With the advent of Generative AI (gen AI), the world now stands on the precipice of a new era, characterised by a more demanding generation of customers, more conscious enterprises, and continuously evolving technology.   

Impacted by all of this, the Customer Experience Management (CXM) industry is experiencing shifting trends, which are exemplified in the Gulf region, due to the dynamic changes occurring therein. 

Reach out to discuss this topic in depth. 

Enterprises are eager to capitalize on the new opportunities that the shifting Gulf landscape offers. Some of the broad trends that the Gulf is experiencing are: 

• Growing tourism: To promote economic diversification and to reduce oil dependence in the Gulf region, the governments in the Gulf have been increasingly focusing on tourism and travel, leading to an influx of people from diverse cultures and an increase in visitor spend. Multiple international events such as GITEX Global 2024 and the Qatar International Food Festival also aim to attract tourists from all over the world 

• Participation in sustainability conversations: The Gulf is set to play a prominent role in the climate change and environmental sustainability conversation in the coming years. The launch of the UAE’s Net Zero commitment by 2050 sets the stage for the Gulf’s participation in environment sustainability actions, with the UAE being the first among the Middle Eastern and African (MEA) nations to set such a target 

• Increasing smartphone and internet penetration: There has been a rapid growth in smartphone adoption across Saudi Arabia, where internet penetration is expected to reach 97% by 2025. Similarly, both UAE and Kuwait are also experiencing a sharp growth in smartphone adoption 

• Growing prominence of African nations: Well-established North African countries such as Egypt are attractive delivery locations for customer experience (CX) services, due to their proximity to continental Europe and the UK. Additionally, the hourly agent rate in Egypt ranges from US $10-12 per hour, which is up to 50% less than rates in the UK and other European locations. Egypt is home to a multilingual workforce of approximately 250,000 full-time equivalents (FTEs), capable of supporting over 20 languages in both voice and non-voice business process services. Furthermore, various government initiatives such as Egypt’s National Strategy for Artificial Intelligence (AI), Digital Egypt Builders Initiative (DEBI), which was launched in 2020, as a scholarship program, and ICT 2030, in which Egypt is set to invest over $3bn in to improve infrastructure, digital transformation, and training programs for capability building, to enhance Egypt’s attractiveness in the CXM space. A growing diverse workforce, technological advancements, and the need for cost efficiencies, also position other upcoming North African countries such as Rwanda and Ghana as attractive delivery locations for CX services. These locations also offer an opportunity to meet impact sourcing goals. 

AI policies and initiatives shaping the CXM industry in the Gulf 

Therefore, businesses in the region are focusing on providing innovative solutions, catering to the changing consumer expectations amidst the technological advancements taking place. Some CX trends anticipated to shape the CXM industry in the Gulf are: 

• AI-driven hyper-personalization: Constant engagement and speedy responses are no longer enough to retain customers. Customers are looking for businesses that can personalize and build a relationship with them. The UAE has also established its National Strategy for Artificial Intelligence 2031, wherein it aims to develop AI technologies across multiple industries and adopt AI across customer communications. Tools and solutions powered by AI that utilize vast pools of data to provide hyper personalization, contextualization, and an understanding of linguistic nuances with a human touch, are expected to become the key differentiators for businesses while they engage with customers 

• Omnichannel experience: Increased access to smartphones and internet availability opens pathways to leverage mobile experiences. With most of the population having access to smartphones and the internet, mobile / digital marketing, and digital experiences will present opportunities for growth and outreach. Rampant penetration of the internet has led customers to access a variety of new services, such as telehealth and on-demand services such as food delivery and ridesharing, which were unavailable until now. Customers will continue to look for more integrated and seamless experiences for engagement and interactions across multiple touchpoints  

• Accent neutralization, translation, and transcription: With an increased focus on travel and tourism, technologies focusing on accent neutralisation, language translation, and transcriptions, seem to be natural CX trends on the cards. Increased cross-pollination and tourism will also provide an opportunity for enterprises to serve customers from varied cultures who speak diverse languages 

