Contact Centers Evolve: Outsourcing and AI Drive Enhanced Customer Experience, Says ISG Report

A recent report from Information Services Group (ISG) III reveals a significant trend in U.S. enterprises toward outsourcing contact centers to boost customer experience (CX).

The 2024 ISG Provider Lens™ Contact Center – Customer Experience Services report highlights how CX has become a primary focus for businesses across the U.S. Cloud-based solutions and advanced technologies, including AI, have transformed contact centers, making them more adaptable to evolving customer needs.

“U.S. companies are transitioning from traditional support strategies to a more proactive stance, anticipating customer needs and offering tailored solutions,” remarked Wayne Butterfield, ISG partner specializing in digital solutions. “This rapid adoption of new technologies aims to enhance satisfaction for both customers and employees.”

According to the report, cloud-based contact centers enable businesses to efficiently manage both anticipated and unexpected demands, such as during crises or peak periods. These services not only cut costs associated with maintaining physical infrastructure, but they also allow firms to pay based on usage rather than a flat monthly fee, leading to significant savings. ISG notes that many companies reinvest these savings back into their operations.

AI tools like chatbots and automated response systems are becoming standard in the U.S. contact center landscape. The report states that they streamline operations and boost customer interactions. Moreover, AI-driven insights can analyze customer sentiments and foretell future needs, although concerns regarding security and privacy persist. Currently, Generative AI (GenAI) technology remains largely in testing phases within many organizations.

Automated customer service options, particularly chatbots, are now adept at resolving many common issues promptly, thus allowing human agents to dedicate their time to more complicated inquiries that require deeper understanding.

“While AI and automation offer numerous advantages, customers with complex issues still prefer the empathy and insight that only human agents can provide,” noted Jan Erik Aase, ISG’s partner and global leader for Provider Lens Research. “Providers are working with clients to strike a balance.”

The importance of cybersecurity, data privacy, and compliance is more pronounced than ever in U.S. contact center operations, especially with remote work becoming widespread. ISG highlights that modern contact centers are increasingly adopting advanced security measures, such as multifactor authentication, biometric protections, and private network connections to safeguard businesses and their customers.

The report also discusses other trends in the U.S. contact center sector, including a focus on enhancing the experience for agents and the rise of advisory services tailored to specific industries.

For more insights into the challenges U.S. enterprises face in contact centers, including hidden costs of outsourcing and data privacy risks associated with GenAI, refer to the ISG Provider Lens™ Focal Points briefing available here.

The 2024 ISG Provider Lens™ Contact Center – Customer Experience Services report evaluates 30 providers across three areas: Digital Operations, Intelligent Agent Experience, and Intelligent CX (AI & Analytics).

Leaders in all three quadrants include Atento, Conduent, Foundever, HGS, Sutherland, and Teleperformance. Cognizant, Concentrix, and Movate are recognized as leaders in two quadrants each. Alorica, Genpact, Tech Mahindra, Wipro, and WNS are distinguished as leaders in one quadrant each.

Additionally, IGT Solutions is acknowledged as a Rising Star in two quadrants, recognized for its “promising portfolio” and “high future potential” as per ISG’s criteria. Startek is also highlighted as a Rising Star in one quadrant.

In the customer experience domain, HCLTech is named the global ISG CX Star Performer for 2024 among contact center providers. It received the highest satisfaction ratings in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, which is widely regarded as a top quality recognition in the technology and business services sector.

The 2024 ISG Provider Lens™ Contact Center – Customer Experience Services report is available for subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series offers a unique evaluation of service providers, combining rigorous, data-driven analysis with insights from ISG’s global advisory team. Enterprises can access comprehensive data and market insights to inform their selection of service partners. ISG advisors utilize these reports to enhance their market understanding and advice clients accordingly. This research spans providers operating globally, including regions like Europe, the U.S., Canada, and others, with ongoing expansions planned for additional markets. For more details on ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) III is a trusted global technology research and advisory firm. Supporting over 900 clients, including more than 75 of the top 100 enterprises, ISG aims to help corporations, public sector entities, and service providers achieve operational excellence and accelerate growth. The firm specializes in digital transformation services like AI, cloud, and data analytics; sourcing advice; governance and risk services; and market research. Founded in 2006 and headquartered in Stamford, Conn., ISG employs over 1,600 skilled professionals across 20 countries, known for their innovative strategies and deep industry insights. Visit www.isg-one.com for more information.

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