Clients rated providers higher in all
performance categories in an uncertain macro environment, ISG Star
of Excellence™ CX Insights Report finds
Enterprise buyers’ ratings of technology and business services
providers rose for a second straight year in 2023, with buyers in
particular giving high marks to providers for AI services,
according to a new report from Information Services Group (ISG)
(Nasdaq: III), a leading global technology research and advisory
firm.
The 2023 Annual ISG Star of Excellence™ CX Insights Report,
which sums up ISG’s quarterly reviews on how enterprises rate their
ITO, BPO and as-a-service outsourcing providers, shows enterprise
customer experience (CX) scores increased from 2022 in all six
pillars covered by ISG’s quarterly CX survey. The largest gains
were in ratings for “Governance and Compliance” and “Execution and
Delivery.” Enterprises gave midsized providers (those with annual
revenues of $1 billion–$3 billion) the highest average CX scores of
any revenue segment.
The average provider’s CX score rose from 80.1 in 2022 to 83.7
in 2023, despite an uncertain macroeconomic environment last year
that saw enterprises reduce discretionary spending while working to
optimize technology investments, ISG says.
“Heightened scrutiny on IT spend and tightening of outsourcing
deals are driving providers to go above and beyond to deliver
better CX to their customers,” said Heiko Henkes, ISG director and
principal analyst in charge of the study. “Providers have stepped
up their performance to meet rising expectations in the areas that
enterprises consider most important.”
AI received a CX score of 78.9, the highest among emerging
technologies, and is becoming a significant part of many
outsourcing engagements, the report says. With both increasing
enterprise use and growing regulation of AI — trends ISG expects to
continue through 2024 — companies are seeking AI-related provider
services in many areas, especially enterprise service management
and compliance, the report says. Enterprises are willing to pay
between 6 percent and 9 percent more per seat for AI features in
software, according to ISG’s research.
In addition to higher CX scores for “Governance and Compliance”
and “Execution and Delivery,” year-on-year improvements were
observed in all other performance categories, including
“Collaboration and Transparency,” “People and Culture Fit,” and
“Business Continuity and Flexibility.” The average score for
“Innovation and Thought Leadership” rose from 78.0 to 80.9 but
remained the lowest of the six pillars.
The report also tracks CX scores for 17 technology areas, with
Application Development and Maintenance (ADM) receiving the highest
score last year, at 81.5, moving up three places from the prior
year. ADM is becoming essential to achieving enterprise cost
optimization and business objectives, especially given the rise of
cloud-native and AI-based applications, ISG says. Scores for
Contact Center — Customer Experience were close behind, at 80.0,
with enterprises increasingly focused on improving CX.
Scores were lowest for Payroll/Benefits Administration (71.6) as
firms grappled with changes in hiring trends, and for supply chain
services (74.5) as organizations still struggle to improve in this
area following the COVID-19 crisis.
The public sector raised CX scores more than any other industry
in 2023, up 9.4 percent, as organizations recognized providers’
ability to comply with policies and regulations, proactively
resolve issues and maintain strong cybersecurity, the report says.
Public sector scores were highest by a wide margin, followed by
manufacturing and financial services. Telecom and media industry
clients slashed their average CX scores by 14.3 percent, but
providers could improve these by better adapting to external
changes and providing agreed-upon resources on time, ISG says.
Survey results by region show providers received lower average
scores from enterprises in the Americas (77.9) than in Europe, the
Middle East and Africa (82.7) or Asia Pacific (78.3). North
American enterprises gave relatively high ratings, especially for
governance and compliance and collaboration and transparency, but
providers have room to improve in Central/South America, especially
in helping clients adapt to emerging technologies, ISG says.
The report reveals details about trends in these and other
areas, including the top technology vendors for CX and
subcategories of what enterprises want from providers.
ISG will discuss the results of this study and preview its 2024
ISG Star of Excellence Research and Awards program during a webinar
tomorrow, Thursday, February 22, at 10 a.m., U.S. Eastern time.
Enterprises and providers are invited to register for the webinar
by visiting this webpage.
The 4Q 2023 ISG Star of Excellence™ CX Insights Report is
available as a free download from this webpage, with more detailed
findings, including by provider, available by contacting ISG.
About ISG Star of Excellence™ CX Insights Research
CX scores reported in the ISG Star of Excellence™ CX Insights
Report represent the weighted average of client satisfaction scores
and importance scores across six dimensions: Execution and
Delivery, Governance and Compliance, Collaboration and
Transparency, Innovation and Thought Leadership, People and
Cultural Fit, and Business Continuity and Flexibility.
Through ISG’s continuous Voice of the Customer survey research,
customers are asked to rate the importance of each of the six
dimensions and then rate their service provider/vendor on each, on
a scale of 1-100. CX scores are also generated across industries,
regions and technology domains and for each service
provider/vendor.
ISG Star of Excellence™ CX Insights scores are an integral part
of the provider assessments offered by ISG Provider Lens™ research,
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 who wish to participate in the ISG Voice of the
Customer survey research can begin the process by visiting this
website. Providers also can nominate their customers to
participate.
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 automation, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240221117804/en/
Press:
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
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