Evaluating the impact of Gen AI on Business Process Outsourcers

Everest Group's insightful chart illustrates the profound impact of Generative AI on the Customer Experience Business Process Outsourcing (CX BPO) industry.

From 2023 to 2026, the industry, also known as Customer Experience Management (CXM), expects a 15% shrinkage from $115B (roughly 30% of the overall CX market).

AI challenges BPOs that often rely on selling minutes of their associates' time.

However, it also creates several opportunities:

• BPOs can uplevel their services by incorporating AI-powered solutions.

• Many contracts include productivity improvement goals and/or incentives, which can be achieved through AI adoption.

• BPOs can assist businesses that want to experiment with AI but might not have the necessary competencies in-house.

The traditional bifurcation of BPOs into those competing on sheer scale and efficiency, versus those blending technology and human capital to optimize yields, is becoming obsolete. AI is forcing everyone to embrace technology and leverage it.

You can find Everest’s research here.