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From Fire-Fighting to Innovation: How Services-as-Software Powers Outcome-Based Innovation 

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Services-as-Software

By Kalyan Kumar, Chief Product Officer, HCLSoftware

a portrait of Kalyan Kumar, Chief Product Officer, HCLSoftware
Kalyan Kumar, Chief Product Officer, HCLSoftware

Amid the rise of agentic AI, the enterprise technology landscape is quietly transforming as the boundaries between software and services rapidly blur. Organizations are adopting autonomous AI agents to streamline workflows, automate tasks at scale, and accelerate business outcomes.

Gartner predicts that by 2028, 33% of enterprise software applications will embed agentic AI – up from less than 1% in 2024 – enabling 15% of day-to-day work decisions to be made autonomously.

This paradigm shift is prompting businesses to rethink success through enhanced experiences, operational efficiency, and simplified complexity, driving continuous improvement, sustained growth, and measurable value.

It’s Time for a Fundamental Reset

Enterprises face a pivotal moment: traditional service models no longer suffice. A majority of leaders are actively reassessing their vendor relationships, with 72% targeting IT services contracts and 62% focusing on software and SaaS agreements for renegotiation.

This signals a strategic shift away from incremental fixes toward embracing Services-as-Software — a customer-centric paradigm that goes beyond conventional pricing and paves the way for value co-creation and outcome-based engagements, enabling companies to balance the risk and reward to maximize returns on digital investments

In a market often constrained by vendor lock-in and SaaS bloat, the Services-as-Software model emphasizes key quality metrics such as transparent total cost of ownership (TCO), clear ROI, and risk mitigation to help CXOs better evaluate their software investments.

This framework drives tangible business outcomes, empowering organizations to balance growth with cost efficiency through enhanced TCO visibility. For instance, autonomous agents in IT Service Management can be evaluated using outcome-focused metrics such as customer satisfaction (CSAT), resolution times, and speed-to-market — providing compelling insights into value delivery and operational performance.

Similarly, in the high-stakes security operations, where SecOps teams face alert overload, agentic AI offers a major advantage. It autonomously analyzes, categorizes, and prioritizes security incidents, providing triage notes in real-time to empower informed responses. By emphasizing agent accuracy against human benchmarks, reducing time-to-resolution, and ensuring compliance, this approach delivers measurable outcomes that drive tangible business value.

Agentic AI’s Impact on IT Spend

In the face of these strategic market shifts, IT budgets are being fundamentally restructured. As organizations accelerate agentic AI adoption, CXOs must carefully balance budget constraints with the imperative to achieve measurable business outcomes. This challenge is further amplified in today’s complex enterprise landscape, characterized by multi-cloud, multi-vendor environments where vendor lock-in and data dependencies persist.

Enterprises cannot simply rip and replace to give way for new systems – making the need for  interoperable, outcome-focused solutions more critical than ever.  Moreover, traditional business processes remain largely deterministic and rules-based, while functions are probabilistic.

The Intelligence Economy requires interconnected systems — spanning data, processes, and intelligent agents—that can orchestrate workflows seamlessly across agents, robots, and humans, and adapt dynamically in real time, all underpinned by strong human governance.

From IT Spend to Business Value: The Services-as-Software Revolution

So, how can enterprises optimize IT budgets and fully capitalize on agentic AI? The answer lies in building the right foundation —  a key imperative for achieving real business impact. 

Looking ahead to an agentic-powered future, HCLSoftware outlines an intelligence fabric of Services-as-Software via Agents of Action  – a customer-centric, value-driven, pragmatic, outcome-based approach. Instead of completely reimaging operations, it provides a  practical pathway to outcome-based transformations at scale. 

Anchored by the XDO Blueprint — which integrates Xperience, Data, and Operations — it provides a realistic roadmap for transformation with Agents of Action underpinned by human-in-the-loop governance to deliver business outcomes continuously, intelligently and invisibly. 

Building the XDO Enterprise: Real-World Agentic AI Use Cases

Let’s explore how real-world implementations of agentic AI can revolutionise enterprise operations across the three critical domains.

