Performance metrics may look stable — service levels met, occupancy steady, costs controlled — yet something feels structurally off.

AI pilots launch but stall. Digital volumes increase, but accountability blurs. Customer expectations rise faster than internal capability.

For decades, the traditional contact center operating model delivered exactly what it was designed to deliver: efficiency, predictability, and cost control.

It worked — until it didn’t.

Customers began carrying expectations from every interaction they have — across industries, across platforms — into every new experience. The standard is no longer set by direct competitors. It is set by the most seamless interaction they had yesterday.

Today’s CX environment is structurally different. Customers move fluidly across channels. AI is embedded into workflows. Regulatory scrutiny has intensified. Data from every interaction is strategically valuable.

Yet many organizations are still operating on a structure built for queue management — not experience orchestration.

The issue isn’t effort.

It’s architecture.

Traditional contact center operating models were engineered for a different era.

And that architecture is beginning to fracture under modern CX demands.

The Model We Built — and Why It Worked

For years, the contact center was optimized around a clear set of assumptions:

• Voice was the dominant channel
• Demand patterns were forecastable
• Workforce management drove precision
• Performance was measured by speed and cost
• Technology cycles were relatively stable

It made sense for an environment defined by concentrated voice demand, slower technology cycles, and clearer functional boundaries.

It was structured. It was disciplined. It delivered measurable efficiency.

But it was built around queues, not journeys. That distinction now matters.

The Emerging CX Operating Model

The future operating model will require evolving tools. AI will advance, automation will expand, and digital ecosystems will grow more complex. But technology alone will not determine success.

The differentiator will be how organizations redesign accountability, governance, and workforce structure to integrate those capabilities. Structural alignment will determine whether those investments create lasting value.

If structural alignment is the differentiator, redesign cannot be abstract. It requires deliberate structural shifts.

Across industries, four are becoming clear:

1. Unified Experience Ownership
2. Embedded AI Governance
3. Workforce Redesign — Not Just Upskilling
4. Real-Time Data Integration

Together, these shifts represent more than incremental improvement. They signal a structural redesign of how CX organizations must operate to compete.

The Bottom Line

Traditional contact center structures are not flawed. They were optimized for a less complex era.

They worked — until they didn’t.

The question now is not whether the model was effective. It is whether it still fits.

The future of CX will not be won by those who install better tools.

It will be won by those who redesign how the organization works.

Guest blog post written by John Sorenson

The Execs In The Know Expert Network

Want to connect with Nick or learn more about his expertise? You can do that through the Execs In The Know Expert Network, a curated group of trusted CX professionals, each selected for their proven leadership and deep subject matter expertise across key areas of the customer experience discipline.

Access to the Expert Network is available exclusively to Know It All (KIA) members. Not a member yet? Join the free KIA community today and start tapping into CX expertise you can trust.

About John

The post Evolving CX Operating Model: Why Traditional Contact Center Structures Are Breaking Down appeared first on Execs In The Know.

In my role as vice president of customer experience and digital innovation at TELUS Digital, I’ve been having conversations with CX leaders that follow a similar pattern. They’re grappling with rising customer expectations for efficient service, increasing operational costs, and shifting talent requirements for agents due to improvements in self-service solutions. Ultimately, these leaders are looking for value and are adamant that the choices they make are going to need to stand up to significant scrutiny.

It’s my estimation that, due to a combination of factors, the business process outsourcing (BPO) industry is on the precipice of a considerable evolution. In fact, if you just look at the projected growth of the BPO market, it’s expected to scale to $525.23 billion by 2030, growing at a CAGR of 9.8% from 2025 to 2030, according to Grand View Research. Beyond the scale, this is a time of great change and possibility. A host of agent-facing technologies are augmenting the abilities of contact center professionals, opening up new, compelling outsourcing opportunities around the globe. Where once a brand might have only considered delivering support from onshore sites, they’re now looking offshore. Where once a brand might have limited its scope to a few countries, it’s beginning to recognize a world of opportunities. 

The leaders I’ve been speaking with are interested in exploring new payment models. They’re looking to performance-based pricing models, which create shared accountability and strengthen partnerships between brands and their BPO providers. These new pricing models, coupled with new technology, are reshaping CX delivery in a cost-conscious world.

Why outsourcing models are being reimagined

While cost pressures are driving many conversations right now, what’s fascinating is the ways in which these forces are pushing the industry to evolve beyond simple cost-cutting. What I’m seeing instead is a push toward balanced value creation, where organizations are finding ways to optimize costs while building strategic partnerships that drive innovation and enhance customer lifetime value.

This evolution is particularly evident in how contact centers are being leveraged. As industry expert Adrian Swinscoe recently noted on an episode of the TELUS Digital podcast, Questions for now, “The contact center is this gold mine of real-time data, which many brands are not really leveraging to its full extent.” Forward-thinking organizations are now treating their contact centers as strategic assets, increasingly working with their CX partners to derive insights and ultimately improve products, enhance service delivery, and drive customer loyalty.

