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Spotlight on Customer Experience Drives Firms to CCaaS

Contact center performance now affects enterprise value, so more companies are embracing cloud-based contact platforms, ISG Provider Lens™ report says

The use of contact-center-as-a-service (CCaaS) platforms is becoming a mainstream enterprise strategy as consumer demands change and customer experience (CX) gains importance in corporate decision-making, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ global Contact Center as a Service report finds that adoption of digital CX services has grown significantly over the last three years, driven in part by the rise of digital transformation, cloud migration and hybrid work modes. At the same time, CX and overall customer satisfaction with enterprise contact channels have become key metrics of enterprise performance, even affecting company valuations.

“Adopting CCaaS is a critical and foundational step within the digital transformation of the contact center,” said Wayne Butterfield, ISG partner, digital solutions. “Contact centers are still under-valued by most organizations, but this is changing. CCaaS is just one of the technology advancements setting the stage for more widespread use of AI across the contact center environment.”

CCaaS has evolved to include a wide range of features in addition to basic voice and text, the report says. These include tools to manage, retain and optimize workforces and embedded technologies such as AI, ML, automation and chatbots.

Many enterprises are turning to automation and the cloud to address a growing number of customer interactions efficiently and with the agility to adapt to changing consumer needs, ISG says. CCaaS enables companies to achieve these goals at low cost and with minimal risk.

AI has become a major driver of new contact center platform capabilities, the report says. It forms the basis of increasingly capable virtual assistants that take automated query resolution to a higher level, while AI-powered analytical tools allow companies to use vast amounts of customer data more intelligently to augment human operators’ capabilities.

“Enterprises have gained a great deal of confidence in the use of AI alongside human operators,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “We expect AI to be integrated into all CCaaS offerings.”

With most industries having adopted social media as a communication channel with customers, advanced social media services have become an essential part of CCaaS, the report says. Most companies already employ content moderation, and breakthroughs in analytics now allow them to measure and predict customer sentiment.

The report also explores other CCaaS trends, including the growing importance of business continuity and an increasing focus on agent experience as a driver of high-quality outcomes.

For more insights into the challenges addressed by CCaaS and advice on how best to use the capabilities it offers, see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ global Contact Center as a Service report evaluates the capabilities of 22 providers in one quadrant: Contact Center as a Service (CCaaS).

The report names 8x8, Amazon Connect, Avaya, Content Guru, Five9, Genesys, NICE CXone, Odigo, Talkdesk and Tata Communications as Leaders in the quadrant.

Customized versions of the report are available from Anywhere365, Tata Communications and TCN.

The 2023 ISG Provider Lens™ global Contact Center as a Service report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is 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 will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

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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