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Contact Centers: Adopt Digital Customer Experience Capabilities for Huge Success, or Else…, Warns Everest Group | Press Release

By | Press Releases

In Customer Experience Management (CXM) market, digital CX will grow 20-25%, traditional contact center outsourcing only 2-3% by 2023.

Contact centers and service providers that can smoothly transition to a next-generation operating model and adopt digital capabilities will witness huge success in the market, while others will face the risk of falling off the radar, according to Everest Group.

The customer experience management (CXM) industry is witnessing significant disruption in service delivery, as buyers are increasing their focus on digital solutions to reduce costs, optimize operations, and improve customer experience (CX). While traditional contact centers primarily rely on voice-based delivery as well as manually intensive tasks to deliver services, an increasing number of investments are being made in building next-generation contact centers to meet growing customer expectations.

Next-generation contact centers can be characterized by integrated data, multi-channel interactions, and the leverage of digital tools such as virtual assistants, robotic process automation (RPA), robotic desktop automation (RDA), and advanced analytics. They also go beyond offering innovation around technology to include other elements such as consulting, design thinking, talent upskilling, and evolving delivery models such as Work-At-Home-Agents (WAHA) to align with the enterprise needs.

Although traditional models of contact center outsourcing constitute 92-94% of the market as of 2018, this segment is expected to grow at only 2-4% over the next few years, whereas the digital CXM segment (6-8%) is expected to grow at a high compound annual growth rate of 20-25% over the same period. By 2021 the digital CXM segment will command a 10-15% share of the overall CXM services market.

These findings and more are discussed in Everest Group’s recently published report, “Customer Experience Management (CXM) Annual Report 2019: Delivering Next-generation Contact Center Services.” The report offers an in-depth discussion of the changing dynamics of the CXM market, including insights on evolving customer needs and the components of a next-generation operating model, emerging solution trends in CXM services, CCO market overview and adoption trends, and the outlook for 2019-2020.

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“Everest Group believes next-generation contact centers are more than a trend: they are the only viable way forward,” said Shirley Hung, vice president at Everest Group. “Enterprises need a growing base of loyal customers, and the way to build that base today is to provide a customer experience that is personalized, seamless, requires less customer effort and offers strong security. Traditional contact centers simply are not well equipped to deliver on this mandate. Next-gen contact centers, in contrast, leverage data, technology and talent to deliver the kind of seamless, omnichannel interactions that can meet evolving customer needs, contribute to business objectives, and keep companies alive and thriving.”

Key findings:

  • The global CCO market grew at 3-4% in 2018 to reach US$83-86 billion, driven by the growing interest among new buyers for outsourcing and emerging growth avenues for service providers around consulting and digital CX solutions
  • Some industries, such as technology and travel & hospitality, witnessed high growth, driven by increased outsourcing by digital-born firms
  • Next-generation contact centers, while in high demand, continue to be only a fraction of the traditional Contact Center Outsourcing (CCO) market, which is still driven by scale, location footprint, and voice-based delivery
  • Digital CXM, which is currently at 6-8% of the CCO market, is expected to grow at a CAGR of 20-25% over the next three years. The adoption of digital CXM components is on the lower side, leaving providers with huge untapped market opportunities
  • Real value for enterprises lies in transitioning from multi-channel to consistent and seamless omnichannel CX delivery, including being available for customers at their channel of choice – both voice and non-voice
  • Heavy investments across the entire spectrum of next-generation technology solutions have led to an increase in the impact that service providers can deliver with these deployments
  • Next-generation recruitment techniques and advanced learning methods are increasingly being used to build skilled talent pools that can enhance operational delivery
  • Delivery from onshore locations is rising as buyers shift their focus towards enhancing services support. Even alternate delivery models, such as the gig economy, are growing as they provide access to skilled talent at lower operational costs

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services and sourcing. We are trusted advisors to senior executives of leading enterprises, providers and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at https://www.everestgrp.com/.

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Cloud Migration Failures and How to Prevent Them | In the News

By | In The News

The use of cloud computing for enterprise apps continues to grow, with organizations putting more of their workloads in public clouds and pursuing multi-cloud strategies to generate lower costs, increased agility and greater flexibility.

“When companies repatriate workloads, it’s often an indication that something has gone wrong,” said Yugal Joshi, vice president of information technology services at Everest Group, a management consulting company based in Dallas.

Read more in TechTarget

SIG Global Executive Summit – October 14-16 | Event

By | Events

Shirley Hung and Michel Janssen will share just-released findings from Everest Group’s sourcing innovation research – undertaken in partnership with SIG and SIGInnova – on how the best-of-the-best enterprises, Pinnacle Enterprises™, are introducing innovations in sourcing, in a session named “Achieving Sourcing Innovation: The Key Practices and Technologies Your Peers Are Using to Get the Best Outcomes”.