• Sustainability: With the participation of the Gulf in multiple climate change initiatives such as the COP28, which was held in the UAE in 2023, enterprises are looking for solutions that are aligned with their Environmental, Social and Governance (ESG) and sustainability goals. Businesses will now be encouraged to have more accountability and differentiate themselves through sustainable solutions 

• Growth of non-voice channels: As the gen Z population takes up the role of a customer, non-voice channels are projected to witness a significant increase in demand. This provides a tangible growth opportunity to develop and leverage non-voice channels such as AI-powered chatbots. The widespread use of smartphones will broaden opportunities to interact with the customer through a variety of mediums, such as social media, video, chat, and other applications 

• Responsible AI: Even though the benefits of AI have been experienced across industries and domains, it is paramount to understand the limitations and challenges that it brings. Just how a world without AI in the future is unthinkable, it is also unwise to function without responsible AI. Unchecked AI can lead to biases, illogical responses, and harmful outputs, impacting the reputation and credibility of businesses. Having AI as a part of the customer experience will no longer be a differentiator, rather having AI that is credible and responsible will be an indicator of leading businesses 

Future outlook 

With evolving times, it is only natural that the geographic and cultural trends of the Gulf will shape the CX industry in the region. It is crucial for enterprises in the Gulf, and for those looking to expand in the region, to be mindful of these trends to align with the transformative changes occurring in the region and position themselves for long-term success. 

If you found this blog interesting, check out our blog focusing on The Top 10 Predictions That Will Revolutionize CXM In 2025 | Blog – Everest Group, covered by the CXM program. 

To learn more about these 2025 CXM trends and to hear about the evolution in the CXM landscape, contact Aishwarya Barjatya (aishwarya.barjatya@everestgrp.com) or Akshara Vaidhyanathan (akshara.vaidhyanathan@everestgrp.com). 

It’s fascinating to see how DeepSeek currently seems to be everywhere on our social media feeds throughout the last couple of days. 

Unsurprisingly, it’s now sparking a mix of excitement and anxiety across the industry. For some, it’s a revolutionary breakthrough. For others, it’s raising serious concerns (and the deep correction in most tech stocks on NASDAQ on January 27^th only confirms that). 
 
The big debate: Whether DeepSeek is truly better than what OpenAI, Anthropic, or others have achieved. The internet is still split over which model outdoes the others. Some early tests do indicate that DeepSeek R1 manages to outscore its peers on some of the testing benchmarks. 

Reach out to discuss this topic in depth. 

Benchmark performance of DeepSeek-R1

Image source: DeepSeek-R1: Incentivizing Reasoning Capability in LLMs via Reinforcement Learning

Sheer compute power isn’t the only lever artificial intelligence (AI) creators have. An AI model can stand out in two ways in the current market – firstly by being state-of-the-art or secondly, by being almost as good but far cheaper. DeepSeek appears to have mastered the latter, and that’s what makes it such a revolution right now. 

Its founders claim to have developed DeepSeek with a budget of under US$6 million. And it took them less than two months to do that. Secondly, all the training was done on older NVIDIA hardware rather than using the most expensive chips – H100s.

While there are some questions being raised about the authenticity of that number (such as possibly not accounting for all the hardware costs because the hedge fund that owns DeepSeek was already in possession of the hardware, or DeepSeek being built off of Open AI and Anthropic models, thus significantly bringing down the costs), DeepSeek has clearly shown that you don’t need multi-billion dollar budgets or the most shiny hardware in the market to build truly competitive AI models anymore.  

It’s not just the development costs: What makes DeepSeek interesting is not just the development cost, but also the fact that it delivers the best that any AI company out there has to offer for free, at least for personal use. For commercial use, the cost per million tokens is considerably less at $0.55 per million input tokens and $2.19 per million output tokens, compared with OpenAI’s Application Programming Interface (API), which costs $15 and $60, respectively.  

What’s more? It is open source. Everything it has achieved is documented and available for others to replicate. This means that it should open the path for more such models to come up on the market, further putting pressure on pricing.  
 
