'Enterprises want providers to infuse their operations with new technologies that will improve customer and agent experience'
Despite a drop in the total value of service contracts, companies worldwide are increasing their adoption of contact center outsourcing.
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, according to Information Services Group (ISG).
Despite this, the number of contracts increased – 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, according to the report.
“Cost reduction is the biggest driver of contact center outsourcing, but in most engagements, it is not the only objective,” says Wayne Butterfield, ISG partner, digital solutions. “Enterprises want providers to infuse their operations with new technologies that will improve customer and agent experience.”
The majority of global enterprises that use generative AI (GenAI) have reported payoffs within the first year of its implementation, despite earlier indications that return on investment (ROI) on Gen AI initiatives won't be immediate, according to Google.
How can contact centers use GenAI?
The contact center industry is one of the most aggressive adopters of GenAI, with many use cases already implemented or in mature proofs of concept, according to the report.
Emerging benefits of the technology include:
- shorter query handling times
- higher rates of resolving issues on the first call
- fewer errors
- 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, finds ISG.
“Enterprises are keen to explore and invest in GenAI,” says Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “It is raising their expectations for productivity and efficiency gains.”
Adopting, implementing AI
As companies adopt and implement AI in various forms, many seek strategy consulting services to optimize the technology and realize strong ROI. And they improve contact center operations and align with industry best practices using transformation frameworks and tools to assess their own maturity, according to the report.
ISG suggests that engaging with outsourcing partners will enable enterprises to focus on their core business objectives.
“Strategic engagement with provides means that KPIs go beyond the traditional outcomes but align more strategically to the organization’s overall objectives, goals and vision,” says Namratha Dharshan, principal analyst, ISG. “Enterprises must recognize that there is no one-size-fits-all solution, but it is a meaningful collaboration with partners that can help achieve the end goals.”
Almost eight out of 10 – or 74% – midsize Canadian organizations are adopting GenAI into their business operations. But only 49% have full or partial integration of AI technologies, according to a survey by consulting firm RSM Canada.