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 relied 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 the growing customer expectations. Next-generation contact centers can be characterized by integrated data, multi-channel interactions, and the leverage of digital tools. 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.

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. Thus, there is a huge number of untapped market opportunities in the CXM space, which is attractive to not only the incumbent players, but also to the new providers with differentiated digital CX capabilities. Given these factors, providers that can smoothly transition to a next-generation operating model will witness huge success in the market, while others will face the risk of going off the radar.

Scope of analysis

• More than 3,000 active CCO deals (as of December 2018) tracked annually by Everest Group
• Coverage across 30+ CCO service providers including Alorica, Atento, Capita, CGI, Concentrix, Conduit Global, CSS Corp, EXL, Firstsource, Genpact, HCL, Hexaware, HGS, Infosys, iQor, Knoah Solutions, NTT DATA, Qualfon, Sitel, STARTEK and Aegis, Sutherland Global Services, Sykes, Tech Mahindra, Teleperformance, TELUS International, Transcom, TTEC, VXI, Webhelp, Wipro, and WNS

Content

This report will assist key stakeholders (buyers, service providers, and technology providers) understand the changing dynamics of the CXM market and help them identify the trends and outlook for 2019-2020. In this backdrop, the report provides insights on the evolving customer needs and the components of a next-generation operating model, emerging solution trends in CXM services to meet the evolving CX needs, CCO market overview and adoption trends, and outlook for 2019-2020. Some of the findings are:

• 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
• Industries, such as technology and travel & hospitality, witnessed high growth, driven by increased outsourcing by digital-born firms
• 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. It also includes 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

Membership(s)

Market Vista-Customer Experience Management (CXM) Services, including Contact Center Outsourcing