Contact Center-as-a-Service (CCaaS) PEAK Matrix® Assessment 2023

May 31, 2023

Contact Center-as-a-Service (CCaaS) PEAK Matrix® Assessment

The market for Contact Center-as-a-Service (CCaaS) is experiencing rapid growth, driven by the increasing demand for flexible remote work solutions, the need for businesses to provide exceptional customer service, and the scalability required to accommodate fluctuating demand. Everest Group defines CCaaS as a cloud-based offering that encompasses essential capabilities for managing omnichannel customer interactions through capabilities such as automatic call distribution, Interactive Voice Response (IVR) and self-service tools, workforce optimization and scheduling/forecasting, as well as reporting and management insights. CCaaS allows companies to quickly scale their contact center operations without making significant investments in infrastructure and software. Consequently, many businesses are transitioning from traditional on-premise contact center solutions to cloud-based CCaaS solutions as they offer greater flexibility, scalability, and cost-effectiveness. The CCaaS market is highly competitive, with numerous providers that offer solutions with varying degrees of sophistication and pricing models. Additionally, the industry is experiencing consolidation, with larger companies acquiring smaller participants to expand their service portfolio and increase their market share.

Contact Center-as-a-Service (CCaaS) PEAK Matrix® Assessment 2023

What is in this PEAK Matrix® Report

In this report, we assess eight CCaaS providers featured on the Contact Center-as-a-Service (CCaaS) PEAK Matrix® 2023. Each provider profile provides a comprehensive overview of its service focus, key Intellectual Property (IP) / solutions, domain investments, and case studies. The research will help buyers select the right-fit technology provider for their needs, while technology providers will be able to benchmark themselves against the competition.

In this report, we:

Provide Everest Group’s PEAK Matrix® evaluation, a comparative assessment of eight leading CCaaS technology providers
Assess the CCaaS technology provider landscape
List providers’ key strengths and limitations

Scope:

All industries and geographies
Geography: North America
The assessment is based on Everest Group’s annual RFI process for the calendar year 2023, interactions with leading CCaaS technology providers, client reference checks, and an ongoing analysis of the CCaaS market

DOWNLOAD THE CONTACT CENTER-AS-A-SERVICE (CCAAS) PEAK MATRIX® ASSESSMENT 2023

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What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

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Delivering CXM Services from Africa: Who, Where, Why, and How | LinkedIn Live

May 2, 2023

LINKEDIN LIVE

Delivering CXM Services from Africa: Who, Where, Why, and How

May 2, 2023 |

9 a.m. CDT | 10 a.m. EDT | 3 p.m. BST | 7:30 p.m. IST

With a fast-growing talent pool, good language coverage, and an increasingly mature business process outsourcing (BPO) market, Africa is fast emerging💹 as an attractive alternative to India and the Philippines for offshore work.

📢 📢In this LinkedIn Live session, enterprises will learn why Africa has become an ideal option for customer experience management (CXM) services and which providers enterprises can partner with to get started on their CXM journeys in the region. We will also discuss the potential benefits for enterprises, such as access to multiple locations and providers for high-quality service in multiple languages.

What questions will the event address?

✅ Who are the providers in Africa that enterprises can work with?
✅ Where are the upcoming alternatives for India and the Philippines?
✅ Why should enterprises look at Africa as a delivery location for CXM?
✅ How enterprises can benefit from approaching this market from a “sell to” as well as a delivery perspective

David Rickard

Partner | Everest Group

Sharang Sharma

Vice President | Everest Group

Traci Freeman

Investor Engagement & Marketing | BPESA

Register ON LinkedIn

Teleperformance Proposes to Acquire Majorel: Global Titans Continue Their Unstoppable Run in the Customer Experience Management Industry | Blog

April 28, 2023

Teleperformance, a global leader in the Customer Experience Management (CXM) industry, has announced its proposal to acquire Majorel, another large rival in the industry. This move is set to reinforce Teleperformance’s position as a dominant force in the market and expand its reach even further. With both companies known for their excellence in CXM services, this acquisition has the potential to deliver an even greater level of innovation to clients worldwide. Read on for more details on the impact of this deal on the CXM industry.

