Service providers’ CX scores climb to 83.7 in 2023, says ISG
CONNECTICUT, UNITED STATES — Customer experience (CX) scores for technology and business services providers increased in 2023, with a notable appreciation for artificial intelligence (AI) services, said management consulting firm Information Services Group (ISG).
In its 2023 Annual ISG Star of Excellence CX Insights report, ISG revealed that the average provider’s CX score saw a significant rise to 83.7 in 2023 from 80.1 in 2022 amid an uncertain macroeconomic climate.
The report — synthesizing ISG’s quarterly reviews on enterprise ratings for their information technology outsourcing (ITO), business process outsourcing (BPO), and as-a-service outsourcing providers — highlighted improvements across all six pillars of ISG’s CX survey.
“Governance and Compliance” and “Execution and Delivery” received the highest ratings, indicating a shift towards more stringent IT spend scrutiny and optimized technology investments.
Midsized providers, with annual revenues between $1 billion and $3 billion, emerged as the top performers in CX scores among various revenue segments.
This year’s focus on AI services, which scored 78.9, the highest among emerging technologies, underscored the growing reliance on AI for enhancing enterprise service management and compliance.
Enterprises are now willing to invest 6% to 9% more per seat for AI features in software, a testament to the technology’s value in today’s business landscape.
“Heightened scrutiny on IT [spending] and tightening of outsourcing deals are driving providers to go above and beyond to deliver better CX to their customers,” said ISG Director and Principal Analyst Heiko Henkes.
“Providers have stepped up their performance to meet rising expectations in the areas that enterprises consider most important.”
Despite economic pressures, providers have excelled in meeting rising enterprise expectations, particularly in critical areas such as collaboration, transparency, and innovation.
The report also noted year-on-year improvements in “People and Culture Fit” and “Business Continuity and Flexibility,” with “Innovation and Thought Leadership” scoring 80.9, despite being the lowest of the six pillars.
Application Development and Maintenance (ADM) led the technology areas with a score of 81.5, highlighting its crucial role in enterprise cost optimization and the adoption of cloud-native and AI-based applications.
The public sector saw the most significant improvement in CX scores, up by 9.4%, as organizations recognized providers’ capabilities in policy compliance, issue resolution, and cybersecurity.
The study’s findings indicate a positive trajectory for provider-customer relationships, driven by advancements in AI and a concerted effort by providers to exceed expectations in a challenging economic environment.