Only good news for enterprises: For those who’ve been eager to embrace AI but held back by the high costs, DeepSeek might be the breakthrough they’ve been waiting for. Imagine a future where you don’t need to budget millions to train and run AI agents, don’t need super sophisticated hardware, and don’t need large, AI-skilled teams!  

DeepSeek might also open doors for self-hosting soon, which so far hasn’t been possible because of the hardware and computer costs associated with it. And it’s not just DeepSeek either, there are others out there, such as Kimi k1.5, Alibaba’s Qwen, and 01.AI. These newer models could lead to faster adoption, even among Small and Mid-Sized Businesses (SMBs). The eureka moment for Generative AI (gen AI)  might be now. These are exciting times for AI. With DeepSeek, it’s become clear that innovation in this space doesn’t require billion-dollar-deep pockets anymore and that is what truly makes it a game changer.

If you found this blog interesting, check out our blog focusing on AI-Powered Coding Assistants: Shaping The Future Of Software Development | Blog – Everest Group, which delves deeper into another topic relating to AI. 

To learn more about DeepSeek, what it may mean for the services industry, and the evolution of AI, please contact Aishwarya Barjatya (aishwarya.barjatya@everestgrp.com) or Sharang Sharma (sharang.sharma@everestgrp.com).  

Agent Resurgence

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On August 12^th, 2024, the Biden administration launched a new initiative – Time is Money – to crack down on all the ways that enterprises try to avoid customer queries and issue resolution by trapping them in arduous cycles of automated communication (doom loops), as well as not connecting them directly to a human agent.

Fast forward a few months and the administration has taken an unfavorable view of the situation and since stated that companies have established these cumbersome processes by design, to deter consumers from getting their monetary due (in the form of refunds or subscription cancelation), along with adding to their daily frustration, as inevitably they then profit from customers ultimately giving up.

This blog explores the concept of doom loops and analyses customer pain points and their impact on brand loyalty and regulatory compliance. Additionally, it provides strategic recommendations for enterprises on how to address these issues, particularly in their outsourcing contracts.

Reach out to us to discuss this topic further with our expert analysts.

Introduction: from interactive voice response (IVR) to chatbots

Doom loops refer to the frustrating and often endless cycles customers experience when trying to resolve issues through automated systems. The concept of doom loops in customer service has its roots in the early days of IVR systems, which were widely adopted by companies in the 1980s and 1990s.

IVR systems allowed businesses to handle a large volume of customer calls by automating the initial stages of interaction. However, these systems often became a source of frustration for customers who found themselves trapped in an endless cycle of menu options, unable to reach a human representative or resolve their issues.

As technology advanced, chatbots emerged as a new solution, promising to enhance customer service by providing instant, 24/7 support. However, these chatbots have inherited many of the same issues that plagued IVR systems. Customers often find themselves in a similar doom loop, where the chatbot fails to understand their query, provides inaccurate information, or directs them through a series of irrelevant responses before they can reach a human agent. This problem is particularly pronounced in industry verticals such as banking and financial services where customer inquiries often involve sensitive and intricate issues.

The evolution from IVR to chatbots was intended to improve efficiency and customer satisfaction, but in many cases, it has simply shifted the medium of the doom loop from telephones to digital interfaces. While chatbots offer the potential for greater scalability and personalization, they also present new challenges in ensuring that customer interactions are meaningful and effective.

Consumer pain points and the impact on brand loyalty

Customers’ experiences with chatbots and IVR systems can be frustrating, particularly when they encounter a doom loop. Common pain points include:

Focus on banking and financial services

While doom loops exist across verticals, in the financial services industry, these pain points can have particularly severe consequences. Financial institutions handle sensitive information and transactions, and customers expect a high level of accuracy, security, and responsiveness.

When these expectations are not met, it can lead to a significant decline in customer trust and loyalty. Banks and financial institutions have attempted to address these issues by creating specialized flows for critical areas such as fraud detection, financial crime, and compliance. These flows are designed to quickly escalate issues to human agents, ensuring that high-priority concerns are handled efficiently. However, despite these efforts, many customers still experience frustration, particularly when the automated system fails to recognize the urgency of their issue or mistakenly routes them through a generic flow.

