STAMFORD, Conn.–(BUSINESS WIRE)–Oct 11, 2024–
Enterprises worldwide continue to outsource contact center functions, in search of lower costs and new technologies, despite a decline in the annual value of service contracts, according to a new research report published today by Information Services Group ( ISG ) (Nasdaq: III ), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ global Contact Center — Customer Experience Services report finds that the annual contract value for customer service business process outsourcing (BPO) shrank from $1.2 billion in the first half of 2023 to $0.8 billion in the first half of 2024. However, the number of contracts increased. This was in line with overall trends in BPO services as the market returned to pre-pandemic levels of demand following unprecedented growth in 2022 and early 2023.
“Cost reduction is the biggest driver of contact center outsourcing, but in most engagements, it is not the only objective,” said Wayne Butterfield, ISG partner, digital solutions. “Enterprises want providers to infuse their operations with new technologies that will improve customer and agent experience.”
As customer service technology quickly evolves, especially through cloud and AI innovation, companies are now integrating their internal IT resources with those of BPO providers, the report says. The gradual growth of IT-BPO integration comes as enterprises recognize the need for solutions that combine technology, workforce expertise and optimized processes.
The shift from on-premises to cloud-based contact centers is rapid and widespread, driven in part by the needs of employees working remotely and consumers who want to engage with brands over multiple digital channels, ISG says. Companies are also quickly deploying analytics tools to improve customer acquisition and retention.
The contact center industry is one of the most aggressive adopters of generative AI (GenAI), with many use cases already implemented or in mature proofs of concept, the report says. Emerging benefits of the technology include shorter query handling times, higher rates of resolving issues on the first call, fewer errors and improved customer and employee satisfaction. The most common use of GenAI today is in bots assisting agents, and companies are also pursuing more advanced applications, such as customer self-service bots and real-time translation.
“Enterprises are keen to explore and invest in GenAI,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It is raising their expectations for productivity and efficiency gains.”
As companies adopt and implement AI in various forms, many seek strategy consulting services to optimize the technology and realize strong ROI, the report says. Enterprises improve contact center operations and align with industry best practices using transformation frameworks and tools to assess their own maturity.
The report also explores other trends in contact center and customer experience operations, including the growing importance of integrated workforce management and the advent of personalized agent training content.
For more insights into the customer experience challenges facing enterprises, including the need to overcome siloed functions and adopt a multipronged approach for diverse audiences, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ global Contact Center — Customer Experience Services report evaluates the capabilities of 32 providers across three quadrants: Digital Operations, Intelligent Agent Experience and Intelligent CX (AI & Analytics).
The report names Foundever, Genpact, HGS, Sutherland, Teleperformance, Transcom and WNS as Leaders in all three quadrants. It names Atento, Cognizant, Movate and TTEC as Leaders in two quadrants each. Concentrix, Conduent and Tech Mahindra are named as Leaders in one quadrant each.
In addition, Firstsource, Hexaware, IGT Solutions and Startek are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2024 among contact center providers. HCLTech earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Foundever, HGS, Movate and WNS.
The 2024 ISG Provider Lens™ global Contact Center — Customer Experience Services report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG’s global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG’s enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III ) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.
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CONTACT: Press Contacts:Will Thoretz, ISG
+1 203 517 3119
[email protected] Sheridan, Matter Communications for ISG
+1 978 518 4520
[email protected]
KEYWORD: CONNECTICUT UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES DATA MANAGEMENT TECHNOLOGY OTHER TECHNOLOGY SOFTWARE CONSULTING ARTIFICIAL INTELLIGENCE
SOURCE: Information Services Group, Inc.
Copyright Business Wire 2024.
PUB: 10/11/2024 11:00 AM/DISC: 10/11/2024 11:02 AM
http://www.businesswire.com/news/home/20241011498629/en
