manipulate response in apim outbound policies

Question

I have SOAP service that I have converted to rest in apim and returns the response in json using the following outbound policy:

<outbound>
    <base />
    <xml-to-json kind="direct" apply="always" consider-accept-header="false" />
</outbound>

Response output is like below:

"response": {"currentABNRecord": {
               "ABN": 
                   {
                    "identifierValue": "xxxxx",
                    "identifierStatusCode": "ACT",
                    "issuingPartyCode": null,
                    "replacedIndicator": "N"
                   }
                 }
             }

My requirement is to "manipulate" conditionally data by modifying "identifierStatusCode" and appending a new attribute "termsAnConditions" when "identifierStatusCode" is "ACT" and if it is DEL to "DELETED" to something else like below :

"response": {"currentABNRecord": {
               "ABN": 
                   {
                    "identifierValue": "xxxxx",
                    "identifierStatusCode": "ACT",
                    "issuingPartyCode": null,
                    "replacedIndicator": "N",
                    "termsAnConditions": "Some terms and conditions"
                   }
                 }
             }

How can I call an azure function(perform all the conditional logic in it ) in the outbound policy and return the modified object. Is this the correct approach or can I do it policies.