This situation is particularly concerning in the context of fraud detection. Customers who suspect fraudulent activity on their accounts expect immediate and effective assistance. If they are caught in a doom loop, the delay in resolving the issue can lead to significant financial losses and a complete breakdown of trust in the institution.

A prime example of this is the Wells Fargo unauthorized accounts scandal, where sales employees opened millions of unauthorized accounts to meet their targets. Irate customers faced difficulties in account closure and resolving related issues quickly because of long wait times and unhelpful responses, which saw a loss of customer trust, widespread media coverage, frustrated customers and employees, penalties for the organization, and eventually significant customer attrition.

Regulatory scrutiny and potential liabilities

The growing reliance on chatbots and automated systems in customer service has not gone unnoticed by regulators. In recent years, there has been increasing scrutiny from regulatory bodies such as the Consumer Financial Protection Bureau (CFPB) in the United States. These regulators are concerned about the potential for these systems to create barriers to effective customer service, particularly in critical areas such as fraud detection and compliance.

The CFPB, for example, has initiated actions targeting financial institutions that rely heavily on automated systems without providing adequate human support. The agency’s primary concern is that these systems can lead to consumer harm, by delaying the resolution of critical issues or providing inaccurate information. Therefore, it has proposed new rules that would require financial institutions to ensure that customers have easy access to human representatives, possibly by clicking a single button. It is also planning to issue rules or guidance to crack down on ineffective and time-wasting artificial intelligence (AI) or chatbots used by banking and financial services (BFS) enterprises for customer service and identify use cases in which usage of voice recordings (IVR) is illegal.

The implications for financial institutions are significant. Failure to comply with these regulatory expectations can result in substantial fines and legal penalties, not to mention potential damage to the institution’s reputation. In an environment where evolving regulatory compliance is already a significant challenge, the additional burden of ensuring that automated systems do not create doom loops adds another layer of complexity.

Strategic recommendations for brands

Given the risks associated with doom loops in customer service, enterprises must take proactive steps to address these issues. Here are some strategic recommendations:

By taking these steps, enterprises can mitigate the risks associated with doom loops and ensure that their customers receive the level of service they expect and deserve.

Exceptional customer experience = sustained customer trust

The issue of doom loops in customer service is not new, but it has taken on new dimensions in the digital age as brands increasingly rely on automated systems. Ultimately, the success of enterprises in today’s competitive environment depends not only on their ability to manage costs but also on their commitment to providing exceptional customer service.

By focusing on the needs of their customers and avoiding the pitfalls of doom loops, enterprises can build and maintain the customer trust and brand reputation that is essential to their long-term success.

If you found this blog interesting, you can read our Decoding The EU AI Act: What It Means For Financial Services Firms | Blog – Everest Group (everestgrp.com) blog, which delves deeper into the topic of regulatory compliance for financial services firms.

If you’d like to discuss the impacts of doom loops on customer experience in financial institutions in more detail, please reach out to Dheeraj Maken or Aishwarya Barjatya.

In 2023, the APAC region’s Customer Experience Management (CXM) market witnessed moderate growth, fueled by the adoption of omnichannel solutions, generative AI, and cloud services and the evolving social media landscape. Enterprises seeking to collaborate with CX service experts are driving this expansion to reduce costs, diversify operations, and support regional expansion. The travel and hospitality sector notably increased its CXM outsourcing due to a surge in tourism in countries such as Malaysia, Singapore, and the Philippines, while telehealth services’ rise in India and China spurred CXM’s demand in healthcare. Additionally, increasing mobile penetration and retail and e-commerce growth have amplified digital CXM solutions’ need across the region.

Providers have established centers of excellence focused on deploying advanced solutions, such as knowledge-as-a-service, conversational AI chatbots, and agent-assist tools, to accelerate innovation in digital CX, including generative AI. Many providers are also partnering with hyperscalers and AI startups to bolster their AI capabilities and broaden their service offerings.

• Customer Experience Management (CXM) Services PEAK Matrix® Assessment 2024 – APAC

  

  What is in this PEAK Matrix® Report

  In this report, we analyze 29 CXM service providers’ capabilities across industries in APAC. Each profile examines the provider’s service focus, key IP and solutions, domain investments, and case studies.