While there is increasing appreciation for the strategic impact to businesses of delivering great customer experiences, a large part of the market is still managing Customer Experience (CX) as it has always done, which is to drive down costs and focus on operational efficiencies. Consequently, Customer Experience Management (CXM) provider margins tend to be lower than in other Business Process Services (BPS) segments, and it is not surprising that in the current uncertain economic environment, providers are focusing on tried and tested strategies such as consolidation to deliver on growth objectives.

Teleperformance further augments its leadership position by scale

The latest in the wave of mergers and acquisitions (M&A) in the CXM industry is the largest CXM services provider, Teleperformance, announcing its intention to acquire Majorel, another sizable competitor, for a total consideration of €3bn. Subject to regulatory approvals, the combined entity will result in revenues of more than €10.2bn and EBITDA of more than €2.2bn if it closes as expected between Q4 2023 and Q1 2024, resulting in Teleperformance achieving its 2025 revenue goal of €10bn two years in advance. The merged entity will be the largest CXM provider both in terms of revenues and FTEs, with nearly half a million employees worldwide.

With Concentrix’s recent announcement to acquire Webhelp, these two CXM behemoths will be more than twice the size of their next largest competitor, Foundever, which itself resulted from a merger of two significant entities (SYKES and Sitel Group). Given their global reach and ability to cater to almost all regions and languages, they will naturally be in consideration by any global buyer of these services that is looking to consolidate its provider portfolio and work with fewer but more strategic partners.

What this means for the CXM and BPS industry

As we have mentioned in our recent blog, we are seeing the rise of global Titans in the CXM industry. While this might mean less choice in service providers or strategic transformation partners for global buyers, it will also lead to cost synergies, operational efficiencies, and enhanced digital capabilities. Adding more scale allows these providers to make more concerted investments in a space which is already seeing the entry of Big Tech and hyperscalers such as Microsoft and Google into CX technology. A greater focus on innovation by these Titans will result in better products, solutions, and services in the industry.

The global outsourced CX market is a highly fragmented one, with the 10 largest providers holding a total of ~30% share of the $100 billion+ market and hundreds if not thousands of other providers making up the remaining 70%. In addition, our estimates put penetration of this market between 30-35%, indicating significant room for growth in the future. Therefore, smaller providers can continue to thrive if they are successfully able to articulate and deliver upon differentiated value propositions such as offering superior products and services, aligning more attentively to their clients’ needs, or specializing in niche areas, whether that is in a particular industry, region, buyer size, or service line.

Within the broader BPS environment, the combined entity of Teleperformance and Majorel will have a stronger Trust and Safety (T&S) portfolio and will become one of the top three T&S providers (with Accenture and TELUS International) in terms of revenues. This, along with deep digital CX expertise, Teleperformance’s recruitment process outsourcing and finance & accounting services, and Majorel’s vertical BPO solutions in banking, insurance, and retail industries, make the new entity a force to be reckoned with in the BPS world, becoming one of the top three providers by revenues in BPS. However, it will continue to remain a CXM specialist primarily as more than 80% of its revenues will be CXM-oriented, at least for now. It will be interesting to see if the combined entity will accelerate the growth of its non-CXM revenues to become known as a broader-based BPS provider in the future.

What to expect going forward

Recent economic headwinds have provided an excellent opportunity for M&A in this market as valuations are once again becoming attractive for a lot of providers. With an enormous push towards digital CX capabilities, service providers are looking aggressively to plug capability gaps, and firms that can help them achieve these objectives are becoming hot acquisition targets. We expect further M&A activity in the next 12-18 months, both big (scale-focused) and small (capability-focused).

However, it will be a mistake for providers to allow M&A and, subsequently, integration activity to distract them from focusing on how generative AI such as ChatGPT can be applied in the contact center environment. This disruptive technology is already showing great promise and has the potential to level the playing field between big and small providers if leveraged responsibly. Despite believing strongly that there will always be a need for human interaction and involvement within CXM, the contact center of today should be quite different from the contact center of the near future, as early as two years from now.

To discuss global customer experience management topics, contact Shirley Hung [email protected], Sharang Sharma [email protected], or Aishwarya Barjatya [email protected].

