In a move aimed at reshaping the way Indian banks interact with customers, Tech Mahindra Limited announced on June 1 2023 a strategic partnership with Bank of Baroda to deploy a suite of next-generation digital solutions across the public sector lender’s contact centre operations. The collaboration will see the establishment of a dedicated Centre of Excellence (CoE) to integrate advanced tools, streamline processes, and enhance customer satisfaction.
The Mumbai-headquartered IT services provider, known for its digital transformation, consulting, and business re-engineering expertise, will spearhead the initiative with a focus on applying artificial intelligence (AI), automation, analytics, and immersive technologies. Bank of Baroda, India’s second-largest public sector bank by total business, said the tie-up was a major step forward in its digital transformation journey.
How will the new centre of excellence change Bank of Baroda’s contact centre operations?
Under the agreement, Tech Mahindra has set up a state-of-the-art CoE specifically for Bank of Baroda’s contact centre. This hub is designed to serve as both a development and deployment engine for digital tools tailored to the bank’s customer service needs. The CoE will equip service representatives with advanced systems that enable faster query resolution, personalised interactions, and seamless escalation handling.
The technology stack includes speech analytics to better interpret customer intent, quality monitoring tools to maintain service consistency, and a knowledge management portal to provide staff with instant access to information. Conversational interactive voice response (IVR) systems will make automated interactions more intuitive, while bot-based training tools will shorten onboarding times for new agents.
According to Bank of Baroda’s Chief General Manager, Dinesh Pant, these tools are expected to modernise non-core operations and help the bank meet evolving customer expectations across its extensive domestic network.
What technologies will Tech Mahindra bring into the partnership?
Tech Mahindra plans to integrate multiple layers of digital capability into Bank of Baroda’s contact centre ecosystem. Its portfolio spans AI, blockchain, 5G, augmented reality (AR), and virtual reality (VR) applications. In this project, AI-driven analytics and automation will form the backbone, while immersive technologies like AR and VR could play a role in training and simulation.
The company’s NXT.NOW framework and “DigitALL” philosophy focus on human-centric design and measurable business outcomes. By aligning these frameworks with Bank of Baroda’s operational goals, Tech Mahindra aims to deliver a customer experience that is both efficient and empathetic.
Birendra Sen, Business Head of Business Process Services at Tech Mahindra, said the partnership reinforces the belief that technology can profoundly alter traditional banking processes and position institutions for the future.
Why is this alliance significant for the Indian banking sector in 2023?
In 2023, Indian banks are navigating a fast-changing landscape where customer interactions are increasingly digital-first. With mobile banking, unified payments interface (UPI) transactions, and online loan applications becoming mainstream, contact centres have shifted from being complaint-resolution hubs to acting as relationship-management channels.
Public sector lenders like Bank of Baroda face the dual challenge of competing with private banks that are more agile in tech adoption, while also serving a broader demographic that includes customers less familiar with digital banking. Partnerships with IT services firms allow them to leapfrog infrastructure gaps and integrate cutting-edge solutions without lengthy in-house development cycles.
The Tech Mahindra–Bank of Baroda tie-up reflects a broader sector trend: using specialised external partners to drive customer-experience innovation while freeing bank resources to focus on core banking activities.
How does this partnership align with Bank of Baroda’s digital transformation goals?
Bank of Baroda has been pursuing a multi-year transformation strategy to enhance both its retail and corporate banking services through technology. Prior initiatives have included mobile banking upgrades, UPI integration, and blockchain pilots for trade finance.
By deploying a dedicated CoE in partnership with Tech Mahindra, the bank is extending its transformation into customer service, a high-impact touchpoint that shapes brand perception and loyalty. The solutions planned for the contact centre are intended to shorten call handling times, improve first-contact resolution rates, and offer a more personalised experience, which can directly influence customer retention in an era of rising competition.
What operational benefits could the CoE deliver for Bank of Baroda?
The operational benefits of the new CoE are expected to be significant. One key improvement lies in the standardisation of service quality across the bank’s multiple contact centre locations, ensuring customers receive consistent assistance regardless of where their calls are routed. Training efficiency is also set to improve, with automated, bot-based learning modules reducing the time required to onboard and upskill new hires.
The integration of real-time performance feedback through analytics dashboards will allow supervisors to identify and address issues quickly, enhancing agent productivity and customer satisfaction. Routine customer interactions, such as balance inquiries or status updates, will be automated, enabling human agents to dedicate more attention to complex cases requiring empathy and judgment. Finally, the CoE will enable rapid scaling of operations during peak demand periods, such as festival seasons or major policy rollouts, without a proportional increase in staffing costs.
How does Tech Mahindra’s expertise strengthen this initiative?
Tech Mahindra’s track record in the banking, financial services, and insurance (BFSI) sector includes implementing digital banking platforms, building AI-powered customer service bots, and managing large-scale IT infrastructure projects for global banks.
Its emphasis on a “human-centric experience” ensures that technological upgrades do not come at the cost of empathy in service delivery—a critical factor in industries like banking, where trust and personal rapport remain important. The firm’s investment in 5G and immersive technologies also gives Bank of Baroda a potential pathway to experiment with more advanced engagement models in the future.
What could this mean for customer experience in the near term?
If deployed effectively, customers interacting with Bank of Baroda’s contact centre may soon experience shorter wait times, clearer and more personalised responses, and smoother issue resolution. The integration of speech analytics could allow the bank to proactively identify common pain points and refine services accordingly.
By making the customer journey more efficient and personalised, the bank could also see improved net promoter scores (NPS) and higher adoption of its digital banking channels, reducing dependency on branch visits.
Why the Tech Mahindra–Bank of Baroda alliance could mark a turning point in India’s digital banking evolution
The Tech Mahindra–Bank of Baroda collaboration marks a significant investment in customer-experience transformation in India’s public sector banking. By combining Bank of Baroda’s scale with Tech Mahindra’s technological depth, the partnership sets out to redefine how a large, traditional bank can engage with millions of customers in a digital age.
With its CoE, integrated AI solutions, and commitment to operational efficiency, the alliance could emerge as a model for similar partnerships in the BFSI sector, potentially influencing how other banks approach digital contact centre transformation in the years ahead.
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