  Scope: 

  • Industry: all
  • Geography: APAC

  This assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading CXM service providers, client reference checks, and an ongoing analysis of the CXM services market

  Contents:

  In this report, we:

  • Examine the CXM market in APAC
  • Assess providers’ key strengths and limitations
  • Provide sourcing considerations for enterprises

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Generative AI

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The landscape of Customer Experience Management (CXM) has witnessed a remarkable transformation within the advent of Generative AI (generative artificial intelligence). Based on periodic comprehensive studies conducted by Everest Group with customer experience (CX) leaders from over 300 enterprises globally, we present comparative insights that highlight the progress made in the past year (2023 to 2024).

Using two different primary studies, research has been conducted regarding gen AI in CXM operations, in the process providing our perspective on future developments.

Reach out to us to discuss this topic further with our expert analysts.

Adoption of digital CX solutions – 2023 vs 2024

Propelled by gen AI, a significant shift has been observed in the adoption of digital CX solutions such as automation, self-service, conversational artificial intelligence (AI), data and analytics, and migration to cloud contact centers.

There was a 15-30% increase in the number of enterprises having deployed these solutions from 2023 to 2024.

Generative AI awareness and its potential

Noteworthy changes in the awareness and potential of various gen AI use cases were also observed during this analysis. In 2023, while most enterprises had a good understanding of applications such as text, image, and code generation, few had robust knowledge of other application areas.

However, this scenario changed significantly in 2024. The majority of enterprises across industries now report having a solid working knowledge of various gen AI applications. Many are even considering synthetic data generation and audio and video generation as high-potential applications for gen AI in CXM.

The role of third-party providers

The role of third-party providers has become pivotal for enterprises, as they look to navigate complexities. Their importance is increasingly becoming more significant as enterprises realize the various nuances required in developing these solutions.

In 2024, there is a significant uplift in enterprises opting for tech-heritage or specialized AI companies, to use for implementation of gen AI, to be able to leverage their expertise in this technology and achieve faster time to market.

Additionally, more enterprises are outsourcing to contact center providers for gen AI integrations, capitalizing on their CXM domain expertise to better customize customer journeys and improve productivity and CX metrics.

Conversely, there has been a notable decline in the hybrid approach to gen AI development which combines both in-house and outsourced development. From a whopping 70% in 2023, the percentage of enterprises preferring this mode has reduced to only around 30%. This decline, accompanied by a decline in internal development, can be attributed to the change in business priorities for organizations and their need to have eagle-eyed focus on improving their core competencies and achieving their business objectives of revenue improvement, cost reduction, and adapting to new business challenges.

Enterprises choosing to invest wisely in their long- and short-term approach to Gen AI

From a financial perspective, enterprises exhibited a more optimistic stance toward generative AI adoption in 2023, with nearly two-thirds planning to invest over US$1 million in the next 12-18 months on gen AI solutions in CXM.

However, as the technology has matured, enterprises now have a clearer understanding of the returns these investments can generate. Over the past year, many enterprises observed that a significant number of gen AI pilots failed to progress to the deployment phase.

Consequently, in 2024, enterprises have taken a more cautious approach toward gen AI adoption. They now prefer to evaluate each application on a use-case basis before committing to full-scale investments. This shift is reflected in the investment budgets for gen AI, with only half of the enterprises (down from two-thirds) now planning to spend more than US$1 million on these initiatives. This decrease in investments on gen AI is propelled further by the current difficulties in the macroeconomic and business environments, where organizations are placing cost reduction and revenue enhancement as their top priority.

This cautious stance, however, does not mean that there is a decrease in the perceived potential of gen AI. 2025 continues to hold promise of a booming gen AI adoption. In fact, more than 80% of the enterprises plan to invest more than US$1 million in 2025. As gen AI continues to demonstrate its potential and deliver its promised outcomes, enterprises are likely to embrace it with increased enthusiasm.