You can access our CXM research coverage and also attend our LinkedIn Live session, Delivering CXM Services From Africa: Who, Where, Why, And How to learn why Africa has become an ideal option for global customer experience management.

Concentrix Acquires Webhelp: A Game Changer in the Global Customer Experience Management (CXM) Landscape | Blog

April 6, 2023

The combination of Concentrix and Webhelp will create a global customer experience management (CXM) titan that can significantly shape the industry’s future. Let’s explore the benefits and other implications of this mega deal.

The recent announcement of Concentrix’s planned acquisition of Webhelp in a US$4.8 billion deal is a major milestone in the growing trend of mergers and acquisitions in the CXM industry over recent years.

With an estimated pro forma 2023 annual revenue of US$9.8 billion across multiple businesses, including CXM, trust and safety, and legal services, the combined entity will emerge as a global service powerhouse with the potential to significantly shape the CXM industry.

Key drivers of the acquisition

The strategic benefits of this acquisition include:

Stronger operational presence beyond North America: Webhelp has a strong presence in sales, marketing, and payment services across Europe, Latin America, and Africa. With this acquisition, Concentrix will be able to strengthen its operations beyond North America in these geographies. Concentrix is further set to bolster its extensive operations in the Asia-Pacific region by leveraging Webhelp’s existing operational presence and partnerships with regional CXM providers in China and Japan through joint ventures with Kingwisoft and Telenet, respectively. This will result in the combined entity having a diversified revenue contribution across the Americas, Europe, and Asia Pacific

Enhanced delivery capabilities in Europe, Latin America, and Africa: Webhelp adds more than 25 new countries to Concentrix delivery locations, including Denmark, Greece, Estonia, Finland, Norway, Madagascar, Peru, and South Africa, thus, strengthening Concentrix’s delivery presence in Europe and Latin America, as well as helping it establish an African footprint. This collaboration will establish a robust and well-balanced global footprint, which can attract global enterprises looking to partner with service providers who can offer the right shoring mix to their end customers across geographies

Varied customers: Webhelp’s customer base is primarily situated outside of North America leading to limited client overlap with Concentrix. With this acquisition, Concentrix is set to gain around 1,000 new clients from Webhelp, consisting of over 25 Fortune Global 500 clients, and more than 200 clients from emerging economies. This will significantly increase the combined entity’s client base to approximately 2,000 clients, of which 155 are Fortune Global 500 clients and 320 are from the new economy sector. By expanding and diversifying its client base, Concentrix can increase revenues, broaden service offerings, and gain economies of scale, while its clients also will benefit from access to a wider range of resources and expertise

Operational synergies: Combining Concentrix and Webhelp will enable the sharing and cross-selling of digital capabilities, including Concentrix’s Catalyst platform and ServiceSource’s expertise in the fast growth-technology (FGT) segment, as well as Webhelp’s Lead Factory and consulting firm Gobeyond Partners. This will allow the combined entity to offer clients high-value services, addressing their needs more comprehensively and efficiently. Moreover, the partnership is expected to broaden the global reach of Concentrix Catalyst and accelerate its expansion by leveraging Webhelp’s engineering know-how in Europe and Latin America. Sharing resources also can lead to operational efficiencies, enabling the merged entity to enhance profitability and market competitiveness. Expected cost synergy benefits will be US$75 million in the first year after the closing of the transaction and will reach a minimum of US$120 million (after accounting for investments) by the third year

Expansion of other service lines: Concentrix can expand its trust and safety service lines by utilizing Webhelp’s delivery footprint and in-house solutions, such as Contentus.AI for more efficient moderation, Navigatus for enhancing work quality, and Moderatus for detecting and removing false news and hate speech. In addition, Concentrix can leverage Webhelp’s expertise in legal services, including legal claims management and Know Your Customer (KYC) services, to further expand its Business Process Services (BPS) portfolio

Key considerations

Integration challenges: Varying technology systems and processes, as well as the difficulty of integrating and managing data, can potentially hinder the Webhelp and Concentrix union. Bringing the respective customer service models and training programs into alignment also can pose challenges. Furthermore, integrating human resources and payroll systems, benefits, and compensation programs can be complex and will require careful planning and execution. However, contrary to other recent CXM acquisitions, we do not foresee a significant culture clash challenge between Concentrix and Webhelp

