Enterprise Satisfaction With AI, Automation Services Lags Despite Growing Number of Deals, ISG Study Shows
Information Services Group's (ISG) latest Star of Excellence™ CX Insights Report reveals a growing trend in AI and automation outsourcing deals, despite lower customer satisfaction in these areas. The report shows an overall decline in provider satisfaction, with the average enterprise CX score dropping by over 3% to 71.5 out of 100.
Key findings include:
- Business Process Outsourcing (BPO) services received the highest average score (72.9)
- IT Outsourcing (ITO) services scored slightly lower (71.6)
- Ecosystem segment averaged 70.7, with Microsoft providers scoring highest
- Emerging Technology had the lowest average score (70.1), with Generative AI scoring lowest at 68.46
The report emphasizes the importance of customer experience in choosing outsourcing partners, especially following global technology outages this year.
Il più recente rapporto CX Insights Star of Excellence™ di Information Services Group (ISG) rivela una Crescente tendenza nei contratti di outsourcing per l'AI e l'automazione, nonostante una riduzione della soddisfazione dei clienti in queste aree. Il rapporto mostra un declino generale nella soddisfazione dei fornitori, con il punteggio medio di CX delle imprese in calo di oltre il 3% a 71,5 su 100.
Tra i principali risultati si evidenziano:
- I servizi di Business Process Outsourcing (BPO) hanno ricevuto il punteggio medio più alto (72,9)
- I servizi di IT Outsourcing (ITO) hanno ottenuto un punteggio leggermente inferiore (71,6)
- Il segmento Ecosystem ha avuto una media di 70,7, con i fornitori Microsoft che hanno ottenuto il punteggio più alto
- La Tecnologia Emergente ha registrato il punteggio medio più basso (70,1), con l'AI Generativa al minimo a 68,46
Il rapporto sottolinea l'importanza dell'esperienza del cliente nella scelta dei partner di outsourcing, specialmente dopo le interruzioni tecnologiche globali di quest'anno.
El último informe CX Insights Star of Excellence™ de Information Services Group (ISG) revela una creciente tendencia en los contratos de outsourcing de IA y automatización, a pesar de la menor satisfacción de los clientes en estas áreas. El informe muestra un declive general en la satisfacción de los proveedores, con un puntaje medio de CX empresarial cayendo más del 3% a 71.5 sobre 100.
Los hallazgos clave incluyen:
- Los servicios de Business Process Outsourcing (BPO) recibieron la puntuación media más alta (72.9)
- Los servicios de IT Outsourcing (ITO) puntuaron ligeramente más bajo (71.6)
- El segmento Ecosystem promedió 70.7, con los proveedores de Microsoft obteniendo la puntuación más alta
- La Tecnología Emergente tuvo la puntuación media más baja (70.1), con la IA Generativa puntuando más bajo a 68.46
El informe enfatiza la importancia de la experiencia del cliente en la elección de los socios de outsourcing, especialmente tras las interrupciones tecnológicas globales de este año.
Information Services Group(ISG)의 최신 Star of Excellence™ CX 인사이트 보고서는 AI 및 자동화 아웃소싱 계약의 증가 추세를 보여줍니다. 이는 이러한 분야에서 고객 만족도가 낮아졌음에도 불구하고 나타나는 현상입니다. 보고서는 제공자 만족도의 전반적인 감소를 보여주며, 기업 평균 CX 점수가 100점 만점에 71.5로 3% 이상 하락했습니다.
주요 결과는 다음과 같습니다:
- 비즈니스 프로세스 아웃소싱(BPO) 서비스가 가장 높은 평균 점수(72.9)를 기록했습니다.
- IT 아웃소싱(ITO) 서비스는 약간 낮은 점수(71.6)를 받았습니다.
- 생태계 세그먼트의 평균 점수는 70.7로, 마이크로소프트 제공자가 가장 높은 점수를 받았습니다.
- 신기술 분야는 가장 낮은 평균 점수(70.1)를 기록했으며, 생성 AI가 가장 낮은 점수인 68.46을 기록했습니다.
이 보고서는 아웃소싱 파트너 선택에서 고객 경험의 중요성을 강조하며, 특히 올해의 전 세계 기술 중단 이후 그러합니다.
Le dernier rapport CX Insights Star of Excellence™ de l'Information Services Group (ISG) révèle une tendance croissante dans les contrats d'externalisation de l'IA et de l'automatisation, malgré une satisfaction client en baisse dans ces domaines. Le rapport montre un déclin général de la satisfaction des fournisseurs, avec le score moyen CX des entreprises tombant de plus de 3% à 71,5 sur 100.
