Over 70% of all Customer Experience Management (CXM) services are delivered by in-house teams, making this a huge potential market ripe for outsourcing. With our estimates pegging the global market at $325 to $350 billion a year, less than 30% ($89-$91 billion) is currently outsourced. Outsourcing can deliver numerous benefits for enterprises. But before jumping in, there are many planning, strategic, and tactical considerations to understand and address. To learn more, read on.
Driven by COVID-19, outsourcing of CXM grew last year after a long period of remaining stable at about a 25% share of the market as the pandemic disruption led many enterprises to seek additional support to continue servicing their customers when their teams were unavailable or to respond to increased demand.
Another contributing factor to the growth was increased government spending on COVID-19 related services such as tracking and tracing vaccination programs, which were predominantly outsourced operations. Our blog CXM Market’s Dream Run – What’s Driving It And Will It Last? explores this in more detail.
We predict the outsourcing trend will continue to grow as enterprises realize that outsourcing of CXM can deliver the same positive results as in-house teams – helping to remove cost from the business and simply allowing them to focus on their core business by having a third party manage the complexities of large customer-facing operations.
If you are a new or less experienced customer of these services, many factors must be considered to ensure the transition to an outsourced environment goes as smoothly as possible. Here are 10 critical elements to think about:
| Business requirements |
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| Documented processes |
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| Sourcing strategy |
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| Technology strategy |
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| Understand the supplier landscape |
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| Understand the difference between procurement of goods versus services |
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| Clear baseline of cost and performance |
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| Business continuity planning |
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| Stakeholder alignment |
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| Future expansion plans |
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While outsourcing can achieve many transformational business outcomes, know it is not a fit for every organization or in every context. Taking these right first steps and addressing the key issues above, will help set the foundation for a successful solution and prevent potential problems from transpiring at a later date.
To discuss embarking on outsourcing, please contact Sharang Sharma, Practice Director, [email protected]; David Rickard, Vice President, [email protected]; or Shirley Hung, Vice President: [email protected].
Learn how Everest Group helps CX managers deliver greater business value through CXM strategy optimization here.