The emergence of a new category of global CXM Titans: In recent years, the CXM market has witnessed a significant trend towards consolidation, with several high-profile mergers such as Sitel Group’s merger with SYKES to form what is now known as Foundever and Comdata Group’s merger with Grupo Konecta. The upcoming collaboration between Concentrix and Webhelp is poised to contribute to this consolidation trend, with the combined entity expected to control a considerable market share of roughly 6-8%. Similar to the super-major formation era of the late 1990s and early 2000s in the oil and gas industry, Concentrix, Foundever, and Teleperformance are poised to form a new category of global CXM Titans that have the potential to dominate the market due to their extensive resources, expertise, and global reach. Their emergence validates the growing appetite for comprehensive CXM solutions and the need for providers who can meet these demands on a large scale

Competition and opportunities for other providers and specialized players: The consolidation of these two forces may create challenges for other CXM players who might struggle to compete with the resources and scale of the merged entity. However, this also could create opportunities for providers to thrive with tailored offerings targeted at specific customer service areas or industry sectors, such as IGT Solutions and ResultsCX with their focused offerings for travel and healthcare, respectively

The announcement of Concentrix’s acquisition of Webhelp has generated a significant buzz in the CXM industry. Certainly, we expect this pending acquisition to fuel more CXM market consolidation, which may potentially limit buyers’ choices for transformation-oriented strategic partnerships.

Despite these concerns, the Concentrix and Webhelp combination creates a formidable CXM force that will likely shape the industry’s trajectory for years to come. Monitoring the impact of this collaboration on the CXM landscape as well as watching other market players respond to the ongoing consolidation trend will be fascinating. Who will be the next global CXM titan to join their ranks?

To discuss global customer experience management topics, contact Shirley Hung [email protected], Sharang Sharma [email protected], or Divya Baweja, [email protected].

And watch our LinkedIn Live event, Delivering CXM Services from Africa: Who, Where, Why, and How, to learn why Africa has become an ideal option for global customer experience management.

ChatGPT Trends – A Bot’s Perspective on How the Promising Technology will Impact BPS | Blog

February 9, 2023

What better way to find out how ChatGPT will impact the Business Process Services (BPS) market than to ask the trained chatbot itself this question? According to its answers, the future looks promising. But obstacles still need to be overcome. Learn about the latest ChatGPT trends in this second part of our series.

Since OpenAI released ChatGPT for public testing in November 2022, ChatGPT has generated a lot of buzz. Based on initial impressions, the technology holds great promise to enhance and revolutionize many industries, including customer experience, healthcare, logistics, banking, and education, among others.

With all the attention, it’s natural to wonder how ChatGPT will impact the BPS market. And how better than to hear it straight from the bot? So, our analyst logged in on a session with ChatGPT and had a very direct and long conversation. Here’s what we learned:

Figure 1A Snippet from a conversation with ChatGPT

ChatGPT’s potential to enhance customer experience is fairly well known. It has shown the promise to improve current conversational Artificial Intelligence (AI) solutions and make them sound more human-like, which can significantly change how these services are delivered.

It is already capable of understanding natural language with high accuracy, and with enough training, it can start with taking on simple tasks at contact centers. ChatGPT also can track customer preferences and provide real-time insights that can unlock new opportunities for enterprises.

Exploring ChatGPT trends beyond experience

We were interested in understanding its impact beyond customer experience in other major areas such as back-office, content moderation, and finance and accounting, so we asked ChatGPT.

Below is a summarized finding of how ChatGPT can revolutionize six key areas, according to the conversation. (And we have no reason to believe it might have been exaggerating, unlike, say, an analyst writing something similar).