  1. Reimagining experience (X):  Marketers and CX leaders often struggle with fragmented workflows that reduce productivity and campaign effectiveness. Multi-agent AI platforms unify predictive and generative AI to streamline fragmented marketing workflows. This enables automated data analysis, insights generation, and customer segmentation via natural language, boosting campaign effectiveness and productivity.
  • Fueling data insights (D): Picture a scenario where a user needs to understand how monthly active users (MAUs) and churn correlate over a period of two years. AI agents democratize data by automating complex analyses like correlating MAUs and churn over years. By quickly identifying patterns and recommending retention strategies, AI agents can replace weeks of manual data science work with self-service analytics, delivered in minutes.
  • Reinventing service management (O):  IT service management teams contend with overwhelming alert volumes, and lengthy resolution times.  In this scenario, autonomous incident resolution uses three AI agents: Diagnosis (detects anomalies), Resolver (executes fixes), and Incident Manager (orchestrates workflow/escalates). This reduces mean time to resolution by handling most incidents without human intervention and continuously improving response rate.
  • Transforming SecOps (O): HCL AppScan RapidFix exemplifies how agentic AI transforms security operations from reactive to proactive intelligence.  Through two autonomous agents —SAST Autotriage for vulnerability assessment and SAST Autofix for generating code fixes for issues detected, the agentic-powered system accelerates triage by reducing manual efforts, cuts remediation time and addresses security backlogs, giving immediate and tangible ROI to companies. 

The Gulf Advantage: Accelerating Value Through XDO Blueprint

The XDO Blueprint drives a powerful flywheel effect – enhanced experiences yield richer data, which optimizes operations. This is not a linear progression but a compounding cycle that accelerates organizational capabilities over time.

This continuous improvement model is especially critical in regions with ambitious transformation agendas. In the Middle East, where visionary initiatives like ‘We the UAE 2031’ call for sustainable, long-term transformation, the XDO Blueprint offers a strategic framework perfectly aligned to meet these demands.   

Building Pragmatic Sovereign Solutions 

The cornerstone of successful AI-driven transformation is responsible implementation. While a raft of solutions promise to deliver the silver bullet that brings us closer to AI utopia, true business impact is achieved by establishing a solid foundation grounded in explainability, governance, and data sovereignty.

In the Gulf region, where data privacy and ethical AI usage are paramount, the XDO Blueprint integrates compliance at the core of its architecture —making it a strategic enabler, not an afterthought. This ensures that innovation moves forward without compromising on trust. 

Tech Features

WHY AI AGENTS PROVE THEIR WORTH UNDER PRESSURE

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Alexander Merkushev, Head of AI projects, Yango Tech

Business pressure rarely arrives in a neat or predictable form. It builds through overlapping demands, such as customers expect faster responses, regulators expect tighter control, leadership teams need clearer visibility, and frontline staff are asked to deliver all of this through systems that often do not move at the same speed. In stable conditions, organisations can usually work around those gaps. Teams compensate manually, service holds together, and inefficiencies stay partly hidden. In high-pressure environments, that buffer disappears. Slow workflows, fragmented systems, and manual bottlenecks become visible very quickly because the organisation no longer has the time or flexibility to absorb them. That is where the case for AI agents becomes much more practical. AI agents are most valuable when they allow businesses to extend operational capacity, where adding more people alone does not solve the problem fast enough.

This is especially relevant in the UAE, where digital maturity has raised expectations across both public and private sectors, with the UAE ranking 11th globally in the UN’s 2024 E-Government Development Index. This stronger digital environment has also raised expectations. Businesses need tools that can help them move quickly, stay consistent, and maintain control when pressure rises.

From Tools to Agents

With around 84% of GCC organisations adopting AI, it must prove its operational value. This is where autonomous AI agents stand apart from basic assistants. The lesson from digital transformation and automation is that technology creates the greatest impact where work cannot be carried out reliably at scale by people alone. That usually means high-volume, repetitive, rules-based, or time-sensitive tasks that still require consistency and traceability. A conventional assistant can answer a question, retrieve a document, or draft a message. An AI agent can operate across workflows, connect with enterprise applications and data sources, retrieve the information needed for a task, trigger an action, and escalate the case when human judgment is required. AI agents are less like a front-end convenience and more like a digital workforce layer that supports execution inside the business.

