Gartner

25/5/2016 Gartner Reprint
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Magic Quadrant for Customer Management Contact Center BPO
28 January 2016 | ID:G00273869
Analyst(s): TJ Singh, Misako Sawai, Brian Manusama
Summary
Gartner's Magic Quadrant for customer management contact center business process
outsourcing services evaluates a vibrant provider landscape. Sourcing managers need to
know that the provider landscape is changing due to evolving technology, economic
conditions and customer needs.
Market Definition/Description
Gartner defines business process outsourcing (BPO) as the delegation of one or more IT-
enabled business processes to an external provider that, in turn, owns, administers and
manages the processes and agreed-upon outcomes based on predefined performance
metrics. Outsourced processes include knowledge-based processes, as well as transactional
ones, include the support and administration of front-, middle- and back-office activities, and
address all levels of predefined volumes. Almost any business process or part thereof can be
awarded to a BPO provider, and oftentimes, the boundaries are regularly widened to include
more, and more-sophisticated, processes. Entire processes or discrete subprocesses can be
outsourced in order to form end-to-end, comprehensive service arrangements.
BPO providers aim to offer buyers increased efficiency, decreased cost, greater
standardization, operational scalability, and higher quality of process activity by reducing or
eliminating human labor through application of their domain expertise, process
methodologies (such as for process redesign or transformation) and often (but not always)
multiclient management. BPO services may incorporate access to domain or functional
experts, process engineers and project management staff in addition to the technology for
administering the processes. In most cases, the inherent risk and responsibility associated
with the delivery of the outsourced processes (and agreed-upon outcomes) belong to the
service provider, but this is not always the case; these responsibilities are outlined in the
contract's statement of work.
Providers' foundational software platform and their process enhancement technologies and
services (PETS — please see "Achieving Excellent Business Outcomes via Business Process
Outsourcing and Captive Shared-Service Centers" ) can include proprietary, purchased third-

party or freely available software, and often a combination of all three types. Additionally, BPO
services are sometimes combined with IT outsourcing (ITO) services by a single provider in
order to reduce the total cost through a combined offering.
Customer Management Contact Center BPO Deﬁned
Customer management (CM) contact center BPO, which comprises the processes linking an
organization with its existing and potential customers, can be categorized in four
subsegments:
Customer selection
Customer acquisition
Customer extension
Customer retention
The above four subsegments are normally executed across the following four primary
channels:
Telephony, inclusive of voice and interactive voice response (IVR) self-service
Email response management, SMS, text services and mobile applications
Web chat and social CRM services
Knowledge management for Web-based self-service
Customer Selection
Customer selection BPO services include the following: market segmentation and data
analysis (including the collection, management, augmentation, analysis and application of
customer data in support of marketing and sales efforts); campaign design and
communication planning (including media campaign creation, integration, deployment,
tracking and measurement); and other customer selection (including testing, brand planning,
account/territory planning, product introduction and other customer selection functions not
included in the above categories).
Customer Acquisition
Customer acquisition BPO services include telesales, telemarketing, Web sales, Web
marketing, mobile sales, mobile marketing, social marketing (including crowdsourcing
platforms), lead management/opportunity management and ﬁeld sales automation.
Other customer acquisition includes direct mail campaign management, channel
management, proposal generation, solution design, negotiation, deal closing and other
customer acquisition functions that are not included in the above categories.
Customer Extension