If you found this blog interesting, registrations are now open for our Gen AI Unhyped: How It Is Evolving And How To Plan For Success | LinkedIn Live – Everest Group event LinkedIn Live event on September 11, 2024!

If you have questions or want to discuss CX strategies and solutions, please contact Mohit Kumar at mohit.kumar@everestgrp.com or Aishwarya Barjatya at Aishwarya.Barjatya@everestgrp.com.

Japan is on the verge of a significant transformation in the customer experience (CX) outsourcing industry. This blog explores how generative AI and other cutting-edge technologies are revolutionizing Japan’s CX market, creating unique opportunities and challenges in a country where tradition and innovation coexist harmoniously. Reach out to us to discuss this topic further.

The CX outsourcing industry is undergoing significant disruption due to generative AI (gen AI) and other advanced technologies. Gen AI is transforming contact center operations by automating interactions, enhancing agent performance, and improving operational efficiency. Meanwhile, other technologies, such as accent neutralization and AI translation, are eliminating language barriers, improving service quality, and boosting workforce productivity. As enterprises look at outsourcing to meet some of the changing dynamics in the market, vendor management strategies are being re-evaluated, with a focus on providers with robust technology capabilities. These trends collectively indicate that the global CX industry is on course to get disrupted.

This blog illuminates how Japan – the Land of Cherry Blossoms – is also on the cusp of CX disruption. In this vibrant country where tradition meets innovation, the CX market presents unique opportunities and challenges, much like navigating the bustling streets of Tokyo.

Before we deep dive, the following image sets the stage some of the unique attributes of Japan’s business landscape.

Distinctive qualities of Japan

Although Japan is known for its innovation, historically, it has been cautious in adopting cutting-edge technologies in the CX space. Factors such as cultural conservatism, hierarchical structures, and a preference for traditional methods of working have contributed to this lag. However, with the advent of gen AI, this scenario is poised to change.

How is the Japanese CX market changing? ­

The Japanese concept of Monozukuri (ものづくり) which encompasses meticulous attention to detail, dedication, and pride in creating high-quality products in-house, makes CX outsourcing less appealing in the world’s third-largest economy. However, AI has found a way to make outsourcing attractive even to the most discerning clients. It further presents an opportunity for Japanese enterprises to save on increasing operational costs onshore, develop capabilities to serve customers through non-voice channels, and leverage technologies such as automation and analytics to deliver superior quality CX.

Tasked with adapting to this evolving market, the country’s outsourced CXM market has witnessed a significant evolution in recent years.

A land of growing opportunities for outsourcing amid some long-standing risks

With a market size of US$4-5 billion and a market share of 26% in the Asia Pacific (APAC) outsourced CXM market, Japan commands attention as a prominent region in the outsourced CXM services industry.

The outsourcing market in Japan stands out due to its traditional emphasis on quality over cost, process control, and unique cultural challenges, favoring in-house over outsourced operations. However, since the early 2000s, a declining workforce and the rise of global outsourcing companies have changed this tendency. Japan, which is still behind some of the other APAC geographies in terms of CX innovation and CX tech, combined with an aging and shrinking workforce, is now starting to grapple with issues of high operational costs and labor shortages in the CX service delivery landscape.

However, Japan’s government is placing a strong emphasis on gen AI; for instance, Japan’s industry ministry invested over US$55 million in AI initiatives in 2023. Furthermore, both central and local governments have introduced tax breaks, grants, and loan assistance to attract foreign investments.

This has made Japan an attractive market for CX outsourcing as various businesses across sectors look to expand their outsourced operations.

Nonetheless, these opportunities come with some risks:

• Economic risk: Despite being the 3^rd third largest economy in the world, Japan has been in and out of short-term economic recessions, and is currently facing an economic slow-down with a growth rate of only 0.6% in the last decade
• Demographic risk: The aging population is another concern, as the majority workforce is between the ages of 45 and 54, making it challenging to find and retain qualified CX professionals
• Geological risk: Japan, situated within the Ring of Fire, makes it one of the most tectonically active places on Earth and heightens the risks of natural disasters such as frequent earthquakes and floods due to its geographical location

Recently, the Bank of Japan (BOJ) ended its negative interest rate policy in March 2024, signaling a stronger economy. Japan’s economy is forecasted to grow by 1-2 % in the second half of 2024, driven by wage growth, consumer spending, and a weak yen. Recent economic trends indicate a potential upswing in spending, further enhancing Japan’s appeal as a destination for CX outsourcing operations. However, companies must navigate through the nuances of these opportunities and risks to gain from Japan’s outsourced CXM market.