This shift towards strategic partnerships is reshaping how brands approach outsourcing altogether. We’re witnessing a growing number of countries emerge as viable outsourcing locations, which is enabling brands to dilute risk across numerous regions and sites, offer support across time zones, and leverage specialized expertise. By thoughtfully matching customer needs with these varied talent pools, brands can optimize their CX delivery. For example, this could mean routing complex technical issues to specialized teams, ensuring language-specific support is available, or tapping into local cultural knowledge for more nuanced customer interactions. The result is a more flexible, resilient, and capable global CX operation that can adapt to changing customer demands while managing costs effectively.  TELUS Digital has more than 30 countries of operation, setting us up to match the right capabilities with each brand’s unique needs, whether that’s multilingual support, follow-the-sun coverag,e or specific domain knowledge.

The result is a more sophisticated approach to outsourcing that goes beyond simple labor arbitrage. It’s about leaning on a partner to find the right balance between cost efficiency and value creation, recognizing that the cheapest option isn’t always the most cost-effective in the long run.

Innovation knows no bounds or borders

The proliferation of AI in the contact center is erasing traditional limitations and creating opportunities for exceptional service delivery from anywhere in the world. According to HubSpot, 78% of customer service professionals report that AI and automation allow them to concentrate on the most important aspects of their roles. Think of what that could do to reduce stress for agents and minimize attrition, which, as all CX leaders know, is a significant cost in the industry. In a separate study from Microsoft about enterprise use of AI in general, it was found that for every $1 invested in AI, companies are seeing a $3.50 return — often in just 14 months. 

At the heart of this transformation are AI-powered knowledge bases and systems that put the collective wisdom of an entire organization at every agent’s fingertips. I once had a really eye-opening experience at a logistics company’s in-house contact center. In the middle of a side-by-side, an agent pulled open a desk drawer and referred to a printed FAQ document. I knew that wasn’t permitted, and when I asked him about it after the call, he explained that their knowledge base was so vast that it was impossible to find what you were looking for. He said, “We have just learned to adapt so we can take care of the customer experience.”

We helped this client out by deploying speech analytics to identify the most frequent reasons for support calls, and narrowed it down to about 50 knowledge base articles, which comprised about 90% of the call volume. Next, we summarized those articles, worked on a knowledge base chatbot fueled by AI, and almost immediately, we saw a dramatic change. The solution reduced average handle time by 38 seconds while increasing CSAT by nine points, but most importantly, it boosted agent confidence and satisfaction — particularly among new hires — leading to lower attrition rates.

Beyond knowledge management, we’re seeing remarkable advances in other areas that are transforming global CX delivery. Real-time coaching and performance analytics provide instant feedback, helping teams continuously improve their skills. Collaborative platforms narrow the distance between contact center locations, enabling the delivery of consistent customer experiences. Through AI-driven routing and task allocation, savvy leaders are matching customer needs with the right expertise, improving first-contact resolution rates. 

Similarly, speech enhancement technology increases call clarity for phone support. Background noise, poor connections, and other technical barriers can create friction in support interactions. The technology works by processing audio inputs in real time, filtering out background noise, enhancing voice clarity, and optimizing sound quality — much like how noise-canceling headphones improve listening experiences. With this technology, brands can ensure clear conversations between customers and agents, preserving the authentic voice and personality of agents while optimizing for mutual understanding. 

Outcome-based pricing aligns incentives between partners

To navigate cost pressures, the leaders I’m speaking with are increasingly looking beyond traditional pricing models and instead want to explore a dynamic where compensation is tied directly to results. This outcome-based approach creates natural alignment between brands and their outsourcing partners, as both parties are invested in achieving the same goals. It’s a model that gives brands confidence to expand their geographic horizons, knowing their partners are equally invested in delivering excellence through clearly defined, measurable outcomes. It bears repeating that this type of pricing strategy, in conjunction with speech enhancement and language translation technology for non-voice support, is having a marked influence on how leaders are looking at CX delivery right now. Those who would never even consider looking to leverage support from beyond their shores are now moving on to international opportunities.  

The beauty of outcome-based pricing is its flexibility. For sales-focused programs, we might tie compensation to conversion rates or revenue generated. In customer care scenarios, we could look at metrics like customer satisfaction scores or first-call resolution rates. Some brands might prioritize efficiency metrics like reduced handle times, while others focus on customer loyalty indicators. On the other hand, forward-thinking leaders and boundary-pushing companies may go even further, tying compensation directly to specific outcomes achieved, such as total monthly paid/active subscribers, or completed transactions, moving completely away from measured KPI-reliant pricing models. The key is choosing outcomes that genuinely reflect the value being created and working with a partner who is able to deliver. 

Clear agreements, with well-defined metrics and measurement methodologies, are essential. Both parties need a shared understanding of what success looks like and how it will be measured. This includes establishing baseline performance levels, defining measurement periods, and agreeing on how external factors might impact outcomes.

