This Location Watch report draws on insights from Ryan Strategic Advisory’s May 2025 CX Technology and Global Services Survey (Peter Ryan, 2025) and ArvatoConnect’s Onshore-Offshore: Why the CX Value Equation is Changing (James Towner, 2025). As well as CCP’s relationship with scores of UK outsourcing decision makers and over 240 global BPOs.

The Rise of Offshoring

Since the 1990s, offshoring has become a dominant trend in business process outsourcing. Companies initially turned to India for its low labour costs, English proficiency, and large talent pool. In the 2000s, India was joined by the Philippines as another low-cost hub, particularly suitable for customer service and voice-based operations, leveraging its Western (especially US) cultural alignment. More recently, South Africa has gained attention for its quality, favourable time zones, and relatively lower cost base compared with Europe, providing a viable alternative for UK and European clients.

Yet, despite the global rise of offshore destinations, the UK has maintained its position as a key outsourcing market, valued not for cost alone but for quality, governance, and operational reliability. Its mature infrastructure, strong compliance standards, and professional capability continue to make the UK a premium outsourcing environment, where strategic partnerships prioritise service excellence and trust over purely economic considerations.

Value-Driven Outsourcing Partnerships

In 2025, UK enterprises show a clear preference for value-driven outsourcing partnerships that combine advanced technology capabilities with proven operational excellence. Ryan Strategic Advisory’s May 2025 CX Technology and Global Services survey found that AI proficiency, know-the-customer analytics, and competitive pricing are now the top three competitive differentiators for BPO providers. UK buyers emphasised the importance of strong client references and sector-specific expertise, underscoring the country’s preference for relationship-based, high-governance engagements.

Budget Stagnation and Operational Challenges

A notable trend emerging in the UK market is budgetary stagnation. Over 60% of UK CX leaders indicated that their 2025 budgets will remain flat or decline. This is accompanied by concerns over agent attrition and declining service levels, particularly in voice and digital delivery channels. As a result, many UK enterprises are reassessing delivery models, prioritising investment in AI, automation, and analytics to improve productivity without sacrificing quality. The consequence is a heightened focus on “cost-neutral transformation”, shifting spend from headcount to enabling technologies without increasing overall CX budgets.

Research also highlights that poor AI rollouts can alienate agents: 26% of UK contact centre staff are considering leaving due to unclear AI integration strategies, emphasising the need for transparent change management and training (ArvatoConnect, 2025, Impact of AI on Agents).

Onshoring and Reshoring Trends

While offshoring continues to feature in many delivery strategies, particularly to India, the Philippines, South Africa and Egypt, the latest research indicates that some UK buyers are developing a renewed focus on onshore delivery. ArvatoConnect’s 2025 findings report that:
• 73% of UK brands would choose to onshore CX if cost were not a factor
• 34% are actively planning to reshore services that were previously relocated overseas within the next year.

Key drivers behind this transition include:
• Improved staff retention (31%) and access to local talent and cultural familiarity (26%)
• Customer preference for localised support (26%) and better service quality (21%)
• Simpler management structures, regulatory confidence, and access to advanced technologies (25%)

Correctly planned and executed, onshoring is increasingly seen as a future-proof strategy rather than nostalgia. Proximity improves employee engagement, cultural alignment, customer trust, and ensures tighter compliance control, especially for highly regulated industries.

AI, Automation, and Cost Parity

This rebalancing reflects a shift from a cost-driven model to one focused on resilience, agility, and customer intimacy. AI and automation are now reducing the cost of UK-based service delivery by up to 30%, narrowing the traditional economic advantage of offshore operations:
• AI-powered digital agents in the UK: £16 per hour
• Offshore human agents: £15–£17 per hour (depending on which location)
This near-parity redefines the value equation for outsourcing decisions.

Strategic Insights from ArvatoConnect

As ArvatoConnect’s Chief Growth Officer, James Towner, notes:
“Offshoring’s economic promise is fading. Today’s smartest brands are strategically resetting and planning to reshore customer experience for cultural alignment, talent retention, customer preference, and tech-driven agility.”

The emerging model blends 70% digital/AI interactions with 30% human advisors, focusing human talent on empathy, compliance, and complex issue resolution.

Hybrid and Onshore Investments

Ryan Strategic Advisory’s global survey observed limited enthusiasm for expanding offshore capacity among UK enterprises. Instead, organisations are investing in hybrid and onshore models, leveraging automation and analytics to enhance efficiency.

• BPOs are re-emphasising UK delivery centres in cities such as Manchester, Glasgow, and Newcastle
• Investments are going into next-generation CX hubs integrating AI, cloud contact platforms, and multilingual service delivery

And as ArvatoConnects research suggests, providers are piloting AI-enabled ‘micro-hubs’ that balance cost efficiency with high-quality onshore delivery, while maintaining compliance and engaging the local workforce. Of course, the most innovative offshore BPOs are just as focused on automation and AI-driven investment as their UK peers, but technology may be serving to ‘level the playing field’”

Conclusion: The UK’s Resilient Outsourcing Ecosystem

The UK’s BPO and onshoring landscape combines technological sophistication, regulatory stability, and deep sectoral expertise, creating a solid foundation for high-value service delivery.

As brands continue to prioritise data protection, cultural coherence, and high-quality service, the UK’s position as both an outsourcing and reshoring leader is set to strengthen through 2026 and beyond. In the mid-term, the integration of automation, AI support for agents, and reductions in volumes and handling times will provide an opportunity to bring more operations closer to home. This positions the UK not just as a premium delivery location, but as a cost-efficient, technology-enabled alternative to traditional offshore destinations.

