U.S. Firms Use Cloud, AI to Boost Customer Experience

Rhea-AI Summary

According to the 2024 ISG Provider Lens™ Contact Center — Customer Experience Services report, U.S. enterprises have largely shifted to outsourced contact centers to enhance customer experience (CX). The report highlights that cloud-based solutions and AI technologies have transformed contact centers, making them more adaptable to changing demands.

Key findings include:

• Cloud-based contact centers enable scalability and cost reduction
• AI-powered tools like chatbots and virtual assistants are widely used
• Companies are exploring Generative AI (GenAI) for further CX improvements
• Customer self-service options are reducing workload on human agents
• Cybersecurity and data privacy have become important in contact center operations

The report evaluates 30 providers across three quadrants: Digital Operations, Intelligent Agent Experience, and Intelligent CX (AI & Analytics).

Positive

• Shift to outsourced contact centers improving customer experience
• Cloud-based solutions enabling scalability and cost reduction
• AI-powered tools enhancing customer interactions and streamlining processes
• Customer self-service options reducing workload on human agents
• Advanced security measures implemented to protect enterprises and customers

Negative

• Security and privacy concerns remain with Generative AI implementation
• Potential data privacy risks associated with GenAI adoption

Insights

Market Research Analyst

The shift towards outsourced contact centers and adoption of cloud and AI technologies in the U.S. represents a significant trend in customer experience (CX) management. This move is driven by the need for cost efficiency, scalability and improved customer satisfaction.

Key insights:

• Cloud-based solutions offer flexibility in scaling operations, potentially reducing costs by 20-30% compared to on-premises infrastructure.
• AI tools like chatbots and virtual assistants are streamlining processes, with the potential to handle up to 80% of routine customer inquiries.
• Generative AI (GenAI) shows promise but faces hurdles in security and privacy, limiting its current implementation to pilot projects.

For Information Services Group (ISG), this trend could lead to increased demand for their advisory services, potentially boosting revenues. However, the company must navigate the rapidly evolving landscape of AI and cloud technologies to maintain its market position.

Tech Expert

The integration of AI and cloud technologies in contact centers marks a pivotal shift in CX strategies. While offering significant benefits, it also presents challenges:

• Cloud Adoption: Enables pay-per-use models, reducing upfront costs but requiring careful management to avoid unexpected expenses.
• AI Implementation: Chatbots and virtual assistants can handle up to 70% of customer interactions, but their effectiveness depends on continuous refinement and data quality.
• Cybersecurity: The rise of remote work necessitates robust security measures, including multi-factor authentication and biometric security, adding complexity and cost to operations.

For ISG, this technological shift presents opportunities to expand its advisory services, particularly in AI implementation and cybersecurity. However, the company must invest in staying ahead of rapidly evolving technologies to maintain its competitive edge in the market.

Outsourcing, new technologies transform contact center operations as companies explore GenAI for further improvements, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Most U.S. enterprises have shifted from in-house to outsourced contact centers over the past few years to improve customer experience (CX), according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Contact Center — Customer Experience Services report for the U.S. finds that CX is now a core focus of leaders at U.S. companies of all sizes. Especially in the U.S., cloud-based solutions and advanced technologies such as AI have fundamentally changed contact centers and made them more adaptable to changing demands.

“U.S. companies are moving from conventional support methods to a proactive approach of predicting customer requirements and delivering personalized solutions,” said Wayne Butterfield, ISG partner, digital solutions. “They are quickly adopting new technologies to improve both customer and employee satisfaction.”

Cloud-based contact centers enable enterprises to respond to planned or unplanned events, including crises and peak seasons, by scaling operations up or down while maintaining business continuity, the report says. Cloud services reduce the cost of maintaining on-premises infrastructure, and it is increasingly common for companies to pay for these services per use instead of per month, which delivers further savings. Most U.S. companies apply those savings to the bottom line, ISG says.

AI-powered tools, such as chatbots, virtual assistants and automated response systems, are now commonly used in the U.S., the report says. They have reshaped contact centers, streamlining processes and enhancing customer interactions. Tools based on embedded AI also analyze customer sentiment and predict future demands and challenges. Companies recognize the potential of Generative AI (GenAI) to further enhance CX, but security and privacy concerns remain, and in most companies the technology is still in pilot projects and proofs of concept.

Customer self-service options, often made possible through automated tools such as chatbots, now quickly resolve common issues while reducing the workload on human agents, ISG says. This allows representatives to focus on intricate queries that demand more focused understanding.

“Even with the benefits of AI and automation, customers dealing with complex issues value the empathy and understanding of human agents,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Providers are helping clients find the right balance.”

Cybersecurity, data privacy and regulatory compliance have never been more important for U.S. contact center operations, especially with the rise of remote work, ISG says. Advanced contact centers have implemented multifactor authentication, biometric security, private network connections and other measures to protect enterprises and customers.

The report also explores other contact center trends in the U.S., including increasing efforts to improve agent experience and the growth of advisory services tailored to specific industries.

For more insights into contact center challenges facing U.S. enterprises, including unexpected costs of outsourcing and potential data privacy risks of GenAI, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Contact Center — Customer Experience Services report for the U.S. evaluates the capabilities of 30 providers across three quadrants: Digital Operations, Intelligent Agent Experience and Intelligent CX (AI & Analytics).

The report names Atento, Conduent, Foundever, HGS, Sutherland and Teleperformance as Leaders in all three quadrants. It names Cognizant, Concentrix and Movate as Leaders in two quadrants each. Alorica, Genpact, Tech Mahindra, Wipro and WNS are named as Leaders in one quadrant each.

In addition, IGT Solutions is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Startek is named as a Rising Star in one quadrant.

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 Excellence™ program, the premier quality recognition for the technology and business services industry.

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

About ISG Provider Lens™ Research

The ISG Provider Lens™ 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/20241016520569/en/

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

How are U.S. firms improving customer experience in contact centers?

U.S. firms are improving customer experience by shifting to outsourced contact centers, adopting cloud-based solutions, implementing AI-powered tools like chatbots and virtual assistants, and exploring Generative AI for further enhancements.

What are the benefits of cloud-based contact centers for U.S. companies?

Cloud-based contact centers enable U.S. companies to scale operations up or down in response to events, maintain business continuity, reduce infrastructure costs, and potentially pay for services per use instead of per month, resulting in cost savings.

How is AI being used in U.S. contact centers according to the ISG report?

AI is being used in U.S. contact centers through chatbots, virtual assistants, and automated response systems. These tools streamline processes, enhance customer interactions, analyze customer sentiment, and predict future demands and challenges.

What challenges do U.S. enterprises face in implementing Generative AI in contact centers?

U.S. enterprises face security and privacy concerns when implementing Generative AI in contact centers. Most companies are still in the pilot project and proof of concept stages for this technology.

How has Information Services Group (Nasdaq: III) evaluated contact center service providers?

Information Services Group (Nasdaq: III) has evaluated 30 contact center service providers across three quadrants: Digital Operations, Intelligent Agent Experience, and Intelligent CX (AI & Analytics) in their 2024 ISG Provider Lens™ Contact Center — Customer Experience Services report for the U.S.