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[1]
Cost-cutting, GenAI Drive Contact Center Outsourcing By Investing.com
Companies sign more service contracts, quickly adopt new technologies to improve customer experience, ISG Provider Lensâ„¢ report says STAMFORD, Conn.--(BUSINESS WIRE)--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: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ 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 Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ 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 (NYSE:G), HGS, Sutherland, Teleperformance, Transcom and WNS (NYSE:WNS) as Leaders in all three quadrants. It names Atento (OTC:ATTOF), Cognizant (NASDAQ:CTSH), Movate and TTEC as Leaders in two quadrants each. Concentrix, Conduent (NASDAQ:CNDT) 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 Excellenceâ„¢ 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 Lensâ„¢ global Contact Center " Customer Experience Services report is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lensâ„¢ Research The ISG Provider Lensâ„¢ 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20241011498629/en/
[2]
Cost-cutting, GenAI Drive Contact Center Outsourcing - Information Servs Gr (NASDAQ:III)
Companies sign more service contracts, quickly adopt new technologies to improve customer experience, ISG Provider Lensâ„¢ 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) III, a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ 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 Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ 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 Excellenceâ„¢ 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 Lensâ„¢ global Contact Center -- Customer Experience Services report is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lensâ„¢ Research The ISG Provider Lensâ„¢ 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) 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20241011498629/en/ Market News and Data brought to you by Benzinga APIs
[3]
European Contact Centers Turn to Advanced CX Tools to Reduce Turnover By Investing.com
AI-powered systems and real-time analytics can improve the contact center agent experience, ISG Provider Lensâ„¢ report says LONDON--(BUSINESS WIRE)--Enterprises in Europe are seeking provider support and solutions that offer analytics, omnichannel engagement and personalization to enhance both the customer experience (CX) and contact center agent satisfaction and retention, according to a new research report published today by Information Services Group (ISG) (Nasdaq: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Europe says the European market is experiencing rapid growth in advanced CX, with many businesses considering CX to be a metric for overall business success and a foundational component in the contact center platforms they deploy. Advanced enterprise contact centers act as the central point for customer interactions, utilizing a combination of technologies and human interactions to effectively address customer needs, said Wayne Butterfield, partner, ISG Digital Solutions. Analytics, omnichannel engagement and personalization are all key to delivering advanced CX. Despite the advantages of automation and AI, striking a balance between technology and human interaction is crucial. Customers highly value the empathy and understanding provided by human agents, especially when dealing with complex issues. Making call center technology empathetic to customers requires a high degree of customization. AI automates the processes call center agents use to address customer issues and personalize the interaction. Remote employee engagement, gamification, collaboration assistance and health assessment functions enabled by AI all promote improved work satisfaction among agents, the report finds. The use of AI in automation tools eliminates the need for agents to perform repetitive tasks, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. For contact centers, AI infuses CX tools with interactive voice response (IVR) and natural-language processing, giving agents more time to focus on issues that require greater accuracy and efficiency. Generative AI still has the potential to transform CX experiences, but concerns about security and boundaries are slowing widespread adoption, the report says. For more insights into the contact center CX platform challenges enterprises face, including the need to train agents on new technology and comply with a multitude of regulations, plus ISG's advice for addressing these issues, see the ISG Provider Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Europe evaluates the capabilities of 28 providers across three quadrants: Digital Operations, Intelligent Agent Experience, and Intelligent CX (AI & Analytics). The report names Atento (OTC:ATTOF), Capita, Concentrix, Conduent (NASDAQ:CNDT), Firstsource, Foundever, Movate, Teleperformance, Transcom and Wipro (NYSE:WIT) as Leaders in all three quadrants. Tech Mahindra was named a Leader in one quadrant. In addition, HGS is named as a Rising Star " a company with a promising portfolio and high future potential by ISG's definition " in two categories. IGT Solutions is named a Rising Star in one category. In the area of customer experience, HCL Tech is named the global ISG CX Star Performer for 2024 among contact center and CX providers. HCL Tech earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellenceâ„¢ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Capita. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Europe is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lensâ„¢ Research The ISG Provider Lensâ„¢ 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.