This Location Watch was prepared with valuable contributions from Temo Magradze, Founding Partner of Evolvexe BPO, as well as Davit Tavlalashvili, Head of the Investment Department, and Ketevan Kanashvili, Senior Investment Relations Manager at Enterprise Georgia. It also draws on research and insights from Ryan Strategic Advisory, specifically the report “2025 CX Technology and Global Services Survey”. Their perspectives on the evolution of Georgia’s outsourcing industry are especially insightful in highlighting why the country is gaining attention from UK, EU and North American companies as a nearshore and offshore delivery hub.

Georgia is rapidly gaining recognition as a promising BPO destination, thanks to its modern infrastructure, strategic government support, and a clear ambition to grow within the global outsourcing ecosystem. The recent BPO Leaders Summit 2025 in Tbilisi, hosted by Enterprise Georgia and Ryan Strategic Advisory, brought together industry experts, investors and government officials who confirmed the country’s strong potential.

1. Outsourcing Popularity & Market Positioning

As Temo Magradze emphasises, Georgia’s outsourcing industry has grown significantly in recent years. Its appeal lies in affordability, a highly skilled workforce, and a government eager to attract investment. Positioned at the crossroads of Europe and Asia, Georgia combines geographic advantage with a dynamic, pro-business climate, making it an increasingly popular hub for European operations.

According to the Ryan Strategic Advisory – 2025 CX Technology and Global Services Survey (see screenshot), Georgia scores 2.8, placing it slightly below mid-tier in offshore favorability. Yet, several countries ranked lower continue to be regarded as more mature outsourcing destinations due to their established ecosystems and long-standing track records:

• Turkey (2.6) – Longstanding BPO hub with strong multilingual capabilities, particularly in European market support.
• Colombia (2.7) – A leading nearshore delivery market for North America, well known for Spanish-English bilingual services.
• Nigeria (2.7) – Growing rapidly in scale with an established IT-enabled services sector and a deep labor pool.
• Slovenia (2.7) and Bulgaria (2.7) – Both EU member states with recognized nearshore outsourcing reputations, especially in IT, finance, and multilingual service delivery.

Although these markets rank lower than Georgia in the 2025 survey, they are considered more mature thanks to their larger delivery ecosystems, deeper outsourcing experience, and stronger global visibility. The fact that Georgia now scores ahead of such established players underlines its growing credibility and demonstrates how it is winning favorable attention against locations traditionally chosen for offshore and nearshore outsourcing.

2. Cost Competitiveness & Commercial Advantage

Labour and operational costs in Georgia are 40–50% lower than in established Central and Eastern European hubs such as Poland. Average salaries for customer service roles remain in the £456–£608 range, while programmers earn around £1,140 monthly.

One of Georgia’s strongest incentives is its International Company Status, which grants significant tax advantages, including reduced corporate tax rates. Coupled with government-backed grants and subsidies, this positions Georgia as one of the most cost-efficient outsourcing environments in the region.

3. Workforce, Language Skills & Talent Pool

Georgia boasts a multilingual workforce fluent in English, German, Russian and other European languages. Deloitte research estimates over 500,000 multilingual professionals across major cities. The most common roles include customer support, IT helpdesks, finance and accounting, and software development.

Universities and vocational institutes actively integrate English and technical training. Georgia’s education system, including institutions such as Kutaisi International University (developed with Germany’s Technical University of Munich), is producing a steady pipeline of outsourcing-ready professionals, many of whom are multilingual and STEM-focused.

4. Time Zone, Accessibility & Nearshoring Appeal

Situated in the UTC+4 time zone, Georgia overlaps conveniently with European working hours, while also complementing North American operations by enabling round-the-clock coverage.

Infrastructure for travel and remote collaboration is strong: Tbilisi, Kutaisi and Batumi airports all provide direct flights to key European hubs. This accessibility allows easy site visits and integration with international teams.

5. Infrastructure & BPO Ecosystem

Georgia has invested heavily in digital infrastructure, with 97% broadband coverage and widespread 4G/5G access. Tbilisi remains the primary outsourcing hub, but as Temo highlighted to me, there is rapid growth of secondary cities. For example, Evolvexe recently launched a major tech support project with ASUS from Kutaisi, servicing Germany, Switzerland and Austria. Batumi is also attracting investment and fast becoming a secondary BPO location.

6. Government Support & Incentives

The government, through Enterprise Georgia, plays a pivotal role in supporting BPO expansion. Simplified business registration (often completed in a single day), tax incentives, and subsidies for training make it easier for foreign companies to establish operations. While GITA focuses on supporting IT infrastructure and the ICT Association concentrates on IT-related initiatives rather than BPO specifically, these organisations contribute to the broader tech ecosystem that benefits the sector.

Industry associations, such as the ICT Association, also provide a strong bridge between policy-makers and BPO operators, ensuring that the sector’s needs are addressed. Tavlalashvili and Kanashvili stress that this alignment of public and private stakeholders has been critical to the sector’s momentum.

7. Industry Success Stories

Georgia is already home to a mix of international and local players. Companies such as Making Science Sweeft (software development) and Evolvexe Outsourcing (customer support and tech services) demonstrate the ability of Georgian firms to deliver value across Europe and North America. Majorel, Concentrix, EPAM Systems and Viber have also scaled their operations in Georgia, validating the country’s growing importance on the global outsourcing map.

8. Cultural Fit & Service Excellence

Georgians are often described as the “first Europeans”, with a cultural heritage rooted in hospitality, loyalty and respect for education. This translates into a natural customer-service orientation, where tone, empathy and relationship-building come naturally. This cultural foundation gives Georgian agents an edge in handling sensitive, customer-facing interactions with empathy and professionalism.

9. Innovation, Growth & Future Trends

Georgia is moving beyond traditional call centres into higher-value areas such as software development, fintech, AI-enabled services and digital operations. With IT exports surpassing $1 billion in 2024, the country is positioning itself as not only a cost-effective outsourcing hub but also a source of innovation and digital transformation expertise.

