Enterprises Rate Outsourcing Providers Higher, Citing Improved Execution and Delivery, ISG Study Shows
Q1 scores from clients in most industries have risen since last year, signaling better
customer experience,
The
Cost optimization emerged as a major focus across IT contracts, while enterprises rated the importance of “Innovation and Thought Leadership” lower by 4 percent.
“Enterprises in all industries are looking for providers that carry out projects and deliver support as promised under often rapidly changing conditions,” said
Both CX and importance scores for “Governance and Compliance” declined, the report said, attributing the drop to increasing efforts among providers to comply with changing AI regulations worldwide. Such laws can create uncertainty when implementing AI-based changes in enterprise applications and are likely to cause fluctuations in CX for the foreseeable future.
In addition to overall CX scores, the first-quarter report focuses on CX scores by industries. The second-quarter report will highlight scores by technology domain, and the third-quarter report on scores by geographic region. The fourth-quarter report will provide an annual analysis.
CX Scores by Industry
CX scores varied significantly across industries. Power and utilities enterprises gave the highest average CX score, at 83.8, recognizing providers for their ability to maintain cybersecurity and comply with regulations. Across all six pillars, power and utilities clients said their CX exceeded expectations.
Scores by business services companies rose most steeply from a year ago, up 20 percent, the report says. Companies in this vertical gave especially high scores for governance and compliance, defying the overall downward trend of scores in this area. Retail enterprises raised their ratings of providers by 18 percent, emphasizing collaboration and transparency and execution and delivery, in line with overall trends.
Oil and gas companies gave the lowest average score, at 67.9, rating CX across all pillars as needing improvement. CX scores in the public sector declined the most, falling by 17 percent.
Business services and power and utilities were the only industries that recognized providers as exceeding expectations across most or all CX pillars. In other industries, scores across most pillars showed CX met expectations, and in other cases needed improvement.
The report also examines other findings by industry, including comparisons across regions and provider types for sets of related industries, such as chemicals, oil and gas and power and utilities.
CX Star Performers
Providers that earn the highest CX score for each service area covered by ISG Provider Lens™ research in a given quarter are named an ISG CX Star Performer. For the first quarter, the CX Star Performers were Accenture (Chemicals Industry), Persistent Systems (Digital Engineering), HCLTech (Mainframes), Bechtle (Microsoft), PwC (Procurement), Hexaware (Salesforce), Infosys (SAP) and
About
CX scores reported in the
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.
The 1Q 2024
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
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