Keeping Service on Track

Customer service is often the first area where this becomes visible because it sits at the intersection of urgency, expectation, and reputation. When volumes rise, even strong teams can be slowed by manual routing, repeated verification, inconsistent answers, or language limitations. A customer support agent can handle thousands of routine queries across languages and channels without making customers wait for basic answers.

In fact, enterprise deployment data points to AI agents that can operate in 70+ languages, integrate with core business platforms such as CRM and support systems, and scale to handle 100,000+ interactions per day. Outcomes include 95% first-contact resolution, a 70% reduction in calls, and around 40% lower support costs. In a high-pressure environment, the benefit of an AI agent is that it helps the organisation respond at scale without allowing service quality to collapse under volume.

Compliance Under Pressure

Businesses often wrongly assume AI will automatically make operations faster, but the speed needs to be usable inside a controlled environment. If an agent cannot follow policy, log its actions, flag discrepancies, and escalate exceptions correctly, then it simply moves the risk somewhere harder to see. Well-designed AI agents can reduce delay by supporting documentation checks, rule-based workflows, anomaly flagging, and routing complex issues to the right human decision-maker while maintaining auditability.

For instance, Yango Tech’s AI debt collector agent can support repayment workflows, structure payment plan discussions, apply pre-set compliance rules, and manage routine follow-ups while flagging exception cases. A document analysis agent can review procurement files, compare them against required fields, and flag inconsistencies. The limits of disconnected tools are exposed very quickly in high-pressure environments, and businesses need systems that can work inside the operational environment that already exists.

Why digital workers are becoming relevant

In volatile conditions, where teams are stretched, leaders do not benefit from more dashboards or longer reports. Current industry findings show that organisations can lose 30 to 50% of efficiency to repetitive tasks. Too many skilled employees still spend time gathering updates, moving information between systems, or preparing routine reports instead of focusing on judgment, service recovery, and problem-solving. AI agents can absorb that repetitive load and help teams concentrate on higher-value work. They can surface relevant data from multiple systems, summarize key trends, identify pressure points, and reduce the delay between an operational change and a management response. Their role is to help leadership reach judgment faster, with better operational visibility and less reporting friction.

High-pressure environments reveal which technologies can support real execution. AI agents are most useful where organisations need to operate at a scale, speed, and consistency that people alone cannot sustain manually. But that only works when the system is designed with the right guardrails. Service quality, oversight, escalation logic, and traceability cannot be added later as an afterthought. Companies like Yango Tech create production-ready AI agents for high-pressure and fault-sensitive environments and help organisations deploy them in a governed, resilient, and reliable way under real operational strain.

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Tech Features

WHAT RUNNING AN AI-ENABLED CAMPAIGN TAUGHT US ABOUT MARKETING IN A REAL CITY LIKE DUBAI

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By Khaled Nuseibeh, Hala CEO

Artificial intelligence has quickly become part of the marketing conversation. New tools promise faster production, lower costs and endless variations of creative output. But for companies operating in real-world services, the technology itself is not the most important question. The real question is whether it helps communicate what actually happens on the ground.

In mobility, that distinction matters. When someone books a taxi, the experience is defined by whether the car arrives when it is supposed to. If it does not, no campaign can compensate for that. That reality shaped how we approached Count on Hala, a recent campaign designed to support new user acquisition while reflecting how the service operates across Dubai every day.

Hala runs hundreds of campaigns each year across different customer segments. In a fast-moving, highly competitive market like Dubai, speed and adaptability are essential. Artificial intelligence provides companies with a way to move faster, scale creative output and respond to changing market dynamics without losing clarity or relevance.

The campaign used AI across the creative execution, generating visuals, layouts and voiceovers for content deployed across out-of-home screens and targeted digital channels. However, the strategic direction, messaging framework and approvals remained firmly with our team.