Back-office: Can automate back-end processes such as data entry, record keeping, and reporting, freeing up employees for more value-adding work
Content moderation: Can assist with content moderation by automatically detecting and flagging potentially harmful or inappropriate content, improving efficiency and accuracy compared to manual moderation
Human resources: Can automate repetitive tasks such as candidate screening, resume filtering, and scheduling interviews, freeing up HR staff for more value-adding work. It can provide quick and accurate responses to candidate inquiries, improving the overall candidate experience and making the hiring process more efficient. Another use is virtual interviewing, making it easier for HR to conduct interviews with candidates located in different locations
Financial and accounting: Can automate tasks such as invoice processing, expense reporting, and budget tracking, freeing up finance staff for more value-adding work
Supply chain: Can assist with supply chain management by providing real-time visibility into inventory levels, shipment status, and other supply chain data, enabling companies to make data-driven decisions and optimize their supply chain
Procurement: Can automate procurement tasks such as vendor management, purchase order creation, and invoice processing, helping procurement teams work more efficiently and effectively

The answers show the technology can potentially have positive repercussions across major areas within BPS. With such huge potential, ChatGPT is expected to impact talent as well. While demand may decline for low-skill jobs such as data entry and transactional customer service, ChatGPT will require new skills such as AI and data analysis, creating new job opportunities in areas such as conversational AI design and deployment. As enterprises adopt ChatGPT and other AI technologies, developing new skills and staying up-to-date with industry trends and advancements will become increasingly important for employees.

While the technology is certainly promising, several factors must be considered for successful implementation, including ethical and legal considerations (such as data privacy and algorithmic bias), integration with existing systems, quality of training data, human oversight, and ongoing development and improvement.

ChatGPT has the potential to significantly impact various areas within BPS. While challenges exist, careful planning and considering factors such as data privacy and ethical implications can lead to successful implementation and ongoing improvement. With careful investments, planning, and further technological advancement, ChatGPT can reach its full potential before too long.

For the first part in our series, see ChatGPT – Can BFSI Benefit from an Intelligent Conversation Friend in the Long Term? To discuss ChatGPT trends, please reach out to Sharang Sharma.

CXM Outsourcing Providers Can Thrive and Grow in the Upcoming Recession: Here’s How

January 16, 2023

The looming recession offers opportunities for forward-looking Customer Experience Management (CXM) outsourcing providers to emerge stronger. To learn five strategies that can help providers get ready for an economic downturn and win in the long term, read on.

With spiking interest rates across major economies, yield curve inversion in the US, and workforce layoffs by several tech giants, it is largely accepted that the next global recession is imminent (if not already here). A global slowdown may force enterprises to review new or large investments, expansions, or CXM sourcing decisions, directly impacting the CXM outsourcing industry.

While coping with the challenging environment is the immediate priority for third-party CXM providers, it also presents opportunities for proactive providers to emerge from these uncertain times stronger and chart a path for long-term success.

Here are some ways a recession could affect the industry:

CXM outsourcing is expected to endure: Historical data suggests that the demand for Business Process Services (BPS) outsourcing remains resilient during an economic downturn as shown below:

Source: Everest Group

In a global slowdown, enterprises look for short-term cost wins and quick and tangible benefits from their investments. The variability in cost structures outsourcing offers helps enterprises free their company’s resources, lowers fixed costs, and makes enterprises more flexible and eventually more competitive. This effect can be seen in quarterly releases where many leading CXM providers have raised their most recent like-for-like revenue growth guidance percentage

Essential goods and service industries can act as a safe harbor: According to an Everest Group analysis of the historical correlation between an economic downturn and industry growth, the sectors of Fast-Growth Technology (FGT), travel and hospitality, manufacturing, and luxury retail typically have a higher risk of growth slowdown due to recessions. Healthcare, utilities, consumer packaged goods, and business and financial services (BFS) verticals are less risky and may offer a safety net

Contract renewals may get tough: Enterprises, especially those impacted by the downturn, tend to focus on extracting maximum value at lower prices. To achieve cost efficiencies, enterprises may look for a no-frills approach to CXM outsourcing and remove non-essential components from deals, including value-added services and upsell/cross-sell services – resulting in a decline in the Total Contract Value (TCV)

An enhanced focus on digital CX can counteract the effects: During a global slowdown, focusing on superior CX and customer retention becomes imperative while also reducing or keeping operational expenditure stagnant. Third-party service providers with higher technical capabilities can sort customer queries and resolve simple queries with self-serve or other cost-effective channels, reducing voice volumes and operational overheads

Five strategies for CXM providers to navigate a potential recession

A recession can offer opportunities for well-prepared CXM providers to emerge stronger and triumphant. Service providers need to seize the moment and focus on developing strategies that will provide them with short- and long-term gains.