Customer extension BPO services encompass customer upsell/cross-sell, which includes
identifying existing products and services purchased by a customer and using that
information to influence the purchase of associated products and services across all
channels — voice, Web chat, email, Web self-service, mobile apps, social CRM (including
crowdsourcing platforms), business process as a service (BPaaS), customer data analytics to
support customer service and support processes, and other sales, marketing and customer
care processes. Other customer extension services include the need for reassessment,
campaign management and other customer extension functions that are not included in the
above categories.
Customer Retention
Customer retention BPO services include customer service processes for inquiry
handling/problem resolution, field service automation and customer self-service functions.
Inquiry handling and problem resolution includes managing customer concerns either
through outbound or inbound communications over the telephone, Internet or mobile devices
or face-to-face. Field service automation includes managing personnel resource allocation,
communication of problem tickets, diagnostics, spares inventory and preventive maintenance
in the field service and repair organization. Other customer retention includes order
management, repair and return handling, attrition management, and other customer retention
functions that are not included in the above categories.
For the purpose of this Magic Quadrant research, Gartner assessed 22 service providers that
offer comprehensive CM contact center BPO service offerings. Customer-facing processes
that providers offer come from across all four subsegments that make up CM contact center
BPO.
Excluded from this research are:
Accounts receivable management (collections).
HR or other enterprise services (for example, payroll, recruitment or benefits
administration).
Field sales automation — This includes management and administration of face-to-face
interactions between sales teams and clients. The four types of field sales models are:
influencer (using industry experts); opportunity-driven (primarily used for large-value
products); project-driven (used for selling professional services); and iterative (based on
ongoing relationships, such as consumer packaged goods).
Magic Quadrant
Figure 1. Magic Quadrant for Customer Management Contact Center BPO

Source: Gartner (January 2016)
Vendor Strengths and Cautions
Aegis
Aegis is ranked as a Challenger in this year's report. Aegis has worldwide CM contact center
BPO revenue of approximately $500 million. Headquartered in India, the company has an
estimated 40,000 employees based in 43 centers across nine countries, with the majority
(70%) based out of India. After the sale of Aegis' U.S. business to Teleperformance, it has a
remaining head count of 40,000 across its centers. Aegis is wholly owned by Essar, a $35
billion diversiﬁed business conglomerate. Aegis' primary focus is on multichannel CM and
vertical industry markets, including telecommunications, ﬁnancial services, healthcare, energy
and utilities, retail and consumer goods, and travel and hospitality.

Aegis continues to have an aggressive organic and inorganic growth strategy. It plans to use
the money raised from the sale of its U.S. business to make more acquisitions in Asia, Africa,
Latin America and the Middle East. This is in line with its strategy to grow higher-margin
businesses. Aegis considers telecom and banking, financial services and insurance (BFSI) as
its key verticals for growth. However, the company is also investing in emerging verticals
such e-commerce, government and travel. It also plans to increase its share of nonvoice
business from current 25% to 40% or 45% within the next few years. Aegis has sizable IT
services capabilities — Enterprise Business Services, which can provide the necessary
technology capabilities and assets needed across Asia/Pacific. The company has invested in
digital and social media business engagement and solutions through its product — Aegis
LISA . The company is also looking at including CM analytics as one of the key imperatives
for its BPO engagement and contracts.
STRENGTHS
Aegis continues to strengthen its presence and capabilities in key markets such as
Asia/Pacific and EMEA. Aegis has invested $4 million in a new center of excellence in
Melbourne, Australia, which focuses on analytics, social media and multilingual capabilities
to support customers from multiple industries across their CM value chain.
Aegis leverages digital media platforms and customer experience analytics, which have
enabled it to provide high levels of customer experience to its clients. The company also
has a strong IT and technology division — Enterprise Business Services.
Some clients cite strong operational management, a focus on relationship (having a
consultative and partnership approach), responsiveness, flexibility when dealing with client
issues, project management skills, and value for money as key strengths.
CAUTIONS
Aegis has a limited presence in North America due to the sale of its U.S. business
(including the Philippines) to Teleperformance. Global clients that require significant
onshore presence for service delivery in North America may face some challenges.
The company needs to invest more in thought leadership and consulting capabilities to
supplement its centers of excellence. The company needs to further grow its multichannel
service capabilities — for example, the development of customer experience hubs.
Some clients cite an inconsistent approach to training and governance — governance
structures, the sharing of innovation and benefits thereafter, succession planning, limited
knowledge management, and analytics services — as key concerns.
Alorica
Alorica is ranked as a Leader in this year's report. U.S.-based Alorica provides end-to-end CM
outsourcing solutions, including customer acquisition and sales, customer care and technical
support, logistics, and fulfillment. Alorica's outsourcing services cover both the business-to-
n

