AI, Hybrid CX Models Strengthen Australian Contact Centers
MWN-AI** Summary
A recent report by Information Services Group (ISG) highlights the transformation of contact centers in Australia as enterprises increasingly adopt AI-enabled and hybrid customer experience (CX) models. The 2025 ISG Provider Lens Contact Center — Customer Experience Services report indicates that businesses are focusing on enhancing service quality by integrating new technologies within secure, compliant, and cloud-based operations.
Australian companies are transitioning from traditional cost-driven outsourcing to blended sourcing models that balance efficiency, quality, and cultural alignment. This shift is largely driven by the need for personalized customer interactions across multiple digital channels, influenced by rising consumer expectations. ISG’s director, Himanshu Chawla, notes that enterprises are embedding AI at every level of CX delivery, which enhances productivity while meeting evolving customer demands.
The report emphasizes the substantial benefits brought by generative AI applications in customer operations, enabling enhanced agility and accuracy. As AI technology evolves beyond pilot phases into production, it helps improve response times and customer satisfaction. Despite the progress, concerns remain regarding AI "hallucinations" and necessary transparency, especially in sensitive sectors like healthcare.
Additionally, hybrid models are gaining traction, blending onshore and nearshore centers to enhance both cost-effectiveness and data privacy. Strategic sourcing across locations such as New Zealand, the Philippines, and tier-2 Australian cities is becoming common, indicating a broader move toward flexible operational models.
Cloud platform modernization is also accelerating. Enterprises are consolidating technologies around robust platforms, facilitating improved communication and customer journey personalization. The report calls out the importance of human agents effectively handling complex interactions while leveraging AI for efficiency.
The report further details emerging trends in employee experience and outcome-based pricing models. Key players highlighted within the report include Acquire Intelligence, Concentrix, and Datacom, among others. Overall, the ISG report underscores a dynamic shift in Australian contact centers—integrating AI and hybrid approaches for a more effective customer experience.
MWN-AI** Analysis
As the Australian contact center sector evolves, enterprises are increasingly leveraging AI-enabled hybrid customer experience (CX) models to enhance efficiency, compliance, and service quality. The latest ISG Provider Lens report emphasizes a notable shift from traditional cost-centric strategies to blended sourcing models that prioritize quality, cultural compatibility, and technological innovation.
The integration of AI technologies—especially generative AI applications—has become crucial for enterprises seeking agility and improved customer satisfaction. By enabling functionalities such as real-time coaching and automated knowledge resources, companies can deliver faster response times and refined customer interactions. Enterprises must be cautious, however, regarding AI's reliability, particularly in sensitive domains like healthcare, ensuring that transparency and controllability of AI models are prioritized.
Hybrid delivery methods are also gaining popularity. Organizations are blending onshore contact centers with nearshore operations to optimize costs while maintaining security and compliance. This strategic sourcing approach not only promises improved service continuity but also nurtures customer trust, especially as cities in Tier 2 Australia and emerging nations like Fiji and Vietnam become viable locations for contact center operations.
In tandem with these trends, cloud platform modernization is accelerating. Companies are consolidating contact center technologies on platforms like Genesys Cloud and Amazon Connect, fostering unified communication channels. This alignment of AI, analytics, and workforce optimization is pivotal for enhancing customer journeys and achieving key performance metrics such as reduced handling times.
Overall, Australian enterprises that effectively harness these technologies can redefine customer engagement, balancing the benefits of automation with the indispensable human touch. This strategic approach positions organizations to adapt and thrive in an increasingly digital customer landscape, ensuring they meet evolving expectations while maintaining operational excellence.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Enterprises embrace new technologies for secure, compliant, cloud-based operations to enhance service quality, ISG Provider Lens ® report says
Companies in Australia are accelerating their adoption of AI-enabled and hybrid contact center models to improve efficiency, compliance and customer experience, according to a new research report published today by Information Services Group ( ISG ) (Nasdaq: III ), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens ® Contact Center — Customer Experience Services report for Australia finds that enterprises are modernizing operations to meet rising expectations for personalized interactions that seamlessly flow across multiple digital channels. Companies are moving from cost-focused outsourcing toward blended sourcing models that combine efficiency with quality and cultural alignment.