[4]
Australian Firms Inject AI, Automation into Contact Centers By Investing.com
Companies turn to outsourcers for access to new technologies, improving customer and agent experience, ISG Provider Lensâ„¢ report says SYDNEY--(BUSINESS WIRE)--Enterprises in Australia are outsourcing contact center operations to take advantage of new technologies as well as to save labor costs, according to a new research report published today by Information Services Group (ISG) (Nasdaq: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Australia finds that effective contact centers in Australia are combining traditional and innovative approaches for outstanding omnichannel customer service that adapts to changing customer preferences. Companies are automating processes for higher efficiency and cost optimization, embracing advances in AI and other technologies to continue this trend. The contact center strategies of Australian companies are now driven by senior executives, said Michael Gale, partner and regional leader, ISG Asia Pacific. They are sharply focused on integrated solutions that combine technology, optimized processes and workforce expertise. Technological advancements, new customer demands and changing workplace dynamics are forcing Australian enterprises to reassess their contact center operations, the report says. Since the COVID-19 pandemic, they have turned to cloud-based contact centers to ensure scalability, security and business continuity during times of crisis. This shift is expected to also increase demand for complementary cloud-based tools, such as unified communications as a service (UCaaS) and agent engagement features. Companies are already adopting AI-enabled automation for routine contact center tasks, such as ticket categorization, query handling and customer data management, ISG says. This shortens response time and increases efficiency, allowing human agents to focus on more complex, value-added interactions. Also, AI applications such as speech and sentiment analytics have strengthened firms' ability to gauge and respond to customer attitudes. GenAI may be on the verge of significantly disrupting contact center operations, in Australia and other markets, as use cases proliferate, the report says. Among other things, it can help companies analyze previous interactions with consumers to customize responses and empower human agents with suggestions during live chats. Most of the GenAI use cases being developed are either mature proofs of concept or already implemented. AI, analytics and automation are transforming the contact center industry in Australia, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. GenAI is the next step to improving both customer and agent experiences. The report also examines other contact center trends in Australia, including the growing complexity of regulatory compliance and providers' ongoing efforts to balance onshore and offshore operations. For more insights into the contact center challenges faced by Australian enterprises, including the need to expand the talent search beyond local borders and the keen interest in leveraging technology to improve interactions, plus ISG's advice for overcoming them, see the ISG Provider Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Australia evaluates the capabilities of 26 providers across two quadrants: Digital Operations and Intelligent Operations. The report names Acquire BPO, Concentrix, Datacom, Foundever, Probe Group, Tech Mahindra, Teleperformance and TSA as Leaders in both quadrants. It names Genpact (NYSE:G), TTEC and WNS (NYSE:WNS) as Leaders in one quadrant each. In addition, Genpact and TTEC are named as Rising Stars " companies with a promising portfolio and high future potential by ISG's definition " in one quadrant each. A customized version of the report is available from Probe Group. 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 Excellenceâ„¢ program, the premier quality recognition for the technology and business services industry. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Australia is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lensâ„¢ Research The ISG Provider Lensâ„¢ 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.
[5]
Brazilian Firms Invest in Contact Center Innovations By Investing.com
Companies embrace AI, automation, GenAI to satisfy growing customer expectations while controlling costs, ISG Provider Lensâ„¢ report says SÃO PAULO--(BUSINESS WIRE)--Enterprises in Brazil are adopting new contact center technologies and services, many enabled by AI, recognizing that customer experience is critical to their competitiveness, according to a new research report published today by Information Services Group (ISG) (Nasdaq: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Brazil finds that intensive use of technology has significantly changed contact centers in recent years, both in Brazil and elsewhere. At the same time, enterprises are under pressure to meet rising consumer expectations for connecting with brands. This requires huge investments in systems to give customers quick, personalized brand experiences through whatever digital channel they choose. Customer satisfaction has never been more important to companies in Brazil, and delivering it has never been more complex, said Wayne Butterfield, partner, ISG Digital Solutions. Contact center providers continue to build out new capabilities to help clients keep up. Facing the high costs of maintaining internal teams, modernizing processes and implementing new technologies, many Brazilian enterprises outsource contact center functions to optimize costs, ISG says. They engage with CX companies for access to best practices in the sector, aiming to improve the quality of their customers' experiences. Advances brought about through AI, ML and automation will intensify the ongoing transformation of contact centers, the report says. They may enable companies to interact more efficiently with customers, respond to demands more quickly and consistently and improve the overall