When done right, this model transforms the brand-provider relationship from a transactional one to a true strategic partnership. It encourages innovation, as providers are incentivized to find new ways to improve performance. What’s more, it fosters a long-term perspective, as both parties focus on sustained success rather than short-term gains.

Adapt proactively to changes in the CX landscape

The customer experience outsourcing landscape is in a state of flux, driven by technological innovation and evolving partnership models. AI-powered tools are enabling contact center teams to deliver exceptional service from anywhere in the world, while outcome-based pricing models are creating stronger alignment between brands and their CX partners.

What excites me most about this evolution is how it’s changing the conversation. Where once the focus might have been solely on cost reduction, today we’re talking about value creation. We’re discussing how to leverage global expertise, enhance service quality, and drive innovation — all while maintaining cost efficiency. The most successful brands will be those that embrace and adapt to these changes, working with partners who can help them navigate this new landscape.

If you’re ready to explore how these approaches could benefit your CX operations, connect with our team of experts.

Guest blog post written by Jim Mitchell, Vice President of Customer Experience and Digital Innovation at TELUS Digital

The post Transforming CX Delivery in a Cost-Conscious World appeared first on Execs In The Know.

At our recent Briefing, “The Future of Call Center Partnerships,” CX leaders and strategic partners came together to discuss how maturing call center outsourcing models are reshaping the way organizations think about delivery models, commercial structures, and cultural alignment.  

The conversations underscored that adaptability, collaboration, and secure data sharing are now foundational to innovation, whether integrating artificial intelligence (AI) into frontline workflows or optimizing global delivery networks. 

The discussions revealed a clear trajectory: the shift toward outcome-based partnerships, expansion into emerging talent markets, and smarter integration of technology that amplifies, not replaces, human capability. The briefing provided a candid look at the strategies and operational realities shaping the next era of call center partnership.  

For executive leaders, these insights are not just best practices; they’re a roadmap for building more resilient, value-driven partnerships in a complex and fast-moving market. 

Let’s dive in. 

Data Access as a Prerequisite for Innovation 

Data emerged as the bedrock of effective call center partnerships. Without secure, timely access to operational data, even the most advanced tools can fail to deliver impact. 

Participants shared cases where structured data sharing with trusted partners enabled AI-powered solutions, such as agent assist systems, that cut handle times and improved first-contact resolution. Yet the true enabler was not the technology itself, but the integration made possible by shared visibility into customer interactions. 

“There is limited capability that us as a partner can provide without… access to data… we need you to trust us with your data… if we can resolve that challenge… we are in a position to drive a lot more value than what we’re driving now,” explained Steve Gush, Senior Vice President, Digital Services  at Foundever, underscoring data’s central role in innovation. 

“From a brand perspective, there’s this desire for us to be more innovative, to bring more technology, to bring more capability, and then from a partner perspective, it’s like we need you to trust us with your data,” said Doug Hoffschwelle, General Manager & Senior Vice President, Hypergrowth CX at ibex. “If we can resolve that challenge, I think we are in a position to drive a lot more value than what we’re driving now.” 

To strike the right balance, leaders emphasized governance frameworks that protect sensitive information while enabling the real-time analytics, predictive modeling, and optimization necessary for modern service delivery. This balance sets the stage for the next challenge: leveraging automation effectively alongside human talent. 

Balancing Automation with Workforce Strategy  

While automation promises efficiency, leaders were unequivocal: people remain central to service excellence. The most effective programs use automation to elevate, not replace, human expertise.  

“We launched AI in March, and we’ve got 1,200 different scenarios… those insights are then informing the copilot… what kind of real-time guidance can you give to the agents? How can you summarize things… optimizing knowledge bases… those are really practical things we’re doing,” described Jason Rosser, Executive Vice President, Solutions & Operations Strategy at IntouchCX. 

One example described AI knowledge systems that freed agents from repetitive tasks, allowing them to focus on complex issues, a shift that boosted both customer outcomes and employee engagement. These gains depended on intentional workforce strategies, including targeted training, clear career pathing, and retention programs. 

In discussing recruitment innovation, Jarrod Johnson, Chief Customer Officer at TaskUs shared, “We ended up deploying AI technology at the front of the recruitment cycle to basically make the onboarding of a viable candidate much easier. We cut the cost to hire by 50 percent in eight out of 12 markets that we’re in around the world.”

“The tools that exist today allow us to really optimize that insights-to-action loop… to elevate that to a place where we’ll be able to partner on automation upstream in the future,” added Rosser, looking ahead to broader AI applications. 

The takeaway was direct: automation and workforce strategy must advance in lockstep. Without a skilled and engaged human layer, technology alone cannot sustain customer trust or loyalty. This interplay also informs the way organizations now measure outsourcing value. 

The Shift Toward Outcome-Based Models 

The move from input-based pricing to outcome-driven models was a recurring theme. Success-based billing and performance-based contracts are aligning vendor incentives with critical business goals, from higher CSAT scores to improved resolution rates and even revenue generation.  

“It’s about being open, about being flexible, to be willing to look at things very differently,” explained Jim Mitchell, Vice President of CX & DX Innovation at TELUS Digital, stressing the importance of mindset in achieving outcomes.

