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Satisfaction With Provider Services Edges Up, as Companies Seek More Innovation, ISG Study Shows

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According to ISG's Star of Excellence™ CX Insights Report, enterprise buyers rated their customer experience slightly higher in Q3, with the overall score increasing to 75.1 from 75.0 year-over-year. Providers scored highest in Governance and Compliance across all regions, while Innovation and Thought Leadership received the lowest ratings.

Regional analysis shows Asia Pacific leading with the highest average CX score (78.06), followed by Americas (77.78) and EMEA (77.32). BPO services received higher CX scores than ITO services across regions. Among emerging technologies, cloud native services rated highest, while GenAI services received the lowest average CX score despite high market interest.

Secondo il rapporto ISG Star of Excellence™ CX Insights, gli acquirenti aziendali hanno valutato leggermente meglio la loro esperienza cliente nel terzo trimestre, con un punteggio complessivo che è passato da 75.0 a 75.1 rispetto all'anno precedente. I fornitori hanno ottenuto il punteggio più alto in Governance e Compliance in tutte le regioni, mentre Innovazione e Leadership di Pensiero hanno ricevuto le valutazioni più basse.

L'analisi regionale mostra che l'Asia Pacifico è in testa con il punteggio medio CX più alto (78.06), seguita dalle Americhe (77.78) e dall'EMEA (77.32). I servizi BPO hanno ricevuto punteggi CX più elevati rispetto ai servizi ITO in tutte le regioni. Tra le tecnologie emergenti, i servizi cloud native hanno ottenuto il punteggio più alto, mentre i servizi GenAI hanno registrato il punteggio CX medio più basso nonostante l'alto interesse di mercato.

Según el informe ISG Star of Excellence™ CX Insights, los compradores empresariales calificaron su experiencia del cliente ligeramente mejor en el tercer trimestre, con un puntaje general que aumentó a 75.1 desde 75.0 en comparación con el año anterior. Los proveedores obtuvieron la puntuación más alta en Gobernanza y Cumplimiento en todas las regiones, mientras que Innovación y Liderazgo de Pensamiento recibieron las calificaciones más bajas.

El análisis regional muestra que Asia Pacífico lidera con el puntaje medio de CX más alto (78.06), seguido por las Américas (77.78) y EMEA (77.32). Los servicios BPO recibieron puntuaciones CX más altas que los servicios ITO en todas las regiones. Entre las tecnologías emergentes, los servicios nativos de la nube fueron los mejor calificados, mientras que los servicios GenAI recibieron el puntaje medio de CX más bajo a pesar del alto interés del mercado.

ISG의 스타 오브 엑셀런스™ CX 인사이트 보고서에 따르면, 기업 고객들은 3분기 동안 고객 경험을 약간 더 높게 평가했으며, 전체 점수는 전년 대비 75.0에서 75.1로 증가했습니다. 공급자는 모든 지역에서 거버넌스 및 규정 준수에서 가장 높은 점수를 받았습니다. 반면 혁신 및 사고 리더십은 가장 낮은 평가를 받았습니다.

지역별 분석 결과 아시아 태평양 지역이 가장 높은 평균 CX 점수 (78.06)를 기록했습니다. 그 뒤를 이어 아메리카 (77.78)와 EMEA (77.32)가 있습니다. BPO 서비스는 지역별로 ITO 서비스보다 높은 CX 점수를 받았습니다. 신흥 기술 중 클라우드 네이티브 서비스가 가장 높은 평가를 받았고, 시장의 높은 관심에도 불구하고 GenAI 서비스는 평균 CX 점수가 가장 낮았습니다.

Selon le rapport ISG Star of Excellence™ CX Insights, les acheteurs d'entreprise ont légèrement augmenté leur évaluation de l'expérience client au troisième trimestre, le score global passant de 75.0 à 75.1 par rapport à l'année précédente. Les fournisseurs ont obtenu les notes les plus élevées en matière de Gouvernance et de Conformité dans toutes les régions, tandis que l'Innovation et le Leadership de Pensée ont reçu les évaluations les plus basses.

L'analyse régionale montre que la région Asie-Pacifique est en tête avec le score CX moyen le plus élevé (78.06), suivie des Amériques (77.78) et de l'EMEA (77.32). Les services BPO ont reçu des scores CX plus élevés que les services ITO dans toutes les régions. Parmi les technologies émergentes, les services natifs du cloud ont obtenu les meilleures notes, tandis que les services GenAI ont reçu la note CX moyenne la plus basse malgré un intérêt élevé du marché.

Laut dem ISG Star of Excellence™ CX Insights Bericht bewerteten Unternehmenskäufer ihre Kundenerfahrung im dritten Quartal leicht höher, wobei der Gesamtscore von 75.0 auf 75.1 im Jahresvergleich anstieg. Die Anbieter erzielten die höchsten Punktzahlen in den Bereichen Governance und Compliance in allen Regionen, während Innovation und Thought Leadership die niedrigsten Bewertungen erhielten.

Die regionale Analyse zeigt, dass der asiatisch-pazifische Raum mit dem höchsten durchschnittlichen CX-Score (78.06) führt, gefolgt von den Amerikas (77.78) und EMEA (77.32). BPO-Dienste erhielten in allen Regionen höhere CX-Scores als ITO-Dienste. Unter den aufkommenden Technologien erzielten cloud-native Dienste die höchsten Bewertungen, während GenAI-Dienste trotz des hohen Marktinteresses die niedrigste durchschnittliche CX-Bewertung erhielten.