Looking ahead, Temo Magradze predicts that in the next three to five years, Georgia will transition from being primarily a low-cost option to a recognised hub for quality-driven, technology-enabled outsourcing, while still maintaining a commercial edge over EU and US markets.

Final Thoughts

Georgia is establishing itself as one of the most dynamic emerging BPO destinations in Europe. Its multilingual workforce, strong government backing, cost advantages and expanding digital ecosystem make it an attractive nearshore and offshore option for companies across the UK, EU and North America.

As Magradze, Tavlalashvili and Kanashvili each highlight, the country’s unique blend of hospitality-driven service culture and tech-driven innovation gives Georgia a competitive edge. While the sector is still developing compared with more mature hubs, Georgia’s momentum is undeniable, positioning it as a location to watch very closely in the years ahead.

Want to find out more or meet vetted providers in Georgia? Drop us a line, we’re happy to help you explore your options.

In an article published in the run up to Christmas 2024, I discussed the growing tendency in many organisations of the traditional Christmas peak starting to diminish, due to a variety of factors. Musing on the question of whether we had “…passed peak peak” (see what I did, there?) I wondered whether a reduction in the scale of ‘peak seasons’ was being paralleled by a growth in other sorts of both structural and spontaneous increases in contacts.

I was reminded of this article – and the discussions with colleagues and partners that inspired it – when I came across what was a new term to me, last week. The phrase is ‘perma-peak’ – the concept of a long-running or perpetual series of periods of high contact demand.

If the old, usually Christmas-related, peak season was the product of a society-wide, predictable (but hard to handle!) patterns of behaviour, then a perma-peak reflects a very different world. One in which both consumers and brands exhibit or can leverage greater personalisation, but in which demand patterns can spread and grow very rapidly:

1. Brands now have the ability to test and flex proposition and pricing, with instantaneous digital communication to customers and prospects
2. Social network effects can massively amplify the features and virtues of an offer or product – be that from an ill-prepared start-up or a settled, established big player. And, of course, negative aspects or faults can also be shared and multiplied, resulting in a flood of questions, complaints or claims

Pattern non-recognition

Despite advances in analytics automation and machine learning / AI, understanding and responding to demand changes in real time remains difficult and rare. Contact centres have always been operationally flexible and able to display great agility, but this is typically still a manual, even instinctive, response.

When insights are predominantly based on pattern recognition, increasing unpredictability makes operational flexibility a consistent challenge.

Likewise, agent assist and self-service tools and guidance will largely be optimised on the basis of prior experience. Unexpected demand spikes might be driven by either new query types and failure demand triggers, or factors in a novel combination.

Planning for the unplannable

In traditionally ‘peaky’ business sectors like retail, peak planning is an intrinsic part of how businesses are run. If you have a Christmas peak then thinking about how to handle it the following year typically starts in January, before the backlog of post-Christmas complex queries and complaints has even gone! Planning for the unpredictable is a different challenge.

So, if we really are entering an era of perma-peaks, will contract centre operations find themselves back in the era of watching service level charts drop precipitously whilst wondering what on earth is going on?

Not necessarily.

Perma-peaks need perma-flex

Just because tried and tested techniques are strained or start to fail, doesn’t mean that they can’t be revisited, adapted and fine-tuned.

• Workforce Management may become more orientated around rapidly identifying the different characteristics of peaks and corralling real-time shift flexing – and less about aligning scheduled staffing to forecast demand
• Your attempts to match staffing to demand may be less focused on seasonal efforts with shift banking and the use of temporary or fixed-term contract workers, but instead looking at incentivising intra-day shift flexibility or the peak use of a ‘gig’ model, using either in-house or outsourced workers
• Customer guidance, contact steering and self-service options will need to be able to be changed and weighted immediately in the light of peaks or troughs in demand. Root causes of demand spikes need to be identified and addressed – including restricting the promotion of or access to certain contact channels for limited periods, if required
• ‘Unforced errors’ by which organisations inadvertently trigger customer contact need to be avoided. Experience shows that the best way of doing this is through ensuring the contact centre has ‘a seat at the table’ when initiatives and campaigns are being designed

Whether you think that your next peak could be with you at any moment – or you’re confident that it will kick in from the 2nd week of October, just like every year – how to do you anticipate, plan and prepare?

Let us know; we’d love to share experiences and ideas.

1. Call Pickup Rate – Low pickup rates may indicate poor dialling strategies or incorrect customer data. Are managers addressing these issues to improve connection rates?
2. Average Call Duration – Longer calls may suggest engagement or inefficiencies. Do managers have the available insight to help distinguish between productive interactions and wasted time?
3. Average Handling Time (AHT) – Balancing efficiency with quality is crucial. Are managers optimising processes to reduce delays without compromising service?
4. Answering Machine Detection Rate – High voicemail rates waste agent time. Are contact centres adjusting their approach to minimise this?
5. Rejection Rate – A high volume of unanswered calls may point to poor targeting or dialling strategies. Are managers refining their approach based on this data?
6. Agent Wait Time Between Calls – Excessive downtime signals inefficiency. Are workflows optimised to keep agents engaged and productive?
7. Conversion Rate – Success is measured by call outcomes. Are managers analysing why some calls convert while others fail, and adjusting strategies accordingly?
8. Occupancy Rate – Are agents being overworked, leading to burnout, or underutilised, resulting in wasted resources? Do managers have the right data and leadership skills to balance their team members’ workloads effectively?
9. Data Accuracy – Poor data leads to inefficiencies and failed connections. Are managers ensuring databases remain up to date?
10. Right Party Contact Rate – If agents aren’t reaching the intended recipients, performance suffers. Are managers taking steps to improve contact accuracy?
11. Customer Satisfaction Score (CSAT) – A positive customer experience is essential. Are managers prioritising training to enhance service quality?