Adopting these models demands rigorous clarity on metrics, definitions, and governance processes. Done well, they enhance collaboration and accountability. Done poorly, they risk misalignment and eroded trust.  

“Trust is so important to me. Are we trusted insights experts for your brand, or do we deeply understand your business, your customer, and your brand? Because if we’re not that, I don’t know how you can trust us and consider us for digital transformation,” added Hoffschwelle. 

These commercial shifts are happening alongside another transformation: the diversification of global delivery. 

Global Delivery Diversification 

“The primary driver we saw initially was the business continuity and diversification of footprint for the English language… that has significantly shifted. Egypt, as a multilingual hub, has a relatively near-term trend that large brands are taking advantage of for cost efficiency and scale,” explained Johnson. 

Emerging markets like Vietnam, Egypt, and Pakistan are gaining traction for their talent depth, cost efficiency, and scalability. Yet leaders cautioned that cost savings alone are not enough to justify market entry. 

Cultural compatibility, language capabilities, infrastructure reliability, and workforce maturity remain decisive factors. This more selective approach reflects a broader shift toward building delivery ecosystems that are both cost-competitive and strategically resilient. 

Demonstrating Measurable Impact 

The day’s discussions underscored the importance of proving value through quantifiable results. Examples included: 

• A 10 percent reduction in contact volume via automation and process redesign. 

• A 20 percent CSAT improvement through targeted training and tech enablement. 

• Faster ramp-up times for new hires with AI-assisted onboarding. 

These successes reinforced the point: measurable performance improvements require precise alignment of strategy, technology, and execution. That alignment often depends on cultural cohesion across organizations.  

Cultural Integration as a Performance Lever 

Cultural misalignment can undermine even technically sound outsourcing programs. One case highlighted operational KPIs being met while customer sentiment declined due to mismatched interaction styles. The solution was targeted cultural training and feedback loops, which improved customer perceptions without major process overhauls. 

This example illustrated that cultural integration, in communication, problem-solving, and service delivery, is not a soft consideration. It is a direct driver of performance and customer loyalty.  

“The way that we live our core values… is the backbone of everything that we do… that culture has been our secret sauce to trying to drive industry best-in-class attrition… low attrition drives operational performance,” added Johnson, connecting culture to performance metrics. 

The same principle applies when scaling programs. 

Scaling Through Collaboration and Adaptability 

As call center partnerships mature, flexibility becomes a competitive advantage. Leaders observed that the most scalable programs are built on joint scenario planning, transparent knowledge-sharing, and a willingness to recalibrate as conditions shift. 

Poor scale planning, whether in tech capacity, workforce supply, or governance, can quickly erode program value. By contrast, proactive adaptation strengthens both operational resilience and partner relationships, paving the way for outsourcing’s evolving role. 

Redefining the Strategic Role of Call Center Partnerships 

Throughout the briefing, a clear shift in mindset emerged: outsourcing is increasingly seen not as a cost-reduction tool but as a strategic platform for innovation, customer engagement, and operational resilience. 

This repositioning changes how leaders select partners, measure performance, and oversee programs at the executive level. Organizations treating outsourcing as a co-creation environment, rather than a transactional service, are better positioned to respond to market shifts and technological advances. 

Conclusion 

The  “The Future of Call Center Partnerships” Briefing confirmed that the industry is in a period of strategic redefinition. Data governance, technology integration, human capital investment, outcome-based models, and cultural alignment are now interdependent levers for success.  

For executives, it’s clear: structure outsourcing relationships as dynamic, trust-based partnerships capable of delivering measurable results today while adapting to the challenges of tomorrow. “I think the big buzzword for our industry over the next few years is really going to be orchestration… the ecosystem of your nearshore, offshore, and AI shore,” added Gush. 

Thank You to Our Host and Partners  

A special thank you to American Airlines for allowing us to host this Execs In The Know event at their headquarters in Fort Worth, Texas, and our business partners, Foundever, ibex, IntouchCX, TaskUs, and TELUS Digital, who joined us as panelists for “The Future of Call Center Partnerships Briefing.” Your thought leadership, perspectives, real-world examples, and candid insights enriched the conversation and helped shape the actionable takeaways shared here. Your commitment to advancing our industry made this discussion both valuable and impactful. 

Stay tuned for details on our next Call Center Partnership Briefing, where CX leaders gather to share insights, spark ideas, and shape the future of outsourcing together. 

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Today’s most innovative brands are using outsourcing not just to offload volume, but to build loyalty.

Outsourcing is now a frontline growth strategy, and new partnerships, AI-powered support, and a deeper focus on human connection are shaping it.

CX Outsourcing Isn’t What It Used to Be

At a time when customer expectations are rising and resources are stretched, outsourcing has become a tool to scale personalized service, expand availability, and retain customers through consistent, quality care.

But this shift brings new questions to the forefront:

• Can your BPO partner act like an extension of your brand?

• How do you balance AI automation with human empathy?