Positive
  • Overall customer experience score improved to 75.1 from 75.0 year-over-year
  • Improvement in three of six CX pillars, with biggest gains in Execution and Delivery
  • Strong performance in Governance and Compliance across all regions
  • BPO services outperformed ITO services in customer satisfaction
Negative
  • Innovation and Thought Leadership scores declined 0.4% to 73.7
  • Innovation constrained by tight budgets and reduced investment in new initiatives
  • GenAI services received lowest average CX score among emerging technologies
  • Importance rating for Innovation declined 3.8% to 72.3, lowest among all pillars

Insights

The latest ISG Star of Excellence™ CX Insights Report reveals subtle but notable shifts in enterprise customer satisfaction with technology service providers. The marginal increase in overall CX score to 75.1% masks significant regional variations and emerging challenges. The decline in innovation scores, dropping 0.4% to 73.7%, is particularly concerning for the industry's future growth trajectory.

The regional disparity in satisfaction scores - with APAC leading at 78.06%, followed by Americas at 77.78% and EMEA at 77.32% - reflects varying market maturity levels and client expectations. The strong performance in governance and compliance, especially amid GenAI adoption, indicates providers are effectively managing regulatory risks while potentially sacrificing innovation due to budget constraints.

For investors, this data suggests a sector experiencing stable but modest growth, with providers potentially needing to increase R&D investment to maintain competitive advantages in an increasingly AI-driven market landscape.

Providers score highest for governance and compliance worldwide, while other ratings vary by region, ISG Star of Excellence™ CX Insights Report finds

STAMFORD, Conn.--(BUSINESS WIRE)-- Enterprise buyers of technology and business services rate their customer experience slightly higher than a year ago, praising providers’ compliance expertise while giving low scores for innovation, according to a new report from Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

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 the average overall enterprise customer experience (CX) score in the third quarter increased to 75.1 from 75.0 in the same period last year. The survey covers providers of IT outsourcing (ITO) and business process outsourcing (BPO) services, as well as hyperscalers and independent software providers.

Average CX scores rose in three of the six CX pillars covered by ISG’s survey, with the biggest improvement in “Execution and Delivery.” Across all regions, enterprises continued to rate providers highest on “Governance and Compliance” and lowest on “Innovation and Thought Leadership.”

The average CX score for “Innovation and Thought Leadership” fell 0.4 percent to 73.7, while  enterprises’ rating of its importance declined 3.8 percent to 72.3, the lowest of the six pillars. Innovation has been constrained by tight budgets at many organizations, leading to reduced investment in new initiatives, ISG says. 

Despite a decline from last year, high CX ratings for “Governance and Compliance” show that providers continue to meet these requirements as they grow in importance, particularly with the emergence of generative AI.

“Providers are helping clients address a growing number of regulations, especially around the privacy and security of GenAI, and most enterprises remain happy with their providers’ performance in this area,” said Heiko Henkes, ISG managing director and principal analyst who oversees the research program. “At the same time, companies seeking new strategies and emerging technologies want providers to offer more leadership.”

Average CX scores for “Execution and Delivery,” “People and Culture Fit” and “Business Continuity and Flexibility” increased from the same time last year, the report says. “Collaboration and Transparency” scores fell slightly.

In addition to overall CX scores, the third-quarter report focuses on CX scores by geographic region, following on from the first-quarter report, which examined CX scores by industry, and the second-quarter report, which highlighted scores by technology domain. The fourth-quarter report will provide an annual analysis.

CX Scores by Region

Enterprises in Asia Pacific (APAC) gave the highest average CX score across all pillars (78.06), followed by Americas (77.78) and Europe, Middle East and Africa (EMEA) (77.32). Companies in APAC engage in smaller contracts but make high demands of their providers for adapting to changes in the external environment and other factors, the report says. APAC enterprises recognized providers for proactively resolving issues and carrying out projects on time, rating them highest for “Governance and Compliance” and “Execution and Delivery.”

Enterprises in Central/South America gave higher scores than those in North America, ISG says. Understanding and reflecting regional nuances, including cultural requirements, is important in the Americas, which gives providers based in the region an edge. Enterprises in EMEA recognized providers for being open to constructive criticism and executing plans on time. Within that region, ISG data shows more deal activity and higher CX scores from Western Europe.

Across all regions, more BPO services than ITO services received high CX scores, the report says. In the BPO category, digital engineering services scored highest in Americas and EMEA, while contact center — customer experience services led in APAC. Among ITO services, only application development and maintenance (ADM) scored highly in all regions. Among emerging technologies, cloud native (containers/serverless architecture) services rated highest in all regions.

Provider engagements around GenAI, which has attracted exceptionally high interest and expectations this year, again received the lowest average CX score of any emerging technology.

Provider services for the business services industry earned the highest CX scores in all regions, despite a decline in the number of contracts for that industry, ISG says. In Americas and APAC, services for the public sector received the lowest ratings, while in EMEA, oil and gas services scored the lowest.

The report gives additional details about satisfaction with ITO, BPO, hyperscaler and software services across these categories and also provides insights into CX scores by business roles, including IT, line of business and non-IT horizontal business functions.

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 3Q 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.

Enterprises who 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, 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.

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.

FAQ

What was ISG's (III) overall customer experience score in Q3 2023?

The overall enterprise customer experience score in Q3 2023 was 75.1, slightly up from 75.0 in the same period last year.

Which region showed the highest customer satisfaction in ISG's (III) latest report?

Asia Pacific (APAC) showed the highest average CX score of 78.06, followed by Americas (77.78) and EMEA (77.32).

How did GenAI services perform in ISG's (III) customer satisfaction ratings?

GenAI services received the lowest average CX score among all emerging technologies, despite high market interest and expectations.

Which service type received better customer satisfaction scores in ISG's (III) report?

BPO services received higher CX scores than ITO services across all regions.

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