consumer and business-to-business segments across the following vertical industries:
automotive, energy and utilities, financial services, government services, communications,
retail, healthcare and insurance, manufacturing, travel and transportation, and technology.
The company employs over 48,000 across 73 locations in the U.S., Honduras, Brazil, the
Dominican Republic, Mexico, Jamaica and the Philippines. The company's recent acquisition
of West's agent service businesses with annual revenue of $580 million will bring the
combined annual revenue of the company to more than $1.2 billion.
As part of its strategy to consolidate its position in the contact center business, Alorica
acquired West's agent service businesses at the beginning of 2015. The acquisition will help
enhance Alorica's capabilities in healthcare solutions and receivables management. Alorica
will also benefit with more than 5,000 work-from-home agents crucial for just-in-time staffing
for rapid deployments or unpredictable volumes.
STRENGTHS
Alorica has long-term engagements with its clients and an employee base that has further
solidified due to the acquisition of West's agent service businesses. Its leadership team has
historically strong vision and execution capabilities, even further enhanced with the
addition of two new executives this year and the gain of executive talent with tenure and
experience as a result of the acquisition.
With the West agent service acquisition, the company benefited from a Center of Analytical
Excellence with capabilities including data mining, predictive modeling, operations
research, and advanced analytics using statistical algorithms. The company can leverage
these capabilities to augment its service portfolio by wrapping around its core offerings or
develop them as stand-alone offerings to create an all-new revenue segment.
Some clients cite strong leadership with a partnership approach to client management,
highly trained and engaged staff, scalability, flexibility, industry knowledge, focus on quality
and training, consistent service delivery across sites and readiness for change as key
strengths.
CAUTIONS
Though Alorica is investing in new geographical locations in the Caribbean, South America
and Asia/Pacific, the company continues to maintain focus and concentrate on North
America. European-based clients may have limited service delivery options.
Clients must be aware and manage any risk (such as IT, operational and business process)
to their business, especially during the integration period. As with any large merger and
acquisition (M&A) transaction, there is always a risk associated with business integration.
Alorica has deployed a dedicated internal project team to help manage the business risk to
clients with frequent communication to both employees and clients.

Some clients cite limited global presence (Europe and Asia/Pacific), responsiveness,
limited bilingual language capabilities, limited consulting capabilities (Six Sigma/lean) and
change management, and project implementation as key challenges.
Atento
Atento is ranked as a Leader in this year's report. Atento is the largest CM BPO company in
Central and Latin America — by head count (full-time equivalent [FTE] employees) — and is
continuing its strategy effectively. With a strong growth strategy, it strengthened its market
leader position. The company now employs more than 160,000 employees across 98 centers
in 14 countries in Europe, Africa, and Central and Latin America. The company has a highly
experienced management team that unites long-term experience in the sector with local
talent and know-how. During the transition to become an independent company, Atento has
built a world-class management team. It has a mandate to focus on growth, including in
nontraditional markets, such as the U.S. nearshore market, and in new service and solution
offerings, such as multichannel and analytics services. This focused strategy and disciplined
execution is driving consistent above-market growth, improved profitability and a stronger
balance sheet.
Atento has a large client base of more than 400 corporations and governments, most of
which are based in emerging markets. Its focus is on industries such as communications,
banking and financial services, utilities, government, retail, and travel and transportation.
Atento also is capable of having a maintained people focus as a competitive element, which
resulted in recognition for the fifth consecutive year as one of "The Best Companies to work
for in LatAm" and the only CM BPO company to be recognized as one of "The World´s Best 25
Multinational Workplaces" by Great Place to Work for three years in a row.
STRENGTHS
Atento consolidated a leadership position in its key markets. Its growth rate, scale and
leadership position in Latin America drives further industry consolidation, as evidenced by
Atento overtaking Contax in 2014 to become the top service provider in Brazil in market
share terms. It is uniquely positioned to capitalize on current market and industry
dynamics.
Atento leverages its long-term relations with its clients, and the company adopts a
consultative sales methodology when positioning value-added multichannel and analytics
services. Atento shows initiative to adapt to business dynamics, increasingly providing self-
service, automation and optimization of CRM processes. Atento understands that the
customer needs to provide multichannel integration in order to provide higher levels of
customer experience.
Several clients cite service delivery experience, market and industry knowledge,
management capabilities, time to market, agility, flexibility, focus on results, project
execution, and the ability to scale (scalability) as key strengths .
CAUTIONS

