn’t have to leave their system. This ensures security without compromising innovation.

AI is reshaping the future of BPO

―― How do you see BPO evolving in the AI era?

Fundamental changes are taking place. Conventional BPO was "human-led and human-powered," but the new era of BPO is "human-led and AI-powered."

Traditionally, business systems were classified into three categories: systems of record, systems of engagement, and systems of intelligence. Now, AI is enabling a new layer — systems of action.

Agentic AI plays a key role in this evolution. It connects insights to outcomes by navigating both deterministic workflows, which follow clear rules, and dynamic workflows that adapt in real time.

Since its inception in 2009, our BPO business has been providing industry-specific professional services and is also known as a leader in serving digital-native companies. As Cognizant ramps up its enterprise-wide $1 billion investment in AI, we are harnessing that momentum to shape the future of AI-powered BPO.

Looking ahead: A long-term commitment to Japan

―― What makes you optimistic about the Japanese BPO market for Cognizant?

Cognizant’s culture is anchored in deep industry knowledge, innovation, and customer centricity — values that strongly resonate with the Japanese enterprises.

―― Cognizant has been supporting Japanese companies for more than 15 years. How does it intend to approach the Japan market in the future?

We’re seeing a gradual shift in mindset. While Japanese companies have traditionally embraced a long-term view — and rightly so — there’s a growing urgency for speed, agility, and competitiveness. Many leaders are now seeking newer models with the right balance of cultural nuance and speed.

―― Lastly, do you have a message for Japanese companies?

The arrival of AI presents a real window of opportunity, especially for companies willing to experiment, co-create, and adapt.

With a model like co-sourcing and the right AI capabilities, there’s a path forward that’s both ambitious and practical.

We’ve stood with Japan for over 15 years, and we’re committed to doing so for the long haul. As agentic AI matures and becomes a part of everyday work, we look forward to supporting Japanese enterprises as they shape the next chapter of global leadership.