• What metrics matter now that it’s not just about cost?

The answers lie in how companies are evolving their outsourcing models from transactional to transformational.

It’s Not About Reducing Volume

Brands are rethinking what success looks like. Traditional metrics like average handle time (AHT) or cost per contact are giving way to customer effort scores, post-service retention, and agent satisfaction.

Because when BPO partners are immersed in your brand, equipped with AI, and empowered to solve, they’re not just handling calls. They’re earning loyalty.

AI Isn’t Replacing Humans

AI is automating the simple stuff and making space for humans to focus on what matters most: emotionally charged, high-impact interactions.

Smart CX leaders are now designing hybrid models:

• AI Assist: AI supports the agent in real time

• AI Complete: Low-risk queries are handled entirely by bots

• Human-First: Complex or emotional issues are escalated to people trained to act with care and context

When AI and people work in harmony, the customer wins.

Loyalty Lives in the Agent Experience

One overlooked truth? Agent experience drives customer experience. Outsourced agents need more than a script; they need brand training, access to customer data, and a clear sense of purpose.

The best partnerships treat BPO teams as an extension of internal teams, investing in coaching, collaboration, and continuous innovation.

What’s Next: A Roadmap for Loyalty-First Outsourcing

The next wave of CX outsourcing is strategic, AI-enabled, and human-first. Brands are co-creating with partners, aligning on shared goals, and shifting from reactive support to proactive loyalty-building.

Want to see what this looks like in action? Read the full story in the latest issue of CX Insight magazine.

The post The Loyalty Shift: Rethinking CX Outsourcing appeared first on Execs In The Know.

The decisions made today around call center outsourcing are shaping not just how brands communicate, but how they survive and thrive.

Right now, businesses are navigating a complex market with shifting customer demands and intense scrutiny on cost efficiencies. Customer interactions, primarily through call centers, have transformed from straightforward service points into critical brand-defining moments. But why are these partnerships so essential, and how do leaders effectively balance cost, quality, and loyalty to stay competitive?

Let’s explore this dynamic landscape together.

Exploring Outsourcing Decisions That Shape CX

1. The True Cost of Outsourcing

Cost still grabs attention, but the conversation has shifted. According to Deloitte’s 2024 Global Outsourcing Survey, only about 34 percent of companies now view outsourcing purely as a cost-reduction tactic, down from around 70 percent in previous years. Meanwhile, 83 percent report that integrating AI into their outsource strategies has driven both cost and quality improvements, with 25 percent explicitly citing gains in both areas.

This signals a transformation: Outsourcing is viewed less as a budgetary crutch and more as a strategic investment.

2. Quality That Builds Trust

Quality remains the linchpin for successful outsourcing. Exceptional customer experiences require meticulous attention to detail, consistent performance, and genuine empathy. Quality isn’t optional; it’s foundational. McKinsey’s 2024: Where Is Customer Care in 2024? survey, which drew on responses from over 340 CX leaders, found that 55 percent of companies currently outsource customer care operations, and almost 47 percent plan to expand that role in the next two years.

The report emphasizes that shared goals, stringent quality metrics, continuous training, and effective governance characterize best-in-class outsourcing partnerships. When done correctly, quality interactions foster trust and turn routine calls into brand-strengthening moments.

3. Cultivating Loyalty, Interaction by Interaction

Loyalty is hard-earned and easily lost. Loyalty is the quiet force behind repeat business and referrals. A recent study on contact centers debunked the myth that outsourced operations inherently produce weaker CX.

In fact, CX scores can match or exceed in-house performance when organizations align incentives, maintain robust oversight, and deploy competitive outsourcing structures. Effective outsourcing becomes a loop: decisions are data-informed, training is ongoing, governance is consistent, and agents are empowered—each call reinforcing customer satisfaction and loyalty.

4. Partnerships: More Crucial Than Ever

In an era of rapid technological advancements and shifting market dynamics, robust outsourcing partnerships have become vital anchors for stability and innovation.

According to Forbes’ April 2025 article The Future of Outsourcing: 2025 Perspectives on Global Collaboration, organizations that move beyond transactional outsourcing and invest in enduring, innovation-driven partnerships “will unlock innovation, agility, and success.”

These advanced partnerships foster shared accountability, co-developed tech solutions, and faster go-to-market capabilities—crucial advantages when market shifts arise suddenly.

Exceptional CX Relies on Strong Outsourcing Partnerships

The future of CX outsourcing depends on leadership that can seamlessly integrate cost efficiency, world-class quality, and customer loyalty through intelligent partnership strategies. The narrative is changing: outsourcing is no longer just a financial tactic—it’s a cornerstone of brand resilience and customer trust.

By forging cross-functional alliances, embracing continuous improvement, and aligning with innovation-minded providers, CX teams can ensure every interaction strengthens customer relationships. As recent insights from Deloitte and Forbes affirm, organizations that master these dynamics aren’t merely performing, they’re thriving.