• Lack of real-time performance insights.
• Insufficient training for managers to interpret and act on KPI trends.
• Inefficient processes that fail to align with data-driven improvements.
• Gaps in technology preventing optimal call routing and workflow automation.

In today’s outsourcing landscape, success depends on much more than cost savings and process efficiency.

On 25^th February 2025, Neville Doughty and Phil Kitchen from the Customer Contact Panel hosted a webinar with Joe Hill-Wilson, CEO and Co-Founder of Learn Amp and Martin Hill-Wilson, Owner of Brainfood Consulting, to discuss Sustainable Operating Models in Outsourcing. One of the most important takeaways from the discussion on sustainable operating models is that Learning and Development (L&D) must be embedded into the core of every outsourcing strategy. Without continuous learning, sustainability simply isn’t possible.

Why Learning and Development is a Sustainability Driver

In outsourcing environments, teams often face rapid change, evolving client expectations, and shifting technologies. This is reflected in the data – 92% of organisations are facing high or very high risk of top talent leaving in the next year (Brandon Hall Group, HCM Outlook, 2024). Without a structured and ongoing approach to skills development, outsourced teams can struggle to keep pace, leading to inconsistent quality, reduced productivity, and higher turnover . During the webinar, 82% of attendees reported that current procurement practice restricts the value they can bring to their clients.

The key takeaway? Organisations that embed L&D into their operating models create more resilient, adaptable, and future-ready outsourcing workforces.

Challenges in Sustainable Learning for Outsourced Teams

The panel discussed the various challenges companies face when it comes to embedding learning into outsourced operations:

• Geographical and Cultural Gaps: How can we create a unified learning experience for teams spread across different countries, cultures, and time zones?
• Engagement and Adoption: With high attrition rates common in outsourced environments, how do we motivate teams to actively engage in learning?
• Measuring Impact: How can we quantify the ROI of learning programs in outsourcing partnerships?

What Effective L&D Looks Like in Sustainable Outsourcing

When looking at solutions for the challenges discussed, the panel noted the importance of centralised learning platforms that deliver consistent, engaging content to all locations. Platforms like Learn Amp help organisations create:

• Standardised onboarding programs to accelerate time-to-competence.
• Bite-sized, mobile-friendly learning content to fit learning into busy shifts.
• Social learning spaces that encourage peer-to-peer knowledge sharing.
• Data dashboards to measure engagement, skills development, and business impact.

Embedding L&D into Operating Models: 3 Key Strategies

Treat L&D as a Business Process, not a Project
Learning shouldn’t be an afterthought or an annual event. It needs to be a continuous, embedded process that evolves with the business and its outsourcing needs. 

Make Learning a Shared Responsibility
Learning success shouldn’t fall solely on HR or L&D teams. Operations managers, team leaders, and employees themselves all need to co-own learning outcomes. 

Measure What Matters
Sustainable learning models measure not just completion rates, but real business impact: faster onboarding; fewer errors; higher customer satisfaction; and improved employee retention. The LinkedIn Workplace Report shared that 94% of employees would stay longer if companies invested in their development. 

Key Takeaway

If there’s one key takeaway from the webinar, it’s this: sustainable outsourcing depends on sustainable learning. When organisations invest in embedding learning into every stage of the outsourcing lifecycle, they create an employee experience where team members thrive.

If you would like to access a copy of the recording it is available here: Webinar Link

The year ahead promises to be a turning point for customer contact. AI and automation are advancing at an unprecedented pace, yet businesses are facing economic uncertainty, rising costs, and rapidly shifting customer expectations. The pressure to adopt new technology and improve service levels means leaders must make bold, strategic choices.

At the end of 2024, we held our annual ‘Big Conversation’ to uncover key challenges for the year ahead and hear directly from cross-sector contact centre leaders about how they’re addressing them. These insights have shaped our latest whitepaper, 2025: A Year of Difficult Conversations?. In this paper, we explore those challenges in detail and outline priorities and solutions. One theme dominates: success in 2025 will depend on how well businesses navigate ‘difficult conversations’—both within their organisations and with their customer and suppliers.

How can you make the right tech decisions in the age of AI?

AI can be a powerful tool for improving operational efficiency. However, the reality is stark: according to Gartner, 80% of AI projects fail, which is twice the failure rate of non-AI projects. Despite this, the pressure in the boardroom to “do something with AI” is stronger than ever. The key question isn’t whether to implement AI, but how to do so strategically and safely.

When AI is implemented well it can deliver valuable results. But the risks of adopting this still fledgling technology can be significant—wasted investment, damage to reputation, and disruption to operations. The businesses that succeed with AI will be those that clearly define its use cases, align them with business goals, invest in high-quality, integrated data, and ensure that AI complements human expertise rather than replacing it. AI has the potential to be a game-changer—but only with careful consideration.

How do we meet economic, regulatory and resource challenges?

While grappling technology decisions, contact centres also face ongoing economic headwinds, regulatory challenges and a 15% decrease in headcount since 2019.

As businesses introduce new contact channels and explore innovative solutions, the fundamental customer need remains unchanged—a fast and effective response

But despite the rise in self-serve and co-pilot automation, customer satisfaction in the UK has declined. While automation is handling simple queries, agents are left to tackle only the most complex cases with fewer resources overall. Agents have little respite from more intense interactions and operations have fewer agents available. Even with future AI implementations, research predicts relatively modest headcount reductions of a maximum of 15%.

What’s more, in 2025, UK contact centres will need to absorb and manage an 8-10% increase in agent costs. Meanwhile the ongoing cost of living crisis means customers remain stressed and regulatory requirements add to operational demands —all against the backdrop of a muted growth forecast and ongoing economic challenges. No wonder things feel pressured.

