Everest Group says growth in CXM outsourcing will continue as enterprise seek to maximize customer retention in face of recessionary climate.
DALLAS, Jan. 10, 2023 /PRNewswire-PRWeb/ -- Following pandemic shutdowns in 2020, the global outsourced customer experience management (CXM) market spiked in 2021, with the fastest year-on-year growth (12-14%) in recent history, according to Everest Group. Growth of the CXM outsourcing market, which currently stands at 31% of overall global CXM spend including in-house contact centers, outpaced GDP growth in all economies in 2021 after a decline in 2020.
Everest Group says the CXM outsourcing market will continue to grow, albeit at a more normalized rate (7-9%), despite the uncertainty presented by a looming recession. In fact, the recession will act as an indirect market driver; to compensate for low buying sentiment, enterprises will focus on customer service and retention, thereby spurring continued growth in CXM outsourcing over the next few years.
Additional growth drivers will include the following:
- A considerable shift of contact center operations toward a hybrid delivery model, with greater emphasis on gig and work-at-home (WAH) workers to enhance delivery capabilities
- The increasing use of conversational artificial intelligence (AI) and automation to decrease reliance on full-time equivalent (FTE) employees while delivering better CX outcomes
- A foray of first-time outsourcers into the CXM market, especially driven by the small and midsize business (SMB) segment, which will continue to grow rapidly.
"The future of CXM service delivery will be defined by a combination of locations, technology and delivery models to create unique solutions that are flexible, scalable and tailored, based on each enterprise's requirements," said Shirley Hung, partner at Everest Group. "The service providers who are growing faster than the market average are those who offer end-to-end CXM solutions that include advanced digital tools, front- and back-office services, and advisory and consulting services to provide bespoke solutions tailored to their clients' requirements."
Everest Group also notes interesting geographic dynamics in the CXM market, including:
- Numerous mergers and acquisitions primarily focused on expanding geographic presence.
- Multiple new multilingual hubs emerging in the Eastern European region
- The linguistically diverse ASEAN (Association of Southeast Asian Nations) region being considered for Asian language capabilities
- Africa experiencing increasing demand from customers in the MEA (Middle East and Africa) region to provide quality CXM and from other enterprises who want to diversify their service delivery footprint by shifting work away from India and the Philippines.
These findings and more are detailed in Everest Group's recently published report, "Capturing the Post-pandemic Resurgence: Customer Experience Management (CXM) State of the Market Report 2023." In this report, Everest Group examines the CXM market in the wake of the pandemic, factors affecting market growth, and changes in service delivery models. The report also addresses differentiating factors for service providers, buyer satisfaction performance, key investment themes, major acquisitions, and future trends in the CXM market.
***Download a complimentary abstract of "Capturing the Post-pandemic Resurgence: Customer Experience Management (CXM) State of the Market Report 2023"***
About Everest Group
Everest Group is a leading research firm helping business leaders make confident decisions. We guide clients through today's market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at http://www.everestgrp.com.
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Andrea Riffle, Everest Group, +1 (954) 801-8474, [email protected]
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SOURCE Everest Group
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