Your brand’s next chapter depends on these decisions. Align your outsourcing partnerships today and chart a customer-centric path toward tomorrow’s success.

The post Navigating Call Center CX Outsourcing Partnerships appeared first on Execs In The Know.

Because when your brand’s frontline is often an outsourced agent…

When your contact center is the place customers turn to in moments of friction…

And when loyalty is earned or lost in a single interaction…

You realize that outsourcing is customer experience (CX). And how you manage it is a direct reflection of your brand. It’s time to reframe outsourcing as more than a procurement line item. Here’s why.

1. It’s the frontline of your brand

Outsourced agents are often the first, and sometimes only, human interaction a customer has with your brand. That moment of truth can’t feel disconnected, transactional, or low-effort. Because no customer blames your BPO, they blame you.

Why it matters: You’re outsourcing trust, not just tasks. Every interaction either builds or breaks customer loyalty.

2. Cost vs. quality isn’t a tradeoff anymore

The old model assumed you had to choose between low cost and high quality. That equation has changed. Modern outsourcing partners use automation, real-time coaching, and advanced training to deliver better outcomes without bloating your budget.

Why it matters: With the right partner, you can lower costs and raise your CSAT scores. You don’t have to compromise anymore.

3. Agent experience = customer experience

You can’t deliver standout customer experiences with disengaged frontline teams. BPOs with high turnover, inflexible scripts, and limited coaching will torpedo your CX. But those that prioritize culture, career development, and empowerment become a true extension of your brand.

Why it matters: Burned-out or unsupported agents create burned-out customers. CX leaders must ensure their outsourced teams are treated like brand ambassadors because they are.

4. CX strategy and outsourcing decisions must align

You can’t promise personalization, empathy, and effortless support if your BPO still measures success by handling time alone. If your strategy is focused on customer lifetime value, your partner’s metrics should reflect that.

Why it matters: If your BPO isn’t evolving alongside your CX strategy, it’s holding you back. And if you’re not involved in those decisions, your brand may be heading in a different direction than you think.

5. Customer loyalty depends on consistency

Customers don’t care who picks up the phone; they care how they’re treated. If the experience varies wildly between in-house teams and outsourced agents, it chips away at trust.

Why it matters: Loyalty is built in moments of truth. Consistency across channels and partners is non-negotiable.

Your Outsourcing Strategy for Customer Experience

Outsourcing is no longer just about managing volume. It’s about managing outcomes. It’s about creating a seamless, human-centered customer journey, regardless of who’s delivering it.

When done well, outsourcing is a force multiplier. When done poorly, it’s a silent CX killer. That’s why customer experience leaders must have a seat at the table. Outsourcing isn’t just operational; it’s emotional. It affects how your customers feel, how your agents perform, and how your brand is remembered.

Continue the Conversation with Your CX Peers

Join us in Dallas–Fort Worth on August 7, 2025, for The Future of Outsourcing: Evolving Models for Cost, Quality, and Customer Loyalty. It’s your chance to connect with fellow CX leaders, share challenges, and gain fresh perspectives on the partnerships and strategies shaping what’s next.

Learn more and confirm your seat today.

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Strengthening Our Workforce

One of our primary focuses this year has been ensuring we have the right people in the right places. We’re doubling our full-time employee headcount, representing a four percent increase from last year’s peak staffing levels. But it’s not just about numbers – we’re being strategic about timing. Our recruitment and training efforts are scheduled to conclude by the end of October, giving our new Style Consultants plenty of time to become comfortable with our systems and procedures before the Black Friday rush.

To maintain stability during this crucial period, we’ve partnered with our BPO provider to offer retention bonuses to new hires. This investment in our team’s longevity is crucial for maintaining consistent service quality during peak season.

Optimizing Customer Access

We’re making significant changes to enhance our accessibility to customers. Perhaps most notably, we’re extending our service hours until 11 PM ET, a two-hour extension from our previous closing time. This change particularly benefits our West Coast customers, ensuring they have ample time to reach us during their evening hours.

We’re also making a substantial investment in our chat support capabilities, increasing our resources by 33 percent. Chat has proven to be an excellent revenue-generating channel for us, and its concurrent nature allows us to efficiently handle multiple customer interactions simultaneously.

Strategic Call Routing and Technology Integration

To maximize our effectiveness during peak season, we’ve implemented sophisticated call routing strategies. Sales calls are prioritized over warranty and WISMO (Where Is My Order) inquiries, and we’re using skills-based routing to direct sales opportunities to our top-performing Style Consultants.

I’m particularly excited about our AI agent-assist technology, which we launched in June. This tool guides our Style Consultants toward the next best action during calls and chats, and we’ve already seen impressive results in terms of reduced average handle time and increased agent adoption.

Keeping Our Team Motivated and Engaged

Success during peak season depends heavily on maintaining high team morale and motivation. We’ve developed an exciting mix of incentives, including Michael Kors products, monetary rewards, and premium electronics like Apple iPads and Watches. These rewards are tied to both business and individual performance metrics, and we complement them with on-the-spot recognition for exceptional service.