Rather than positioning AI as the centre of the campaign, we focused on communicating measurable operational insights such as pickup speed, fleet scale and reliability. Messages such as “90% of taxi pickups in under five minutes” or “Meeting in 20 minutes? Taxi in 3” translated everyday service performance into clear, relatable moments.

Early campaign indicators reinforce the impact of this approach. In the first month following the launch, Hala recorded a 27.8% uplift in bookings, 19.2% increase in new users, and a click-through rate approximately 5x higher than previous campaigns, reflecting stronger engagement with the campaign messaging and visuals.

AI allowed these insights to be translated into creative assets quickly across multiple formats. But the technology itself was not the story. Running the campaign highlighted several practical lessons about how AI fits into busy marketing teams today.

1. Build campaigns around operational performance, not creative concepts

AI will amplify whatever information it is given. If the underlying service is inconsistent, the campaign will expose that quickly. For this campaign, the creative concept began with operational data, pickup speeds, fleet capacity and everyday travel scenarios across Dubai. These insights formed the foundation of the messaging rather than an abstract creative idea. In sectors such as mobility and transport logistics or aviation, marketing cannot exist separately from operations. Customers experience the service within minutes of seeing the campaign. If the message and the experience do not match, a brand’s credibility will quickly disappear.

2. Use AI to produce campaigns faster without changing the strategy

The campaign began with a simple idea: reliability. In a city like Dubai, where people are constantly on the move, everyday convenience matters. Artificial intelligence helped the team turn that idea into campaign content much faster than traditional production would allow. Instead of coordinating multiple shoots, locations and long approval timelines, operational insights could be turned into clear messages quickly. Lines such as “Meeting in 20 minutes? Taxi in 3” could appear across digital screens, social media and billboards within hours rather than weeks. The team still defined the message, tone and brand standards, while AI helped speed up how quickly those ideas could be produced and shared across the city.

3. AI creative for billboards and outdoor advertising still needs technical expertise

One common misconception about AI-generated creative is that it removes complexity from production. In reality, it often introduces new challenges. Early AI-generated visuals worked well for digital placements but were not always suitable for large-format outdoor advertising. When scaled for outdoor displays, some images were grainy and lacked the resolution required for high-visibility formats.

Achieving the required quality meant using several paid subscription tools and refining outputs across multiple stages. AI can accelerate creative exploration, but production expertise remains essential to ensure the final output meets the standards expected of large-scale advertising.

4. AI marketing still requires strict legal oversight and brand governance

The faster content can be produced, the more important governance becomes. Before launching the campaign, strict internal guidelines were established around how AI could be used. These covered cultural sensitivity, representation and compliance with UAE advertising standards.

All platforms used were vetted to ensure appropriate commercial usage rights, and every output was reviewed in collaboration with legal teams before publication. Regardless of which tools are used, the brand remains responsible for everything that appears in a campaign.

5. AI allows marketing teams to focus on insight-led storytelling rather than asset production

The most noticeable shift from the campaign was internal. Traditionally, marketing teams spend significant time producing individual creative assets. AI changes where that time is spent, instead of focusing on manual production, the team concentrated on identifying the insights that matter most to our customers; people who are moving around the city, whether its short journeys or tight schedules, their need is for reliable transport in everyday situations.

Artificial intelligence then made it easier to translate those insights into multiple creative executions across different formats. For a platform operating in a competitive market and running campaigns across multiple audiences throughout the year, that shift can make a meaningful difference.

In almost every sector, AI is already moving from experimentation into everyday systems across the region. Airlines use it to manage disruption. Logistics companies use it to anticipate congestion. Governments use it to plan infrastructure and transport networks.

Marketing will inevitably follow a similar path. AI will not replace traditional production or human creativity. Photography, filmed content and real-world storytelling remain essential, particularly when authenticity and emotional connection to your customer matters.

While we continue to embrace AI within our creative processes, it has not and cannot replace the creative agencies we work with. Human intervention, intuition, and creativity remain at the core of everything we do.