user experience. The adoption of Generative AI (GenAI) is more mature in contact centers than in other sectors, with pilots in advanced stages and some use cases already in production, ISG says. Many involve the development of chatbots and virtual assistants that can solve a wider range of problems and give more precise and context-appropriate responses. GenAI is also improving sentiment analysis to help chatbots adapt their responses to customers' feelings and intent. GenAI still has vast potential that has yet to be tapped, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. Providers and enterprises will continue to invest in it to improve productivity and customer experience. Automation is also a priority for enterprises in Brazil, which seek to improve customer support while reducing operating costs, the report says. It can free contact center agents from repetitive and manual tasks, giving them more time to focus on actions that contribute more to customer satisfaction. Many Brazilian consumers still value detailed, personalized help from an agent over the phone, especially to resolve complex problems. New technologies, including AI, are also transforming billing contact centers in Brazil, ISG says. Among other uses, AI-enabled analytics have been used to prioritize contacts based on the likelihood of their answering and to anticipate the behavior of debtors. The report also examines other contact center trends affecting Brazilian enterprises, including less aggressive approaches to collections and providers' growing investments in partner ecosystems. For more insights into the contact center challenges of Brazilian companies, including a shortage of professionals qualified to capture the potential of new technologies, plus ISG's advice for addressing these issues, see the ISG Provider Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Brazil evaluates the capabilities of 31 providers across four quadrants: Digital Operations, Intelligent Agent Experience, Intelligent CX (AI & Analytics) and Debt Collection Services. The report names AeC and Atento (OTC:ATTOF) as Leaders in all four quadrants. It names AlmavivA, Concentrix, Foundever, Konecta, NEO and Teleperformance as Leaders in three quadrants each. AlgarTech is named as a leader in two quadrants, and Paschoalotto, Pluris MÃÂdia and Sercom are named as Leaders in one quadrant each. In addition, Algar Tech, Kainos (LON:KNOS) BPOTECH, Stefanini, TTEC and Winover are named as Rising Stars " companies with a promising portfolio and high future potential by ISG's definition " in one quadrant each. A customized version of the report is available from AEC. 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, which is part of the ISG Star of Excellenceâ„¢ program, program, the premier quality recognition for the technology and business services industry. The 2024 ISG Provider Lensâ„¢ Contact Center " Customer Experience Services report for Brazil is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lensâ„¢ Research The ISG Provider Lensâ„¢ 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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A new ISG report reveals that enterprises worldwide are increasingly outsourcing contact center functions and adopting advanced technologies like AI and automation to improve customer experience while reducing costs.
The contact center industry is undergoing significant transformation globally, driven by cost-cutting measures and the adoption of advanced technologies. According to a new report by Information Services Group (ISG), enterprises worldwide are increasingly outsourcing their contact center functions to reduce costs and leverage new technologies 1.
Despite a decline in the annual contract value for customer service business process outsourcing (BPO) from $1.billion in the first half of 2023 to $0.billion in the first half of 2024, the number of contracts has increased. This trend aligns with the overall BPO services market, which is returning to pre-pandemic levels following unprecedented growth in 2022 and early 2023 2.
The contact center industry is rapidly adopting new technologies to enhance customer experience and operational efficiency:
Cloud Migration: There's a widespread shift from on-premises to cloud-based contact centers, driven by remote work needs and consumer demand for multi-channel engagement 1.
AI and Analytics: Companies are 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 2.
Automation: Enterprises are automating routine tasks such as ticket categorization, query handling, and customer data management to increase efficiency and allow human agents to focus on more complex interactions 4.
European enterprises are focusing on analytics, omnichannel engagement, and personalization to enhance both customer experience (CX) and agent satisfaction. The market is experiencing rapid growth in advanced CX, with many businesses considering it a metric for overall business success 3.
Australian firms are embracing cloud-based contact centers to ensure scalability, security, and business continuity. They are also adopting AI-enabled automation for routine tasks and exploring GenAI applications to improve both customer and agent experiences 4.
Brazilian enterprises are investing heavily in new contact center technologies, recognizing customer experience as critical to their competitiveness. Many are outsourcing contact center functions to optimize costs and gain access to best practices in the sector 5.
The contact center industry is poised for continued transformation, with GenAI expected to play a significant role. As enterprises and providers invest in these technologies, the focus will remain on improving productivity, enhancing customer experience, and striking a balance between automation and human interaction. The integration of IT and BPO services is likely to grow, as companies recognize the need for solutions that combine technology, workforce expertise, and optimized processes.
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