We also understand the importance of showing appreciation during the holidays. That’s why we’re providing special celebratory meals for our team members working on Thanksgiving, Christmas, and New Year’s Eve. It’s our way of acknowledging their dedication during these important times.

Cross-Functional Collaboration

One of our key success factors is maintaining strong communication across departments. We host regular update calls with stakeholders from our distribution center, e-commerce, transportation, IT, store, and omnichannel teams. These meetings ensure everyone stays aligned and informed about critical updates and challenges.

Looking Ahead

As we approach this peak season, I’m confident that our comprehensive preparation will enable us to deliver the exceptional service our customers expect from Michael Kors. Our focus remains on creating seamless experiences that drive both customer satisfaction and sales performance.

The retail landscape continues to evolve, but our commitment to excellence remains constant. Through strategic staffing, innovative technology, and a motivated team, we’re ready to make this peak season our most successful yet.

About the Author: Ebrahim Hyder is the Vice President of Customer Service at Michael Kors, where he leads a dedicated team focused on elevating customer experience and driving operational excellence.

He is also a member of the Execs In The Know Advisory Board. 

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The research is a must-read, not only for CX leaders looking to understand the position of their peers but also for BPOs looking to better match their offering to the needs and expectations of buyers of their products and services.

Outsourcing isn’t just a cost-cutting measure—it’s a game-changer in CX. As global dynamics shift and customer demands intensify, outsourcing’s strategic importance has never been greater. Are you ready to embrace the future of outsourcing and transform your organization?

Let’s explore the key outsourcing insights and what they mean for your organization.

Cost Reduction: A Core Driver

Imagine a bustling boardroom where outsourcing decisions that shape the future are being made. The discussion often circles back to a powerful incentive: cost reduction. For many CX leaders, this isn’t merely a budgeting exercise but a strategic maneuver to keep their organizations competitive and agile in a fast-paced market.

Outsourcing offers a lifeline to companies aiming to streamline operations and reallocate resources more efficiently. By outsourcing non-core activities, organizations can focus on their strengths, innovate, and adapt to market changes without the burden of excessive overheads. It’s a critical lever that not only impacts the bottom line but also drives strategic growth and operational excellence.

Our report’s outsourcing insights found that 33% of CX leaders identify cost reduction as the primary goal of outsourcing. This sentiment is echoed by 30% of those considering outsourcing, underscoring its significance in strategic decision-making (Pages 14 and 17). The statistics reflect a broader trend where businesses are increasingly looking to outsourcing as a means to enhance financial health, maintain competitiveness, and foster a resilient business model.

In essence, cost reduction through outsourcing isn’t just about cutting expenses—it’s about transforming the organization into a leaner, more dynamic entity capable of seizing new opportunities and navigating challenges with greater agility.

Guarding Brand Equity: A Top Concern

Preserving brand integrity in outsourcing can feel like walking a tightrope. CX leaders are acutely aware that their brand’s reputation hinges on every customer interaction. This concern is paramount for 65% of leaders (Page 28), who worry about how well their partners represent the brand’s values and culture.

The stakes are high. Every outsourced interaction is a reflection of the brand itself, and any misalignment can erode customer trust and loyalty. Today, consumers have countless options, and a single negative experience can lead to significant brand damage.

So, how can we ensure outsourcing partners are more than just service providers but true brand ambassadors who embody a brand’s ethos in every interaction?

Here are just a few ways:

1. Rigorous Partner Selection: Look for partners with a proven track record of aligning with their clients’ brand values. This involves not just their operational capabilities but also their cultural fit and commitment to brand integrity.

2. Comprehensive Training Programs: Invest in training that goes beyond the basics. Outsourcing partners should receive in-depth education about the brand’s history, values, and customer expectations. This training should be ongoing, not a one-time event.

3. Continuous Monitoring and Feedback: Establish robust mechanisms for monitoring and providing feedback. Regular audits, customer satisfaction surveys, and real-time performance dashboards can help ensure that partners consistently meet brand standards.

4. Integrated Communication Channels: Maintain open and seamless communication channels between in-house teams and outsourcing partners. This integration ensures that partners are always updated on the latest brand strategies, promotions, and customer insights.

5. Shared Goals and Incentives: Align the goals and incentives of outsourcing partners with those of the brand. When partners share in the brand’s successes and are rewarded for upholding its values, they are more likely to act as genuine brand ambassadors.

6. Brand Immersion Experiences: Periodically, bring outsourcing team members in-house for immersive brand experiences. This could include visits to company headquarters, interactions with key brand leaders, and participation in brand events. These experiences help partners internalize the brand’s ethos.

By implementing these strategies, companies can transform their outsourcing partners into extensions of their own brand, ensuring that every customer interaction reflects the company’s core values and strengthens its reputation.

Willingness to Invest in Better Service

Now, let’s shift to a different boardroom scenario where leaders are not just looking at cost savings but at value creation and strategic investment.

