Companies sign more service contracts,
quickly adopt new technologies to improve customer experience, ISG
Provider Lens™ report says
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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version on businesswire.com: https://www.businesswire.com/news/home/20241011498629/en/
Press Contacts:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978 518 4520
isg@matternow.com
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