Consequently, leaders are exploring various ways to optimise their service models, including offshoring, automation, or refining their approach.

Getting It Right: From Good to Great

One thing is clear. Transformation isn’t optional—it’s essential. The businesses that thrive in 2025 will be the ones that take a proactive approach. The most successful organisations will define clear, achievable AI use cases, align data, technology, and human expertise, prioritise governance, security, and compliance, and engage employees in AI adoption from the start.

The path ahead will present both opportunities and challenges, but with the right strategy, tackling today’s difficult conversations can pave the way for a stronger competitive edge tomorrow.

Read our paper for more detailed analysis of the challenges, but more importantly, how to tackle those challenges and put in place a positive programme of change.

The Whitepaper is free to download and immediately accessible below. We would love to hear your experiences too. Follow us on LinkedIn to share your thoughts.

In early February I attended the IP Integration “Spotlight” event at the Midland Hotel in Manchester where we were provided access to some great insights from the team and from Steve Morrell of ContactBabel, what follows are my thoughts and reflections arising:

Something around customer adoption of automated solutions has been playing on my mind, it often happens when I suggest someone talk to an automated bot solution so they can experience first-hand how far the technology has come, where it is going and what the real possibilities are.

Being in the CX world and having several partners on our network that have such solutions, I have a number saved to my phone, just for this type of conversation.  If I pull the phone from my pocket, find the number, dial it and hand it someone to have a conversation then I often feel that the “conversation” isn’t as free flowing as it should be.  Why? Well that is a great question.

I suppose it could be that for the past 15 years when contact centres have effectively forced customers to speak to automated voice response systems, we have typically limited customer so saying one word “listen to the following list of options and then say the option you would like” or “in a few words please say why you are calling today” so for years we’ve been saying ‘please speak to this automated system in a short staccato format’. Now, in a matter of a couple of years, some businesses are offering customers the opportunity to speak freely to their bots or automations, whilst others are still on the limited few words space. No wonder consumers get confused – and the acceptance and adoption of voice automation could well be held back as a result. 

Voice is here to stay?

The truth is that voice interactions are still our favoured route of contact as customers, when it comes to getting things done and obtaining reassurance that we’ve been heard.  Whilst the death of voice in contact centres has been forecast for the past 20 years, the reality remains that voice is here to stay, millennia of evolution cannot be undone so quickly. Data shared at our webinar on the State of the Customer Experience Market with David Rickard of Everest Group in November (article link) validated this, as their research highlighted that 72% of revenues amongst the outsource community were still coming from voice-based activity in 2023 when both agent supported voice and conversational AI driven interactions were considered.

The data shared in the room in Manchester by Steve Morrell of ContactBabel corroborated this view, with 64% of interactions being cited as voice in his forthcoming 2025 report. Also that we are so keen to ensure that we speak to someone that we will now wait in the longer queues that have been identified post pandemic and that we have accepted these as the norm.

So, as a human race we have a deep attachment to use of voice, however I’m still receiving articles daily which suggest otherwise – and ours is an industry which is based on employing people to talk to customers. We need to acknowledge that ‘the bots’ or automation is coming for our lunch, which according to an article in the New York Times on February 1^st it may however already be in a place to arrange someone to bring our lunch and where may that end?

An article by Kevin Roose details several tasks which he managed to complete using OpenAI’s Operator, a new AI agent in the week prior. Most of the tasks it did autonomously with minimal intervention. It met its brief of being an AI agent that uses the computer to accomplish valuable real-world tasks, without the need for supervision, to complete tasks in the background with a handoff back to the user to enter passwords or payment card details.  However, in Kevin’s article he talks of how it ordered lunch to be delivered to a colleague’s house and responded to LinkedIn messages well, up to the point where it started signing him up to attend webinars, amongst other tasks.  There were, however, several tasks where the automation struggled or needed an amount of reassurance or confirmations. Because of which he felt that it would have been faster to do the tasks himself, but acknowledged that the AI agent is at an early stage of development.

What we do know is that the evolution of technology is only gaining pace. Peter Diamandis, founder of the XPRIZE (https://www.xprize.org/) , is cited as having said in 2020 that “the next 10 years will bring more progress than the last 100 years” Given the pace of change in the past 5 years, it is reasonable to assume that Moore’s Law will hold true in this instance –  and that we need to be ready for this.

As humans we like voice, we choose voice. But if personal assistants in the form of OpenAI’s Operator or DeepSeek were to be adopted by the general public (your customers) to complete their home admin tasks, then these systems won’t have the same emotional connection to voice conversations and will be happy to interact directly with a company bot. However, how quickly will we reach that point?

Public adoption is key then?

We can implement the best solutions in the world, but if nobody uses them, what use are they?

Whatever is coming next, we have a dependency on customers to embrace and use those solutions, whether that is voice automation in the contact centre or the potential for the eventual use of “their own” automation by customers to engage with brands to resolve issues.

We’ve seen before conversations around ‘brand by-pass’. Now, using an Alexa or alternative voice-activated AI assistant to complete simple tasks is clearly the gateway to us getting to a point of asking technology to, say, engage with our utility provider to amend our direct debit or to find a cheaper insurance renewal.  At this point we as individuals will have less input to what brands we choose to purchase, so then the brands that will succeed are those that are easiest for our automations to interact with.

But before we get to this utopian vision of admin free lives with our AI assistants ensuring the effective running of our homes and lives, we need to pass a point of public adoption of AI.

A 2023 report from Ipsos shows that 66% of people they surveyed globally expect that products and services using artificial intelligence will profoundly change their daily life in the next 3-5 years. Whilst this is the average, the range of responses on a country and demographic level vary considerably, with the proportion expressing this belief in South Korea as high as 82%, whilst France sees the lowest number agreeing with this sentiment at 51% (we in the UK see 58% agreeing with this statement).