CAUTIONS
Atento continues to have a relatively high level of vertical/industry concentration. Also,
despite the clear growth focus on the U.S., a significant portion of Atento's service delivery
capacity and offerings are positioned for the Spanish- and Portuguese-speaking markets.
Atento also has high client concentration — the company generates 82.1% of its revenue
from the top 15 customers, with 46.5% from Telefónica Group alone.
Some clients cite high attrition and absenteeism, limited innovation and sharing of new
capabilities, response time, speed to adopt changes, and limited capability in complex
technology integration as key cautions.
Concentrix
Concentrix is ranked as a Leader in this year's report. Concentrix, a wholly owned subsidiary
of Synnex, has operations across 25 countries, with approximately 90 delivery centers. It has
more than 70,000 employees servicing more than 300 clients in more than 40 languages. The
company has a large delivery footprint in India, the Philippines, Europe, Asia/Pacific, North
America and South America. Concentrix has expertise in 10 industries and offers enhanced
capabilities in advanced analytics, enabling technologies and nonvoice services. Concentrix
delivers services by voice, mobile, social and Web chat across multiple geographies.
The company operates with a holistic view that includes all customer touchpoints in a
multichannel (omnichannel) approach. Concentrix focuses on the following industries:
banking and financial services, healthcare and pharmaceutical, insurance, technology,
consumer electronics, retail and e-commerce, government and public sector, media and
communications, automotive and travel, transportation and tourism.
STRENGTHS
Concentrix continues to leverage its strong and extensive vertical/industry capabilities,
process knowledge and skills, and global reach to transform and optimize operations
across the customer life cycle. The company also delivers strategic insight, and extensive
operational expertise to help clients achieve their customer experience objectives and
realize tangible results.
The company continues to demonstrate its ability to deliver digital and multichannel
nonvoice services, automation and analytics services as it continues to acquire new clients.
Some clients cite strong management, flexibility, partnership approach, ability to scale, and
focus on quality as key strengths.
CAUTIONS
Although a lot of progress has been made, Concentrix is still growing in recognition and
brand equity among CM contact center BPO clients, especially in the small or midsize
business (SMB) market.

The company needs to continue its investment in thought leadership, consulting, change
management, centers of excellence, and CM BPaaS to help deliver new and innovative
services to clients.
As key cautions, clients cite leadership development with a specific need to invest more in
learning and development; infrastructure; technology and software (technical) support
capabilities; and service consistency.
Convergys
Convergys is ranked as a Leader in this year's report. Convergys is one of the largest CM BPO
companies, with revenue of over $3 billion and 125,000 employees working in more than 150
service centers in 31 countries. The company has clients in all the key countries in the
Americas, EMEA and Asia/Pacific. Its recent acquisition of Stream Global Services has
expanded the company's geographic footprint and service capabilities, and has added
approximately 40,000 employees in 22 countries.
Convergys operates in four business segments: communications, technology, financial
services and the "others" segment. The company is expanding its already sizable business in
the financial services, healthcare and retail sectors with the signing of several new customer
contracts in 2015. Convergys is delivering quality customer experiences with the help of its
75 contact centers in the U.S., the Philippines, India, Costa Rica, Colombia, Canada, the U.K.
and other international markets.
STRENGTHS
Convergys continues to expand as a company with continual workforce hiring at various
locations, such as Costa Rica, the Philippines, Phoenix and other locations, enabling the
company's strategy toward strengthening human resource capabilities. The acquisition of
Stream has helped the company to strengthen its technology service business and has
been successful in bridging the geographical concentration in Europe and the Latin
American market.
Convergys is entering into various partnerships to expand its analytical capabilities. Its
recent partnerships with Clarabridge to expand text analytics and with Nexidia for its
customer interaction analytics technology solutions signify the growing analytical focus of
the company. The company has also introduced a proprietary, embedded analytics
outcome accelerator solution.
Some clients cite speed of implementation, ability to scale, responsiveness, flexibility,
global presence (assets and locations), strong methodologies, and engaged senior
management with a partnership approach as key strengths.
CAUTIONS