Les principales conclusions incluent:
- Les services de Business Process Outsourcing (BPO) ont reçu le score moyen le plus élevé (72,9)
- Les services d'IT Outsourcing (ITO) ont obtenu un score légèrement inférieur (71,6)
- Le segment de l'Écosystème avait une moyenne de 70,7, avec les fournisseurs de Microsoft obtenant le score le plus élevé
- La technologie émergente avait le score moyen le plus bas (70,1), l'IA générative ayant obtenu le score le plus bas à 68,46
Le rapport souligne l'importance de l'expérience client dans le choix des partenaires d'externalisation, en particulier suite aux pannes technologiques mondiales de cette année.
Der neueste Star of Excellence™ CX Insights Bericht von Information Services Group (ISG) zeigt einen wachenden Trend bei Outsourcing-Verträgen für KI und Automatisierung, trotz einer niedrigeren Kundenzufriedenheit in diesen Bereichen. Der Bericht zeigt einen gesamtlichen Rückgang der Zufriedenheit mit Anbietern, wobei der durchschnittliche CX-Score für Unternehmen um über 3% auf 71,5 von 100 gefallen ist.
Die wichtigsten Ergebnisse umfassen:
- Die Dienstleistungen des Business Process Outsourcing (BPO) erhielten die höchste durchschnittliche Bewertung (72,9)
- Die Dienstleistungen des IT Outsourcing (ITO) schnitten etwas schlechter ab (71,6)
- Der Ecosystem-Segment durchschnittlich 70,7, wobei die Anbieter von Microsoft die höchsten Werte erzielten
- Die aufkommende Technologie hatte die niedrigste durchschnittliche Punktzahl (70,1), wobei die Generative AI mit 68,46 die niedrigste Punktzahl erzielte
Der Bericht betont die Bedeutung der Kundenerfahrung bei der Auswahl von Outsourcing-Partnern, insbesondere nach den globalen Technikausfällen in diesem Jahr.
- Growing number of AI and automation outsourcing deals
- Marketing Technology received highest score within BPO segment
- Application development and maintenance (ADM) engagements earned highest average score for ITO services
- Microsoft ecosystem providers scored highest in the Ecosystem segment
- Cloud-native tools, including containers and serverless architectures, earned the highest score in the Emerging Technology segment (73.7)
- Overall customer satisfaction with providers down by more than 3% from previous year
- Generative AI received the lowest average CX score (68.46) of any emerging technology
- Supply chain services scored lowest within BPO segment due to ongoing disruptions
- Mainframe services received lowest ITO scores due to talent shortages and providers
- VMware ecosystem providers scored lowest in the Ecosystem segment due to acquisition and pricing changes
The ISG report reveals a 3% decline in overall customer satisfaction with outsourcing providers, signaling potential challenges in the tech services sector. This could impact revenues and client retention for IT service companies. The lower satisfaction scores for AI and automation services, despite increased deal activity, suggest a misalignment between expectations and delivery. This gap presents both risks and opportunities for service providers. Companies that can improve their AI and automation offerings may gain a competitive edge, while those failing to meet expectations could face client losses. The high scores for Microsoft ecosystem providers highlight the importance of strategic partnerships in the tech industry. Investors should monitor how service providers adapt to these trends, as it could significantly impact their market position and financial performance.
The report underscores a critical challenge in the AI and automation space: high demand coupled with low satisfaction. This disconnect likely stems from the complexity of implementing these technologies and unrealistic expectations. The particularly low score for Generative AI (GenAI) is noteworthy, given its current hype. It suggests that while companies are eager to adopt GenAI, they're struggling with practical implementation and value realization. On a positive note, the high scores for cloud-native tools indicate a maturing market where providers are delivering tangible benefits. The tech industry should focus on bridging the gap between AI hype and real-world application, potentially through better education, more robust implementation strategies and clearer communication of realistic outcomes to clients.
This report offers valuable insights into market dynamics across various tech domains. The decline in overall satisfaction could signal a shift in the competitive landscape, potentially opening doors for new entrants or disruptors. The high demand for AI and automation despite low satisfaction suggests a market ripe for innovation and improvement. Companies that can address these pain points effectively could see significant growth. The strong performance in Marketing Technology within BPO indicates a growing focus on customer-centric strategies, which could drive investment in this area. The low scores for mainframe services highlight the need for modernization in legacy systems, presenting opportunities for providers specializing in digital transformation. These trends could reshape investment priorities and market valuations in the tech services sector.
