Deep Dive: This Overlooked BPO Stock Is Quietly Becoming an AI Winner
A tech-savvy customer experience outsourcer is expanding margins, landing “trophy” clients, and buying back shares—while trading at just 5x EBITDA.
Back in my corporate finance days, we were always hunting for ways to save a penny—or two, if we got lucky. Especially at the 3G Capital-controlled companies I worked for, where cost-cutting was basically a core value. One of the classics? Offshoring repetitive, low-value work. I was all for it. I hated mind-numbing tasks, and offshoring was supposed to save money and free up my time. Win-win, right?
Not exactly. What we got back was ... rough. I spent more time double-checking than I would’ve spent doing the work myself. And since the idea was that offshoring would lighten my load, I ended up getting more responsibilities. So now I was redoing offshore work and juggling a bigger plate.
That was about 15 years ago. Offshoring has come a long way since then, mirroring broader shifts in the BPO (Business Process Outsourcing) industry where global talent quality has improved, integration tools have matured, and digital-first delivery models have become the norm. The talent pool is stronger, the teams are better educated, and integration with onshore operations has improved. But new issues emerged. The quality gap narrowed—but costs crept up. In one of my more recent roles, the supposed “savings” from offshoring were basically meaningless.
That’s when I really started digging into the BPO model. I realized that while some companies get it wrong—throwing bodies at a problem and calling it strategy—others get it very, very right. This deep dive isn’t a how-to manual for optimizing your offshore team (though I’m happy to chat if you're into that). Instead, it’s about a small BPO company that’s nailing the execution, and whose stock looks like a compelling investment.
Why this BPO investing opportunity stands out
When a “boring” call center outsourcer starts printing record revenue, expanding margins, and buys back nearly a fifth of its shares overnight, it’s time to pay attention. This company is a mid-cap CX (customer experience) provider flying under the radar, even as it transforms its business in plain sight. It’s operating in a segment of BPO that’s benefiting from two undeniable trends: offshore labour efficiency and AI-driven customer service.
Despite a solid track record and improving fundamentals, the stock trades at just 5.3x EBITDA and 12.2x earnings—a discount to both peers and reality. With a target price that implies 160% upside, this company’s high-margin, tech-enabled model and recent strategic moves make it one of the more interesting compounders hiding in plain sight.
In this deep dive, we’ll unpack one of the most interesting compounders hiding in plain sight.
Let’s dive in 🤿!