Current service provider landscape in Japan

In Japan’s contact center outsourcing sector, there are two distinct categories of service providers: regional firms such as Transcosmos, Bellsystem24, TMJ, and Altius Link (formerly Relia Inc.) and global companies such as Concentrix, Teleperformance, TDCX, and Foundever. While regional providers hold the largest market share in the Japanese outsourced CXM market, global players also have a notable presence, leveraging their established positions in the Asia-Pacific region.

Service Provider	Description
		·       Headquartered: Tokyo, Japan ·       FTEs and delivery centers: 43,000 FTEs across 71 locations ·       Industries served: Manufacturing, BFSI, telecom & media, government, and retail sectors. ·       Transcosmos stands out for its comprehensive suite of digital and traditional CX solutions and delivers cost-effective, results-oriented services. The company provides a comprehensive suite of customer experience (CX) solutions, including chatbots and multilingual speech recognition tools (supporting 25 languages) ·       Their blended delivery model leverages a mix of onshore and other low-cost locations for CX delivery. Furthermore, they demonstrate a commitment to client success through flexible pricing models. These models include outcome-based, output-based, and hybrid options, allowing for risk- sharing and cost-efficiency tailored to each client’s needs
		·       Headquartered: Tokyo, Japan ·       FTEs and delivery centers: 11,000 FTEs across 37 locations ·       Industries served: Manufacturing, BFSI, telecom & media, retail, healthcare, and public sectors. ·       It provides services such as customer service, technical support, CRM, and sales services. Its consulting offerings include CX strategy formulation, contact center operational consulting, VoC analysis, process benchmarking, and end-to-end crisis management solutions
		·       Headquartered: Tokyo, Japan ·       FTEs and delivery centers: 19,000 FTEs across 23 locations ·       Industries served: Manufacturing, BFSI, technology, and public sectors ·       TMJ offers a wide variety of CX solutions, including contact center outsourcing, sales and technical customer support services, and back-office services. TMJ caters to a diverse range of industries in Japan to improve its presence in the APAC region and establish a hub and spoke model with its base in Tokyo
		·       Headquartered: Tokyo, Japan ·       FTEs and delivery centers: 33,000 FTEs across 100 locations ·       Industries served: Manufacturing, BFSI, telecom & media, energy and utilities, government, and public sectors ·       It delivers customer support, order fulfillment, technical support, inbound and outbound sales, and helpdesk services to clients in Japan, China, Vietnam, and the Philippines offering support in 12 languages including Japanese, English, Chinese, Spanish, Portuguese, Korean, and other Asian languages

Japan beckons businesses with its unique blend of tradition and innovation. With a skilled workforce, competitive resource costs, and regulatory stability, Japan offers fertile ground for driving business success and nurturing long-term partnerships.

As these changes take place in the Japanese market, enterprises need to adopt new digital technologies to embrace the growing uncertainty in the market. Service providers and technology partners have a critical role in facilitating this transformation. By integrating advanced solutions and offering robust operational support and a skilled talent pool, they can help businesses navigate the evolving business landscape. Collaboration between enterprises and service providers can prove beneficial for driving innovation and ensuring technological advancement in the Japanese market, which is ripe for CX disruption.

If you have questions or would like to further discuss Japan’s CXM evolution, please reach out to Sharang Sharma at sharang.sharma@everestgrp.com, Aishwarya Barjatya at aishwarya.barjatya@everestgrp.com, or Joshua Victor at gudala.victor@everestgrp.com.

Watch our Mid-market Digital Transformation: Insights and Outlook for 2025 webinar to learn best-practice recommendations for adopting newer technologies, based on our analysts’ recent experiences.

Consumer Issues

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