Convergys continues to have a high level of client concentration — its top three clients
collectively represented over 31% of the revenue. Consistent with the majority of the
industry, the company also has a high vertical/industry concentration in communications —
approximately 55% of the company's revenue. The recent acquisition of Stream has brought
with it a broad client and industry base.
The company has strong legacy in IVR and analytics services and has continued to develop
its offerings and capabilities in this area that respond to client demand. However, the
company needs to continue to invest in enhancing its digital and analytics capabilities in
the areas of multichannel, automation (such as virtual assistance), thought leadership and
consulting capabilities (centers of excellence, CM BPaaS and advanced analytics services)
to help deliver new and innovative services to clients.
Some clients cite agent attrition, sharing of best practices and innovation across all clients,
higher unit cost of service, French nearshore limited to Tunisia, and the ability to attract and
retain top talent as key cautions. Gartner is, however, aware that the company has attracted
several senior employees with significant industry and vertical experience during 2015.
EGS
Expert Global Solutions (EGS) is ranked as a Leader in this year's report. EGS has revenue of
approximately $1.1 billion from BPO services. The company employs over 40,000 FTE
employees — including 750 work-at-home (WAH) agents — who are dedicated to BPO
services across more than 70 contact center locations in 11 countries. EGS focuses on five
elements: maintaining a strong client mix across multiple vertical markets; remaining a
preferred Tier 1 provider; expanding globally in key markets (onshore, nearshore and
offshore); having a strong financial position; and being recognized as a leader in the BPO
market.
From an industry perspective, EGS focuses on technology, communications, financial
services, retail, travel and transportation, utilities, healthcare and pharmaceuticals. EGS is a
strong CM contact center BPO service provider in the healthcare market. The company has
invested heavily in assets and capabilities in healthcare, with a strong focus on pharmacy
technician (pharm tech) and pharmacist positions in support of pharmacy benefits managers
(PBM). This is in addition to the two licensed nondispensing pharmacies the company
currently operates. In 4Q15, EGS made significant investments in its Customer Experience
Transformation (CxT) consulting practice, formalizing a team of client-facing consultants and
the implementation of automated technology tools.
STRENGTHS
EGS has made significant investments in its global delivery capabilities across three key
markets — Philippines, Latin America and the U.S. These strategic investments, supported
by colocated senior management and new Tier 3 data centers, enable clients to broaden
their geographic diversity while maintaining quality and cost-effectiveness.

The company is expanding and investing in innovative offerings centered around digital,
multichannel, automation and analytics services, including its Customer Experience
Transformation (CxT) methodologies, multichannel self-service capabilities focused on
transitioning contact volumes to cost-effective, nonvoice channels, and integrated
multichannel solutions and services deployed across customer engagement centers.
Some clients cite a strong leadership team, agility and flexibility, focus on clients, easy
access to management, scalable solutions and services, and a sense of partnership as key
strengths of EGS.
CAUTIONS
EGS is improving with the addition of new clients and a focus on vertical diversification, but
it has a high level of concentration in the telecommunications and healthcare sectors,
although the risk is spread across dozens of customers. The company also has limited but
growing thought leadership and CM consulting capabilities — especially with the recent
investment in its Customer Experience Transformation (CxT) consulting practice.
The company has a high geographical concentration in North America, but it continues to
grow its market visibility and brand awareness outside the U.S. Also, EGS is still heavily
focused on voice — over 85% of its total revenue, as its primary contact channel. With its
current strategy and investments, the company needs to aggressively increase the
nonvoice service revenue.
As key cautions, some clients cite agent attrition, IT infrastructure and technology
implementation thought leadership, account management turnover, and the lack of
marketing services.
Firstsource
Firstsource is ranked as a Niche Player in this year's report. Firstsource is the leading CM
contact center BPO service provider based in India. The company is part of the diversified RP-
Sanjiv Goenka group. The company has a revenue of approximately $500 million with over
25,000 FTE agents across 46 centers in five countries providing services to over 100 clients.
Firstsource is focused on the following key vertical/industry sectors: telecommunications
and media; banking and financial services; insurance; healthcare; and publishing. The
company currently has sizable operations in India, the Philippines, Sri Lanka, the U.K. and the
U.S. The company has invested and built key CM BPaaS offerings in Web chat, analytics and
automation services, such as First Chat, First Customer Intelligence and First Smartomation.
The company's Web chat and digital services are supported by over 1,000 agents dedicated
to U.K. and U.S. clients. Results include Firstsource's innovative digital-community-based
proposition for a telco client that reduces agents required by over 70%.
STRENGTHS