“Australia’s contact center transformations are marked by the convergence of AI adoption, increasing regulation and continuing need for cost efficiencies,” said Himanshu Chawla, director at ISG. “Enterprises are embedding intelligence into every layer of CX delivery to enhance productivity while meeting evolving customer expectations.”
Australian enterprises are integrating AI into customer operations to enhance agility and accuracy, the report says. Generative AI (GenAI) applications such as chat summarization, real-time coaching and automated knowledge tools are delivering measurable benefits in speed of response and customer satisfaction. These systems are now moving from pilot phases to production-level adoption, enabling consistent service outcomes across high-volume channels. However, ISG says enterprises remain cautious about AI hallucinations and the transparency and explainability of models, especially in sensitive sectors such as healthcare and government.
Companies are also embracing hybrid delivery models that balance cost efficiency with data sovereignty, ISG says. Many enterprises are blending onshore centers with nearshore operations in New Zealand and the Philippines, seeking proximity and English proficiency, while maintaining security and compliance. Tier 2 Australian cities and countries such as Fiji and Vietnam are also emerging as strategic locations for cost optimization. This shift reflects a broader move toward flexible sourcing that supports service continuity and customer trust.
Cloud platform modernization is also accelerating, the report says. Australian enterprises are consolidating contact center technologies around scalable platforms such as Genesys Cloud, Amazon Connect and Microsoft Dynamics to streamline operations and unify communication channels. This integration of AI, analytics and workforce optimization helps companies personalize customer journeys, reduce average handling times and improve first-call resolution rates.
“Enterprises in Australia are redefining customer experience by combining digital innovation with empowered human interaction,” said Hemangi Patel, senior manager and principal analyst, ISG Provider Lens Research, and lead author of the report. “The most successful organizations are those that implement effective automation while ensuring human agents are prepared to handle more complex, high-value interactions.”
The report also explores other trends in the Australian contact center market, including rising investment in employee experience tools to support agent well-being and the shift toward outcome-based provider pricing models linked to measurable customer outcomes.
For more insights into the CX and contact center–related challenges faced by enterprises in Australia, plus ISG’s advice for overcoming them, see the ISG Provider Lens ® Focal Points briefing here .
The 2025 ISG Provider Lens ® Contact Center — Customer Experience Services report for Australia evaluates the capabilities of 27 providers across two quadrants: Digital Operations and Intelligent Operations.
The report names Acquire Intelligence, Concentrix, Datacom, Foundever, Probe Group, Tech Mahindra, TP and TSA as Leaders in both quadrants. It names Genpact, TTEC and WNS as Leaders in one quadrant each.
In addition, Genpact and HCLTech are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
In the area of customer experience, Konecta is named the global ISG CX Star Performer for 2025 among contact center service providers. Konecta earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program , the premier quality recognition for the technology and business services industry.
The 2025 ISG Provider Lens® Contact Center — Customer Experience Services report for Australia is available to subscribers or for one-time purchase on this webpage .
About ISG Provider Lens ® Research
The ISG Provider Lens ® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage .
About ISG
ISG (Nasdaq: III ) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20251029645892/en/
Press Contacts:
Laura Hupprich, ISG
+1 203-517-3100
laura.hupprich@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
FAQ**
How does Information Services Group Inc. III anticipate the integration of AI in contact centers will evolve in Australian enterprises over the next few years?
What specific benefits are enterprises experiencing by adopting hybrid contact center models as outlined by Information Services Group Inc. III in their latest report?
According to Information Services Group Inc. III, what are the main concerns enterprises have regarding AI transparency and compliance in sensitive sectors like healthcare?
How do the rising investment trends in employee experience tools, as noted by Information Services Group Inc. III, correlate with overall improvements in customer service outcomes?
**MWN-AI FAQ is based on asking OpenAI questions about Information Services Group Inc. (NASDAQ: III).
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