The following strategies can help providers mobilize for a recession:

Adopt a digital-first value proposition: Understand that cost reduction while maintaining CX quality is vital for enterprises during an economic downturn. Digital CXM solutions drive cost savings by reducing the cost of operations and service, and support through process optimization, automation, encouraging self-service, and enabling efficient workforce management. Service providers with the capability to manage simple queries leveraging digital technologies such as automation, agent-assist solutions, and conversational Artificial Intelligence (AI) can offer better pricing, helping their clients win new contracts, as well as more easily extend and renew existing ones

Demonstrate operational flexibility: In economic uncertainty, anticipating operational volumes over the coming months is extremely difficult for enterprises. Service providers should focus on adopting flexing staffing models to quickly ramp their operations up and down based on demand, helping enterprises reduce fixed costs and mitigate operational risk

Take a proactive customer approach: Capitalizing on every opportunity for additional revenue becomes even more important during unpredictable economic times. Enterprises should look to partner with third-party providers who actively monitor customer journeys, can identify customer pain points, and offer self-service solutions for addressing low-complexity queries, reducing inbound issues and support tickets. B2B enterprises should explore partnerships with service providers having defined roles, such as Customer Success Managers (CSMs) who are focused on identifying customer preferences and demand patterns to identify the best-fit opportunities to upsell or cross-sell to end-customers

Avoid being pressured into bad deals: As the economic cycle enters a downturn, competition over a potentially smaller pie will intensify and can lead to declining prices. Service providers must be financially prudent and avoid pursuing significantly margin dilutive deals. Further, they need to relook at their pricing models and optimize their strategy based on their risk appetite

Diversify into recession-proof industries: Service providers with a focus on high recession-prone sectors such as travel and hospitality, luxury retail, or debt-fueled start-ups should look to diversify their portfolio and target verticals where the demand for customer experience management is expected to pick up or at least have the lowest impact during the recession. For instance, payment collection in the utility vertical generally experiences increased demand during recessionary times. While entering new verticals is not an easy task, service providers should identify synergies between their current portfolio and targeted industries to develop their market-entry strategies accordingly

A recession in the next few months appears to be an inescapable reality. Regardless, service providers must be well prepared for continued economic uncertainty. While some providers may need to aggressively transform costs and offerings, others can diversify their portfolios and develop flexible offerings for the future. Providers who prepare now and take appropriate steps will not only navigate through difficult business conditions but also emerge stronger than the competition when conditions improve.

This is the second blog in our latest CXM blog series. To learn about CXM strategy, read the first blog, How a Robust CXM Outsourcing Strategy Can Help Enterprises Navigate the Economic Downturn.

To discuss CXM outsourcing opportunities, contact Shirley Hung, David Rickard, Sharang Sharma, or Divya Baweja.

How a Robust CXM Outsourcing Strategy Can Help Enterprises Navigate the Economic Downturn | Blog

December 9, 2022

Superior customer experience management (CXM) is even more vital in tough economic times when enterprises want to retrench. But through strategic CXM outsourcing, organizations can generate significant business value now and emerge stronger when conditions improve.

Geopolitical tensions causing supply-side disruptions, the highest inflation numbers since the 1980s, and rising interest rates creating tremendous inflationary pressure on Gross Domestic Product (GDP) growth have put many of the world’s largest economies on the brink of recession.

A recession would significantly hinder investments by enterprises in many industries in CX initiatives. But by partnering with outsourcing providers, enterprises can navigate these difficult times and come out ahead of competitors. Let’s explore how.