According to our outsourcing insights, 60% of executives are willing to allocate more of their budget to access superior services and cutting-edge technologies (Page 32). This willingness marks a significant shift in how outsourcing is perceived—from a mere cost-saving measure to a crucial element of competitive advantage.

Investing in better service isn’t just about spending more; it’s about making smarter decisions that align with long-term business goals. Companies are recognizing that superior services and advanced technologies can drive innovation, improve customer satisfaction, and ultimately, enhance the overall customer experience. This strategic approach fosters a culture of continuous improvement and positions organizations to adapt swiftly to market changes and customer demands.

Moreover, this investment mindset is transforming the role of outsourcing partners. They are no longer viewed as external vendors but as strategic allies who contribute to the company’s success. By leveraging the expertise and capabilities of these partners, companies can focus on their core competencies while ensuring that their operational needs are met with the highest standards of excellence.

Flexibility, Quality, and Expertise

Consider a scenario where a global retail giant needs to scale up its customer support dramatically during the holiday season. Flexibility becomes the magic word. How can BPOs and organizations build models as agile and responsive as the markets they serve?

For 37% of leaders, the ability to adjust staffing levels swiftly and efficiently is a key reason to partner with BPOs (Page 7). This dynamic capability is not just about managing workloads but responding to ever-changing market demands. The emphasis on quality over cost underscores a profound shift in priorities. For 73% of CX leaders, agent performance and quality are non-negotiable when selecting a BPO partner (Page 23).

Preparing for Change

The future is not static; it’s a canvas of evolving strategies and shifting dynamics. Approximately half of the survey respondents are bracing for changes in their outsourcing arrangements within the next year, with 25-30% anticipating significant shifts (Page 13).

Adaptability is the key to survival and success in this dynamic business environment. As these changes loom, the critical question is: How can organizations and their BPO partners stay aligned and agile, ready to pivot and adapt to new challenges and opportunities? You can read and download the full report here.

To delve deeper into outsourcing insights like these, join us on August 6, 2024, for an exclusive CX Leaders Executive Outsourcing Briefing. This is your opportunity to connect with fellow industry leaders, share insights, and equip your organization with the knowledge to thrive in this dynamic environment.

Gain invaluable insights into the increasing role of BPOs, the latest industry challenges, and emerging innovations such as AI. Discover how successful organizations are not just outsourcing but also forming strategic partnerships that drive long-term value and customer satisfaction.

Don’t miss out on the chance to shape the future of your outsourcing strategy— learn more and reserve your spot today.

The post Beyond Cost Cutting: Key Outsourcing Insights from Corporate CX Leaders appeared first on Execs In The Know.

This Briefing isn’t just any event; it’s for CX leaders, by CX leaders. Whether you’re aiming to level up, realign your CX strategy, discover the trends impacting you and your teams, or explore new Business Process Outsourcing (BPO) options, this is the place to have those critical conversations with your peers and get a deeper understanding of how to lead the way for your organization.

As a CX leader, you constantly seek new perspectives, strategies, and industry connections to stay ahead. At our Outsourcing Briefing, prepare to be enriched with invaluable insights relevant to your 2024 strategy, and connect with CX visionaries, industry experts, and your fellow peers to unlock Outsourcing’s future.

Your hosts, Chad McDaniel, President of Execs In The Know, and John Billings, Senior Director of Global Workforce & Vendor Management at Hilton, will steer this event. Together, along with our expert panelists, they bring a wealth of knowledge and experience that promises to make this Briefing an unforgettable experience.

The Path Ahead

In the dynamic world of Outsourcing, change isn’t a threat—it’s the catalyst for innovation. As we approach 2024, we find ourselves at a crossroads ripe with opportunities. This Briefing is your bridge to these opportunities, catering exclusively to CX leaders like you.

Prepare to delve into a series of Outsourcing topics, including:

Navigating Market Choices: Explore the options—nearshore, offshore, hybrid, and Geo markets—to discover what suits your organization best.

Unraveling the Customer Conundrum: Decode the generational divide in the complex consumer landscape.

Budgets and Beyond: Learn how organizations are adapting their budgets, leveraging AI, and maintaining operational excellence through BPOs.

Designing CX Success: Whether your outsourced agents work remotely or in physical locations, we’ll dissect the strategies that win in an ever-changing labor market.

Building Strong Alliances: Discover how brands are finding the perfect cultural fit when selecting Outsourcing partners and leveraging these partnerships for success.

Who Should Attend This Briefing?

Corporate executives leading the charge in customer care strategy and execution, this one’s for you! If Outsourcing is or might be part of your CX strategy, this event is your golden ticket to valuable insights, connections with industry experts, and the chance to shape the future of Outsourcing.

Our agenda is designed to make every moment count. This isn’t just an event; it’s your opportunity to be part of the future of CX Outsourcing.

Secure Your Spot Today

Don’t miss this opportunity to join us in Dallas-Fort Worth!

Register now to secure your spot, and let’s make a mark on the future of Outsourcing together.

The post Come Shape the Future of Outsourcing with Us in Dallas-Fort Worth appeared first on Execs In The Know.