What AI can do is remove some of the friction in how campaigns are produced, allowing teams to respond faster while maintaining accuracy. Dubai is often described as a testbed for new technologies. In reality, the city simply demands that systems work under pressure, across different languages, cultures and moments of high demand. If an AI-enabled campaign can operate effectively in that environment, it is likely to work anywhere.

For companies exploring AI in marketing, the lesson is straightforward: focus on operational reality first. Technology should support how the business performs, not distract from it.

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FIVE BUSINESS FUNCTIONS ALREADY POWERED BY AI WORKFORCE

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Across the GCC, the real question is no longer whether organisations are using AI, but whether AI is actually doing the work. Most deployments still sit at the surface, assisting employees without changing how execution happens. AI is now moving beyond individual task support into structured workforce roles, where it carries responsibility across workflows, follows business logic, and executes within real enterprise systems. Gartner projects that by 2028, 33% of enterprise software applications will include agentic AI, up from less than 1% in 2024.

In the GCC, organisations are under pressure to scale faster, maintain service continuity, and improve cost discipline without adding unnecessary operational complexity. Digital Dubai recently launched the AI Workforce Transformation Program (AI+) to help train 50,000 government employees for an AI-ready workforce.

Shaffra, an AI research and applications company building autonomous AI teams for enterprises and governments, is already deploying this model across the region. The company highlights five business functions where AI is actively executing work inside organisations.

1. Customer service

One of the first functions to absorb AI as a workforce layer is customer service due to high-volume, time-sensitive, process-intensive requests every day. Autonomous AI Teams can handle routine queries across chat, email, WhatsApp, voice, and ticketing platforms while classifying urgency, routing cases, escalating exceptions, and updating records in real time. They can also pull customer history and identify recurring patterns linked to churn, complaints, or policy friction. Customer service teams have handled up to five times more queries through autonomous execution. This shifts customer service from a reactive support function into a continuously operating system that can absorb demand without linear increases in headcount.

2. Revenue operations

A more meaningful transformation is now happening in the commercial engine. Autonomous AI Teams can continuously monitor pipelines, detect stalled deals, flag procurement delays, identify pricing sensitivity, and improve forecast quality using live activity signals rather than backwards-looking updates. They can also support CRM hygiene, proposal workflows, approval chains, and internal coordination between multiple departments around account progression. PwC’s 2026 findings show that 45% of UAE CEOs are already using AI in demand generation across sales, marketing, and customer service. Leadership gets a clearer view of where revenue is genuinely at risk, where process friction is slowing conversion, and where intervention is needed before exposure turns into loss.

3. Human resources

In HR, recurring administrative work, policy enforcement, documentation, and employee support often follow structured paths that can be executed better when properly designed. Autonomous AI Teams can screen applicants, coordinate interviews, manage onboarding steps, answer routine employee questions, and flag missing approvals or documentation before delays compound. They can also support review cycles, workforce planning, and identify bottlenecks and process gaps early. Recruitment timelines are reduced from weeks to hours, while HR leaders review high-impact decisions.

4. Finance and accounting

In the financial department, AI needs to operate reliably within structured processes without compromising strict governance. Autonomous AI Teams can process invoices, support AP and AR workflows, follow up on missing information, review expenses against policy, and coordinate reconciliation and month-end close activities. They can also surface anomalies, identify unusual transaction patterns, and flag control exceptions for review. AI helps increase throughput while preserving auditability, approval discipline, and visibility across the finance operation. This allows finance teams to increase processing capacity without compromising control, shifting their role to oversight from execution.

5. Business operations

The most strategic application sits in business operations – where delivery, dependencies, handoffs, service levels, and internal performance come together. McKinsey’s finding that 84% of GCC organisations have adopted AI in at least one business function suggests the region is already moving into broader integration. Within operations, Autonomous AI Teams track workflows across systems, detect bottlenecks, monitor KPIs and SLAs, identify resource overload, and trigger interventions before issues become delivery failures. They can also support oversight by summarising status, escalating likely delays, and coordinating cross-functional execution in real time. Across Shaffra deployments in the Gulf, organisations have reported up to 80% reductions in operational costs and more than 2 million manual work hours saved monthly.

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