Importance of enterprises’ investments in CX during an economic downturn

During recessions, consumer sentiment and confidence drastically fall, making it even more crucial for enterprises to deliver superior customer experiences. Continuing to invest in CX can be worth it for these key reasons:

Customer retention is cheaper than customer acquisition: Failing to maintain good customer service during a crisis can reduce customer confidence, severely impacting brand trust. Superior customer experience is a must-have to retain customers and enhance their lifetime value. This becomes even more important during recessions when gaining new customers is more difficult. In uncertain times, people double down on brands they trust rather than risk spending on unknown products that may disappoint them
Experience management is necessary to understand customers’ changing needs during a crisis: Customer expectations change in a down economy. Understanding the effects of fast-eroding customer confidence and the impact of emotions on customer relationships is crucial to addressing changing customer wants and needs. This shift also represents an opportunity for enterprises to gain a competitive advantage by addressing changing customer requirements
Superior CX helps organizations avoid price wars: Consumers are even more price sensitive during recessions. By delivering superior CX, an organization can stand out without having to cut prices to compete

CXM outsourcing is a viable option during an economic downturn

In this challenging environment, enterprises’ immediate goals are to reduce costs, streamline operations, and achieve quick and tangible benefits from all their investments.

A strategic third-party service provider can help organizations achieve these objectives, enabling them to better manage the downturn and accelerate their recovery. Providers can deliver the following benefits:

Cost effectiveness: During recessionary times, demand for major enterprises’ goods and services takes a hit, affecting top lines, while fixed expenses remain stagnant. Through CXM outsourcing, organizations can convert these fixed expenses into more variable costs representing huge cost savings for many organizations. Selective outsourcing is one of the many effective strategies to control a company’s budget without compromising work quality
Flexibility in managing resources: A global slowdown can force enterprises to reduce hiring, freeze salaries, or reduce their workforce. CXM outsourcing offers the flexibility to ramp resources up and down depending on need without having to lay off employees and hurt overall organizational morale
Enhanced efficiency: Third-party CXM providers offer extensive pooled experiences, knowledge of existing and upcoming technologies, and awareness of best practices in the marketplace. These teams of experts can provide valuable insights to guide an organization’s CXM strategy and maximize efficiency
Providing the necessary digital push: Investing in internal digital initiatives in uncertain economic times becomes difficult – even when long-term benefits are clear. Leveraging a third-party provider to support digital CX initiatives in a strategic partnership-led model can allow enterprises to accelerate their digital road maps while avoiding upfront costs through innovative pricing models

To thrive with a looming recession and emerge on top when economic conditions improve, enterprises need to look at their business strategies now and evaluate the potential opportunities to outsource all or part of their customer experience management services.

Enterprises should begin by identifying key areas that could be outsourced, such as lead generation, payment collections, and technical support. As they achieve success, organizations can then expand contracts – striving to outsource their end-to-end CX services while strategically engaging with service providers to generate significant business value.

Read the second blog in this series for further insights on the CXM outsourcing market, CXM Outsourcing Providers Can Thrive and Grow in the Upcoming Recession: Here’s How.

To discuss CXM outsourcing opportunities, contact Shirley Hung, David Rickard, Sharang Sharma, and Divya Baweja.

Don’t miss our webinar, Key Issues for 2023: Rise Above Economic Uncertainty and Succeed, to hear major concerns, expectations, and key trends expected to amplify in 2023.

Who is Leading Customer Experience Management (CXM) Services in Europe? | LinkedIn Live

September 29, 2022

LINKEDIN LIVE

Who is Leading Customer Experience Management (CXM) Services in Europe?

View the event on LinkedIn, which was delivered live on Thursday, September 29, 2022.

📢The Customer Experience Management (CXM) market in EMEA is booming due to increased demand for outsourcing, as enterprises look to improve the customer experience, balance risk, and save money💲. With leading-edge capabilities like analytics, robotic process automation (RPA), and chatbots combined with traditional customer service skills, service providers are enabling enterprises to enhance their customer experience delivery significantly.

Join this LinkedIn Live session as our experts discuss the results of our recently completed PEAK Matrix® assessment showcasing our latest CXM research in the EMEA region🌏. We’ll explore the size of the market, key verticals, and which service providers are leading the CXM pack, as well as their standout capabilities.

Mark Wootton

Former Snr Dir Procurement & GM for Contact Center Outsourcing

Microsoft

Author: SharangSharma