The report with the catchy title European Customer Experience Outsourcing Services Market, 2020, reveals that the European market is mature and but has quirks like demands for specific languages, cultural affinity, and nearshoring.
COVID-19 has adversely affected the industry in 2020 and Frost & Sullivan expects total market revenue to reach €16.23 billion, a 7.5 percent decline.
Outsourcers, display exceptional agility and flexibility when meeting the business continuity challenge. Assuming a reversal of fortune in the next three to four months, Frost & Sullivan expects the market to recover to €20.03 billion by 2024. To stay relevant in the rapidly evolving market, outsourcers must develop new tools to address digitally native customers, cybersecurity challenges, and business continuity as a service.
Frost & Sullivan Information & Communication Technologies Senior Industry Analyst Deepali Sathe said: “By integrating advanced analytics, artificial intelligence, and machine learning, outsourcers transform the customer journey. Offering customized, automated, and self-service solutions, outsourcers have moved beyond cost and labor arbitrage to instead focus on seamless, omni-channel, value-added experiences. Customers have evolved and expect intelligent interactions and immediate responses. True partnerships developing between clients and outsourcers will enhance the agent experience, mitigate complexity, and encourage empathy.”
Information & Communication Technologies Industry Analyst at Frost & Sullivan, Leonardo Sampieri, said: “Sectors such as telecom, banking, financial services, and insurance (BFSI), and travel and hospitality will see the most changes and will need service providers to help them drive a digital transformation in CX. Healthcare is an area of fast growth, and with COVID-19, the vertical is expected to see rapid growth across Europe that significantly affects outsourcers.”
Another area of focus that can help outsourcers gain competitive advantage include Cybersecurity and customer trust. European customers in particular are more concerned about data privacy. To enhance CX, companies need to strike a balance between user friendliness and effectiveness, the report said.
Suppliers will use technology and expertise to enhance CX outcomes with customisation. CX reflects the effectiveness of operational excellence and outsourcers must integrate technologies that enable better management of customer sentiments.
Frost & Sullivan predicts that the industry will focus heavily on partnering and expanding the ecosystem. Thinking beyond products and services to identify other important parameters to differentiate in a rapidly commoditising market will require a flexible and innovative strategy.
Outsourcers that cater to the diverse requirements of specific verticals will enjoy immense growth prospects, as it adds another dimension to the overall value proposition and extends ease of deployment, the report said.