So, whilst there is broad agreement that services using artificial intelligence will change our lives, what people are willing to adopt and how is a key consideration, acknowledging that some will be unable to adopt due to a variety of reasons.

The conversation at the Spotlight event therefore quite naturally centred on work that could be done to implement changes or applications of AI to better support the contact centre agents in delivering service efficiently without too much impact to the customer, generating a series of marginal gains which support the agent in resolving customer queries, potentially reducing call durations and in turn queues and repeat contacts –  a series of win/win scenarios which:

• Improve service
• Reduce pressure on the contact centre team
• Reduce repeat contacts
• Reduce the time customers spend trying to get through
• Reduce costs
• Improve staff wellbeing

Changes which fulfil the appetite of businesses to implement changes and leverage AI, but consider how willing customers are to adopt these changes.

Is some re-programming required?

If we want the possible AI solutions to be successful, we will have to consider how we guide customers to use these solutions most effectively. Our industry has created a sub-optimal situation through a combination of poor customer experiences in the past, limited system capabilities and a “tell me in three words” approach. If we want customers to embrace the possibilities of technology, then we need to bring them on the journey.

Consider how self-serve check-outs have become the norm when we are out shopping in recent years . There is a journey that I’ve certainly been on to this point, which I discussed with IPI’s Sam Grant at lunch.

Coming prepared, we need our customers to come to the contact prepared to engage with AI.

Similarly, from prior experiences I soon learned that I need to stop putting my shopping bag in the bottom of my basket, then putting my items of purchase on top of it, which created friction in the process when I needed to get to my bag to enable me to pack items as I scanned them.  So, ideally, we need our customers to come to the contact prepared to engage with AI (unless they don’t want to?)

Offering a choice? Do I want to self-serve or would I prefer to queue?

When I’m approaching the tills, I can see a queue for a till with a cashier or I can see available self-serve checkouts. If I can also see someone there by the self-serve tills to support me, then I can make an informed decision.

Unexpected item in bagging area! Solutions need to be flexible enough to minimise friction.

That bag I just dug out from my basket, I’ve tapped that I’ve brought my own bag, but it is perhaps heavier than the scales expect, therefore I’ve got an unexpected item. I’m removing and resetting the bag but there is a red flashing light and now I’m waiting for someone to come help me.  We’ve all been there (please tell me this wasn’t just me!). The solution has now evolved, though, replacing scales either with additional trust by the retailer, or with cameras, but the result is a smoother customer experience.

Authorisation for purchase There will be times when someone must step in. If so, ensure it is done in a timely fashion.

OK I bought wine, it’s the weekend, please don’t judge me. The process to verify that I’m of age and can make that purchase has parallels also. We need to ensure that if a customer needs support then it is quickly available. Now I want those annoying flashing lights to flash brighter, because   I need help to complete my purchase.

How do you want to pay? Payments need to be frictionless, tap and go, no creased banknotes!

The same will apply to your callers they need to be able to make the payment without being moved to another channel and of course you need to ensure you are properly protecting that payment data.

Do you require a receipt? perhaps we need to acknowledge that customers will want validation of their conversation, of what was committed to and that they can trust that it will be done.

It has taken me a long time to reach the point of clicking no to a paper receipt. I want to be able to evidence that I’ve paid and not just walked round the shop popping things in my bag. Part of the reason so many of us are still reverting to speaking to a human when we have an issue, other than our lived experiences of trying to explain a complex situation in 3-word blocks, has to be that we can say “I talked to …. And he said he’d sorted it”.

What does it all mean?

People are complex. The implementation of self service and automation of the simpler query types means that average contact centre conversations are now much longer than they were and with rising staff costs there is a clear pressure on businesses to make changes to reduce customer servicing costs.

There is a broad spectrum of solutions available to support businesses address these challenges, whether outsource or technology. These need to be properly aligned to your objectives, and it is likely that you may need to speak with someone around how to select, prioritise and deploy these solutions.

If you need to chat then feel free to drop us a line.

As part of our recent webinar with Zoom, we discussed how a brand is far more than just a name or a product; it’s the sum of what the public thinks, feels, and believes about a business. It’s built on both tangible elements like product features and packaging, and intangible ones like emotional connections, marketing, and even independent conversations beyond a brand’s control. Delivering on the brand promise—a commitment to customers about what they can expect—is therefore paramount to success. But when businesses fail to deliver, the consequences are costly and far-reaching.

Businesses increasingly turn to outsourcing partners to support customer service and contact centre operations. However, ensuring these partners can uphold the brand promise is critical. By exploring the importance of a brand promise, the risks of failure, and the value of the right outsourcing partner, organisations can better position themselves for success.

What is a Brand Promise, and why does it matter?

A brand promise communicates the essence of a company’s mission, values, and purpose. It represents what customers should expect when interacting with the business. For example, Red Bull’s brand promise encapsulates the idea of “freedom” and giving “wiiings” to people and ideas. They successfully integrate this into their sponsorships of extreme sports and events, translating their values into tangible experiences that reinforce their mission.

Delivering on this promise consistently builds trust, fosters advocacy, and encourages loyalty. Customers who feel a brand aligns with their expectations and values are more likely to:

• Pay a price premium for products and services.
• Recommend the brand to others, driving organic growth.
• Maintain long-term relationships, increasing customer lifetime value.

The cost of failing to deliver on the Brand Promise

When businesses fail to meet expectations, trust is eroded. Research reveals that 31% of customers are willing to pay more for excellent service, but failure to deliver service quality results in significant revenue loss. Poor service costs UK businesses an estimated £7.3 billion per month in employee time spent resolving issues. Additional consequences of falling short on service delivery include:

• Damaged Reputation: Dissatisfied customers share their negative experiences online, influencing potential buyers before they even engage with the brand.
• Increased Marketing Costs: Companies must invest heavily to rebuild trust and mitigate reputational damage.
• Lower Customer Lifetime Value: Customers experiencing poor service are unlikely to return, reducing their overall spending potential.

