U.S. Contact Centers Hiring Remote Agents, Enhancing Workforce Management as Pandemic Disrupts Industry

Amid major disruptions caused by the global COVID-19 pandemic, the U.S. contact center industry is turning its attention to hiring remote agents, curbing increased attrition and better managing workforces, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

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The 2020 ISG Provider Lens™ Contact Center – Customer Experience Services report for the U.S. finds providers are placing more importance on employees’ health and investing in new technologies to train, monitor and motivate workers, including automated coaching, real-time performance dashboards and gamification.

“The transition to remote work is requiring big adjustments for agents and supervisors alike,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Workforces that were used to being under one roof and getting feedback in person are struggling with the loss of face-to-face interaction. This is likely to cause higher attrition, lower customer satisfaction or both.”

While dealing with this unexpected disruption, the U.S. contact center industry also is increasingly turning to Latin America for outsourcing opportunities, the report says. Expanding English proficiency in these countries, as well as a growing Spanish-speaking population in the U.S., have generated growing interest in the region. Guatemala, Honduras and Costa Rica are among the stars in attracting outsourcing projects, ISG says.

These trends are emerging against the backdrop of dramatic, global changes in consumer behavior triggered by COVID-19. Call volumes have soared in some industries, such as travel and insurance, and fallen in others, such as retail. In some cases, call wait times have increased exponentially and bandwidth issues in the home environment have led to disconnections and customer frustration.

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These issues have led consumers of all ages to turn toward digital channels such as social media and asynchronous messaging, with some software vendors reporting a 300 percent increase in the use of these channels versus traditional voice. Though triggered by the pandemic, these changes are likely to be irreversible, the report says. Faced with this rapid shift, companies have accelerated their adoption of omnichannel strategies to provide the best, most personalized customer experience in a bid to retain brand loyalty.

The pandemic has also heightened interest in cloud contact centers, which have become a priority even for legacy-heavy companies. Providers that have already adopted cloud platforms were able to quickly shift to work-from-home with minimal disruptions, the report says. Cloud data center solutions embedded with technologies such as analytics, artificial intelligence and machine learning can make it easier to provide more personalized, omnichannel experiences. Companies that use technology to deliver a better customer experience will be able to differentiate themselves in this space, ISG says.

The move toward remote work has increased the use of bring-your-own-device (BYOD) arrangements, which in turn has raised new security concerns. Companies are adopting several new technologies to strengthen work-from-home security, including facial recognition, voice biometrics, screen monitoring and robust use of VPNs, ISG says. AI is expected to play a growing role in enhancing remote security.

In addition, the pandemic has led to a sharp spike in the use of automation, which is becoming a necessity, according to the report. When agents were being shifted to the new remote work model, many companies turned to AI or chatbots to handle basic queries, and this gave them a great advantage. Most call centers now are looking to scale up their automation capabilities, ISG says.

The 2020 ISG Provider Lens™ Contact Center – Customer Experience Services report for the U.S. evaluates the capabilities of 21 providers across a single quadrant: Digital Operations.

The report names nine providers as leaders: Alorica, Concentrix, Conduent, HGS, Sitel Group, Sutherland, Teleperformance, TTEC and Wipro. Hexaware and Tech Mahindra were named Rising Stars—companies with a “promising portfolio” and “high future potential,” by ISG’s definition.

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