Overall customer satisfaction with providers down slightly from last year, ISG Star of Excellence™ CX Insights Report finds
The latest ISG Star of Excellence™ CX Insights Report, a quarterly review that sheds light on what enterprise buyers think about their service and solution providers, shows AI and automation are leading the charge for providers in winning new outsourcing deals in 2024. Many companies consider AI and automation important tools for improved efficiency and cost savings. However, based on average CX scores in the second quarter, clients were less satisfied with engagements that involved those technologies. Generative AI (GenAI), which has generated exceptionally high interest and expectations this year, received the lowest average CX score of any emerging technology.
Overall satisfaction with providers in the second quarter, as measured by the average enterprise CX score across all technologies, industries, and regions, declined by more than 3 percent from a year earlier, to an average score of 71.5 on a scale of 1-100.
“In the wake of global technology outages this year, customer experience is more important than ever to enterprises when choosing outsourcing partners,” said Heiko Henkes, ISG director and principal analyst in charge of the study. “To succeed under these conditions, providers need to understand the wide range of factors that can influence a client’s satisfaction at each stage of an engagement.”
In addition to overall CX scores, the second-quarter report focuses on CX scores by technology domain, following on from the first-quarter report, which examined CX scores by industry. Future reports will spotlight CX scores by geographic region (third quarter) and wrap up the year with an annual analysis (fourth quarter).
CX Scores by Technology Domain
The report examines CX scores across four broad categories of technology-based provider services: Business Process Outsourcing (BPO), IT Outsourcing (ITO), Ecosystem (covering specific vendors) and Emerging Technology. Customer satisfaction, the report notes, may be influenced by how common a technology is, the complexity of implementing it, the benefits it delivers, the availability of talent to support it, and how proactive vendors are about introducing it.
Enterprises gave providers the highest average score for BPO services, at 72.9, the report shows. Marketing Technology received the highest score within the BPO segment, with rapidly changing consumer needs driving more companies to demand tools to differentiate themselves. Supply chain services scored lowest, as ongoing disruptions and macroeconomic challenges sowed dissatisfaction with supply chains.
“While BPO engagements are trending down, enterprises continue to give above-average CX scores to some technology-supported services where the number of deals has declined,” Henkes said. “Providers are meeting enterprises’ needs in areas that are crucial to their customers’ success.”
Average CX scores for ITO were slightly lower at 71.6, indicating that providers must improve clients’ experience when delivering technology services, ISG says. Application development and maintenance (ADM) engagements earned the highest average score for ITO services as enterprises rely on ADM to achieve cost-effective digital transformations. The lowest ITO scores were for mainframe services, where talent shortages and a limited number of providers have plagued these aging technologies.
Enterprises gave a lower average score (70.7) in the Ecosystem segment, covering solutions and services related to major vendors’ technologies. Microsoft ecosystem providers scored highest in this segment, partly thanks to the company’s wide deployment of its Copilot AI agent across multiple industries. The lowest scores were in the VMware ecosystem, where the acquisition of the company and changes to its pricing plans have led to customer discontent.
Emerging Technology received the lowest average CX score (70.1) despite some enterprises rapidly adopting AI and automation solutions for improved efficiency and cost savings. GenAI was rated lowest in the segment at 68.46. Companies reported better experiences with cloud-native tools, including containers and serverless architectures, which earned the highest score in the segment (73.7).
The report also examines satisfaction with ITO and BPO services by region and key industries.
About ISG Star of Excellence™ CX Insights Research
CX scores reported in the ISG Star of Excellence™ CX Insights Report represent the weighted average of client satisfaction scores and importance scores across six dimensions: Execution and Delivery, Governance and Compliance, Collaboration and Transparency, Innovation and Thought Leadership, People and Cultural Fit, and Business Continuity and Flexibility.
Through ISG’s continuous Voice of the Customer survey research, customers are asked to rate the importance of each of the six dimensions and then rate their service provider/vendor on each, on a scale of 1-100. CX scores are also generated across industries, regions and technology domains and for each service provider/vendor.
ISG Star of Excellence™ CX Insights scores are an integral part of the provider assessments offered by ISG Provider Lens™ research, 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.
The 2Q 2024 ISG Star of Excellence™ CX Insights Report is available as a free download from this webpage, with more detailed findings, including by provider, available by contacting ISG.
Additional perspective on the second quarter of 2024 will be presented on the 2024 Star of Excellence™ CX Awards & Program Update webinar on August 29.
Enterprises that wish to participate in the ISG Voice of the Customer survey research can begin the process by visiting this website. Providers also can nominate their customers to participate.
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 and automation, 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
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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
Source: Information Services Group, Inc.
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