Service delivery directly underpins the price premium brands can command. Without great service, even the best product offerings lose their appeal—and profitability.

Managing customer experience at scale

The challenge for brands lies in scaling customer experiences while maintaining human, natural, and supportive interactions. Customers expect more than just advanced technology; they demand seamless, elegant, and intuitive service that delivers the right information at the right time. Poor customer satisfaction—as seen in the UK Customer Satisfaction Index, which recently dropped to its lowest point since 2015—reflects the critical need for investment in experience.

To understand how service impacts decision-making, organisations should explore:

• Price Premium Expectations: How much more are customers willing to pay for exceptional service?
• Perceptions of Good Service: What defines great service from a customer’s perspective?
• Service’s Influence on Purchasing Decisions: How does a seamless experience drive loyalty and sales?

Leveraging outsourcing to deliver consistent experiences

Outsourcing has been a transformative tool for businesses over the past 40 years, enabling growth, transformation, and improved customer service outcomes. To realise these benefits, organisations must select their outsourcing partners carefully, considering solution fit, commercial alignment, and cultural compatibility.

1. Solution Alignment: The partner’s solution must match the company’s specific needs, including sector expertise, channel coverage, geography, and appetite for automation. Proven experience with similar challenges can offer peace of mind.
2. Commercial Mechanisms: The cost of service should account for the entire support structure—not just front-line agents—to ensure scalability and sustained quality. Contracts should incentivise mutual success and allow for evolving requirements over time.
3. Cultural Fit: Partners must embody the company’s values and approach, representing the brand authentically to customers. Building a genuine partnership requires mutual respect and clear processes for engagement.

Mitigating outsourcing risks

To minimise risk, businesses must define clear objectives, success measures, and realistic timelines before outsourcing. Processes should be fully documented, and knowledge transfer planned meticulously to ensure a smooth transition. Continuous communication with the outsourcing partner is essential for alignment.

Outsourcing also enables access to specialised skills, flexible scaling, and cost efficiencies, all of which support business growth without overextending internal resources. The key is selecting a partner who acts as an extension of the organisation’s team—not just a supplier.

Conclusion

Delivering on the brand promise is a strategic imperative that builds trust, drives loyalty, and sustains growth. Poor service is not just an operational issue but a risk to brand value and viability. Businesses that prioritise exceptional customer experiences can protect and enhance their reputations, achieving sustainable success.

Outsourcing, when approached thoughtfully, can be a powerful enabler of these outcomes. By choosing the right partner and fostering a collaborative relationship, organisations can mitigate risks, enhance service quality, and uphold their brand promises with confidence.

At Customer Contact Panel (CCP), we’ve witnessed first hand how these factors are influencing decision-makers, especially CX leaders and CFOs. If you’re in the midst of making an outsourcing choice, you’ve probably got one of the following on your mind. 

Growing Customer Demands: Meeting High Expectations 

It’s not just about answering calls anymore. Customers want fast, personalised, and empathetic interactions that feel seamless and aligned with your company values. This means businesses must be more careful than ever when choosing an outsourcing partner. A BPO’s cultural fit with your company is crucial—they need to speak your tone, align with your brand, and uphold the level of service your customers expect – all of which take time which you don’t have. So, companies are scrutinising potential partners more closely, ensuring they’re a perfect match. 

Technology: The New Wild Card 

Right now, you’re being asked to do more with less or deliver a better service with the same budget. With inflation, high interest rates, and currency fluctuations, offshoring doesn’t feel like a financial guarantee anymore. Add in automation—think AI tools and chatbots – and CFOs are starting to wonder if tech could be the silver bullet to that beast of a budget. Whilst AI and Automation can scale fast, they can come with hefty initial costs. Businesses are now weighing their options: 

1. Do they stick with outsourcing (onshore, nearshore, or offshore)? or
2. Do they double down on tech?

It’s a tough decision. Get it right, and they could boost customer loyalty; get it wrong, and it might lead to a backlash.  

ESG: Outsourcing in a Politically Charged World 

Outsourcing is no longer just about cutting costs; it’s also about navigating complex ethical and political waters. With Keir Starmer pushing for stricter ESG (Environmental, Social and Governance) standards, businesses are questioning their outsourcing partners, especially if those countries are known for poor labour practices or environmental issues. Throw in political instability and outsourcing now feels like a risky gamble. Operations could grind to a halt at any time, and businesses can’t afford that. 

On top of that, data security is tighter than ever. With the UK government’s more stringent regulations, especially for industries like finance and healthcare, outsourcing is becoming bogged down in compliance red tape. A single data breach could ruin a brand’s reputation and customers’ trust—so finding a partner who understands data security is more important than ever. 

Lastly, with the UK’s £22 billion budget shortfall and a focus on reshoring jobs, companies are balancing cost savings against their political and ethical responsibilities. 

How CCP Makes Your Life Easier 

At CCP, we get it – outsourcing feels complex. But we’re here to simplify it for you. We help businesses make smart, informed and equitable choices through services such as: 

• Partner Matching: We connect businesses with a handpicked network of pre-vetted outsource partners (220+ partners infact), cutting down on the time and risk of finding the right partner.
• Cultural Fit Analysis: We ensure your outsourced team aligns with your brand’s values and service style, so there’s no misstep in tone or approach.
• Technology Sourcing: We know how difficult it is to cut through the sales patter and find the right tech for your customer contact needs. Well look no further, we have a network of 120+ pre-vetted and audit technology partners – who will get right to the point.