In the open discussion segment, hear from leaders from Pinnacle Enterprises share:

  • their innovative procurement and sourcing practices that they are adopting and the capability they have learned are needed for success
  • the innovative practices that are yielding the best results while also managing risk
  • how technology innovations are changing their sourcing practices

When

October 15, 2019

Where

Omni La Costa Resort
2100 Costa Del Mar Road
Carlsbad, CA 92009

Attendees

Shirley Hung, Michel Janssen, Kevin Kapalbo, Jared Jackson

Learn more about the event

Digital Transformation: Who Should Lead? 8 Questions to Ask | In the News

By | In The News

Should that outside hotshot lead your digital transformation work – or an insider who knows more about the culture and customers? Ask these questions to decide this contentious issue.

Ask this first, because it’s absolutely fundamental. “Since there is no universal set of right answers for digital, it is important to understand what the business is trying to achieve,” says Cecilia Edwards, partner at management consultancy and research firm Everest Group. “This will reduce the likelihood of implementing initiatives that have no or the wrong business impact.”

Read more in The Enterprisers Project

HCL Tech-Google Workers Unionisation: Why This Could Spread Further in Us

By | In The News

In a first such instance, close to 80 techies from HCL Tech America earlier this week joined a United Steelworkers union (USW) in the US.

Chirajeet Sengupta, Partner, Everest Group, pointed out that demand for contract workers have been on the rise to bridge the gap in skilled workers availability in areas such AI and ML, in addition to visa regulations. Infosys during their June quarter results accepted that continued dependence on contract workers have put their margins under pressure.

Read more in Money Control

India’s Share of IT, R&D, Business Process Centres Rises in Last Two Years: Everest | In the News

By | In The News

India continues to be by far the most preferred destination in the world of IT, engineering and R&D services delivery.

“Bengaluru continues to grow owing to increasing demand for complex IT and high-end R&D work. Significant availability of entry-level talent pool (85,000-95,000 graduates annually) and highly mature employed talent market continues to position Bengaluru as the leading talent market for global services. High-cost savings potential (more than 75% savings over US & UK), availability of well-developed infrastructure, and strong government support further enhance its value proposition,” said Parul Jain, practice director in Everest Group.

Read more in TOI

Digital Transformation: 11 Emerging Lessons | In the News

By | In The News

Digital transformation fatigue hits many organizations. Refocus your efforts with some new lessons on what’s working and what needs to stop.

Some organizations have a chief digital officer, chief transformation officer, or other head disruptor-in-charge; some don’t. But what unites the most successful efforts is a cross-functional approach. “Successful enterprises leverage centralized and line of business IT, business units, and other corporate functions in digital initiatives,” says Yugal Joshi, vice president at Everest Group, which surveyed 180 CXOs on the topic of digital transformation.

Read more in The Enterprisers Project

Computer Weekly Announces the Most Influential Women in UK Tech 2019 | In the News

By | In The News

The list, which is now in its eighth year, was introduced in 2012 to shine a light on the non-male role models in the technology sector.

#15. Sarah Burnett, executive vice-president and distinguished analyst, Everest Group; chair, BCS Women
Burnett is the executive vice-president and distinguished analyst at Everest Group, where she uses her skills to lead the group on global service delivery automation research and European practice across its global services research areas.

Read more in Computer Weekly

This Diwali, Flipkart and Amazon India Have to Please Buyers, Angry Sellers and the Competition Regulator | In the News

By | In The News

Amazon and Flipkart may have to turn some of their lights out this Diwali.

Over the years, India’s online festive sales have only become bigger and more frequent. Even before Amazon’s Great Indian Festival sale and rival Flipkart’s Big Billion Days sale, between Sept. 29 and Oct. 04, the e-commerce behemoths were already engaged in multiple price wars. While Amazon has hosted 13 sales events so far this year, Flipkart is not far behind at 11. Both had two-day mega sales in July.

“There are many returns of these products which further add to the cost of doing business. Many customers just order because of deep discounting and not because they need something. Then they decide to return it,” explained Yugal Joshi, vice-president at Texas-based consultancy Everest Group. “Moreover, customers’ price point get fixed and post deep discounting days, too, they expect similar pricing which makes an untenable business for the seller.”

Read more in Quartz India

Procurecon HR – September 24-25 | Event

By | Events

ProcureCon HR is the leading conference for Global HR Procurement, Contingent Workforce and Talent Acquisition executives from Europe’s top spending companies. At a time of great uncertainty, growing competition for world-class talent, dependence on contingent workers and demand for innovative HR services, Procurecon HR gathers HR procurement decision makers from Europe’s largest and most innovative companies to answer important questions on optimizing sourcing strategy in the contemporary world of work.

When

September 24-25, 2019

Where

Novotel, Amsterdam City Centre, Amsterdam

Attendees

Julian Herbert, Warren Tsoi, and Nnamdi Ugo will be at the Everest Group booth at the event

Learn more about the event