The Bottom Line 

Outsourcing decisions are taking longer now because the stakes are higher. Customers expect nothing less than excellent service, and businesses are being much more careful about who they partner with. But with the right approach, outsourcing remains a powerful tool. 

At CCP, we guide businesses through the process, ensuring they find the right fit, reduce risks, and build lasting partnerships. In fact, 93% of CCP’s clients maintain long-term relationships with their outsourcing providers – proof that our approach works. 

With CCP by your side, navigating the increasingly complex outsourcing landscape is much smoother, helping you make the right decisions for today’s customer demands and tomorrow’s success. 

Everest Group have been in the industry since 1991 and are a specialist research firm producing c. 2,500 reports per year, these include their assessment of the state of the Customer Experience Management (CXM) market.

Through this latest report they estimate the CXM  market to be in the region of between $112 and $114 billion of revenues in 2023 for work connected to customers looking for support assisted through digital or human channels. There is an expectation that revenues will, however, be flat through 2025.

However, this accounts for only one third of the market which if taking in-house operations into account would be c. $330 billion, which presents a continued opportunity for the outsource community.

Other highlights include views around channel adoption and predictions of the death of voice are still not coming to pass, when considering include both agent supported voice and conversational AI driven interactions then, 72% of revenues were still coming from voice-based activity in 2023.

The average number of FTE has reduced by 15% since 2018/19 in the 2022/23 report. We know this has been driven by automation, elimination activities, improvements in efficiency, deployment of technologies especially around agent assist. The impact of generative AI has clear contributed to the ability of agents to be more efficient and reduce AHT. However, a survey of over 200 enterprises showed that 20.6% expected no impact to headcount, the majority (37.3%) expected a moderate impact of 5 to 15% and the smallest proportion of respondents (14.3%) expected a significant impact of greater than 15%.

What are clients or prospects looking for?

What insights can we gather from the session that can be applied in our conversations?

• There is still a strong demand for voice
• Deal cycles are longer than they used to be (as we’ve heard in many discussions)
• Increased adoption of GenAI is happening
• There is a desire to develop strategic partnerships, with longer relationships to enable access to better solutions
• Cost optimisation including movement to offshore locations to balance costs remains a focus,

However, when it comes to locations the list of new ones for global English support is growing. More attention is being paid outside the traditional locations and people are talking more about sub-Saharan Africa. Whilst limited numbers have been signed so far, there is a clear interest here. This could be in part be due to people being keen to understand what talent will be needed in 3 years and what skills those people need should also be a consideration as potential clients are now asking these questions.

Priorities for businesses working with service providers still include looking for smart optimisation, operational efficiencies and the collation of insights and data that can inform decision making in the business.

There is a continued focus on the development of agent experience, driving staff satisfaction and making agent roles easier through the use of technology and GenAI to ensure that talent is retained within business, to the ultimate benefit of customer experience, of course.

What businesses want to know is how you can solve a specific problem or challenge. They are now less inclined to say “this is my volume can you staff to that” and more likely to say “this is the problem, how can we create better outcomes together?”.

Customer experience remains critical and there is a movement from delivering an OK experience at the lowest cost, to instead now looking at the end-to-end experience from marketing through the customer lifecycle and then back into the next phase of marketing.

The impact of technology?

As with all changes, consideration needs to be made as to what is appropriate for the needs of your customer. For example, the use of voice in sales environments means that there 82% of activity is still voice led, whereas in Tech support this falls to 61%.

Technology will be beneficial when used in the right contexts, modernisation of existing solutions, the ability to collate data to make decisions around both customer and employee experience, but it needs to be an enabler not just an offering. We need to be clear as to what problem you are using it to solve.

Some clients will forge strategic partnerships with suppliers bringing the right technology and people to solve an issue. Using an outsource provider can bridge the gap from the migration to emerging technologies as outsource partners have people with the skills, knowledge and experience to support that change and can flex staffing requirements as necessary.

Decision making, however, will take longer as a result of the impact of technology change across the wider organisation. Changing experiences using systems and using better data to bring a consolidated view and benefits across the wider organisation means that there will be more stakeholders in the decision making process and therefore it may take longer to make those changes – which could then contribute to the feeling that deals need to be longer in duration to ensure benefits have time to be realised

Sector specific outlook

Healthcare has grown quickly last year and it appears it will continue to do so, Retail has again grown well this year and is forecast to grow faster in 2025, travel and hospitality whilst flat this year is expected to grow faster next year as the sector starts to look more at connected experiences using generative AI.

There is expected to be some reduction in headcounts in the Telco and Media space as providers look to squeeze costs and use technology to deliver savings.

Of course, the willingness of customers to engage with AI differs by sector. Healthcare and travel and hospitality have been among the slower adopters. As technology has moved faster, BFSI and Retail are embracing these changes too, with a focus on use cases to improve experiences and end to end solutions.  Agent assist, post call automation and agent training are all areas where AI solutions are moving into production. Less progress has been made on knowledge management and least of all on the use of sentiment analysis.

Most progress has been made with transitioning to production, where there is a direct impact to the customer. The focus so far in the past 12 months has been to deploy Gen AI into “safe” internal use cases, initially.

Evolving expectations

Clients expect more than ever before from outsource providers. In terms of the top 5 capabilities / requirements, some themes are consistent with those that have always existed, however in some cases there may be more openness or need for support, especially when using new and evolving technologies.

• Uplifting quality
• Elevating customer experience
• Implementing new tools and technologies
• Productivity
• Ability to introduce new ideas

AI skilled agents who are supported by automation allowing them to be more efficient and effective and deliver better experiences as a result, is becoming a standard expectation. Future capabilities will include near real time voice-to-voice translation with minimal lag. The opportunities that this may present need to be considered, but this could support many clients, as a result there needs to be careful consideration.

If you wish to chat about or need support in any of the areas discussed then feel free to contact us.