The company has deep industry and process knowledge specific to the banking, financial
services and insurance (BFSI) sectors. The company continues to grow its brand
awareness and brand affinity in key markets, such as the U.K. and North America.
Firstsource has an extensive voice-based service offering for CM contact center BPO
services, and it continues to invest in multichannel and social CRM services. It has a unique
set of platform offerings such as First Chat, First Customer Intelligence, First
Smartomation, First Resolve and First WF Suite.
Some clients cite good responsiveness, strong Web chat capabilities, good cultural fit, good
functional capabilities, fast turnaround time for issues and good program management
capabilities as key strengths of Firstsource .
CAUTIONS
The company's primary focus is on Asia/Pacific, North America and the U.K. Besides local
language support in India, the company's focus elsewhere is only on English-language-
based services; it has limited scale in other languages.
The company has a high level of vertical/industry concentration in communications and
BFSI, and disproportionately high levels of client concentration in North America and
Europe. Losing one of these clients could have a financial impact on the company; it is
investing in sales to expand its client base.
Some clients cite cost of service, ability to be proactive in recommending process
improvement and limited geographical presence as key cautions.
FIS
FIS is ranked as a Challenger in this year's report. The company's CM contact center BPO
business has revenue of over $600 million and employs more than 19,000 CM contact center
BPO employees who support clients from locations across North and Latin America, Europe,
India and the Philippines. FIS offers CM contact center BPO services as a stand-alone service
offering or as part of a bundled BPO and IT outsourcing offering that gives the company the
ability to provide end-to-end solutions.
Its CM contact center BPO services include marketing, sales, customer service and support.
The company has developed a proprietary analytics platform — the FACTs Store — which
focuses on improving brand, reducing operating expense and increasing revenue and also
deploys a holistic learning management solution — FIS Learning Integrated Performance
Suite (FLIPS). The tools and methodologies delivered on the platform include Evangelize and
OneView to help clients deliver intelligent and consistent services that improve customer
experience.
The company has continuously invested in digital service consulting capabilities to assist
clients to go through their digital journey while remaining competitive and scaling their
business. The company generates a significant portion of its revenue from the following

vertical industries: banking and financial services, communications, retail and healthcare. FIS
leverages its deep domain expertise and footprint in digital and multichannel services and
has signed numerous new agreements concentrated on providing digital services. FIS's
digital BPO practice is focused on delivering seamless digital and multichannel service
customer experiences. The company continues to grow domain and process expertise,
leveraging its strong and extensive capabilities and process transformation skills.
STRENGTHS
FIS has a strong financial and cash-flow position and good client concentration — only 5%
of its total revenue is derived from its top five clients. FIS revenue from digital,
multichannel, automation and analytics services is approximately 40%, making the
company one of the leading providers of nonvoice CM contact center BPO services.
FIS focuses on delivering innovative solutions to its clients and has invested in resources,
technologies and partnerships to enhance BPO capabilities with new offerings such as
customer interaction analytics (predictive and prescriptive), digital consulting, robotic
process automation and learning management solutions.
Some clients cite key strengths in security capabilities, domain and industry expertise,
agility, service flexibility, responsiveness, timeliness (including rapid deployment services),
and the ability to lead and advise on digital and multichannel services.
CAUTIONS
FIS currently has limited presence and brand recognition in the EMEA and Asia/Pacific
markets, with more than 85% of its revenue concentrated in the Americas. The company
also has a disproportionately large industry concentration in financial services — nearly
70% of its CM contact center revenue comes from the banking and financial industry.
The CM contact center BPO business unit currently contributed under 10% of the group's
revenue but maintains nearly 50% of the group's FTE staff. The level of investment made
into this business is important to clients, as it shows the commitments to innovation and
new offerings to help clients. This may be strained over time as the FIS group looks to
improved margins as a key consideration for future investments.
Clients cite agent training and development, agent attrition, ability to formalize client
governance structure, lack of onshore delivery capacity in Europe, price flexibility, change
management and technical capabilities (CRM solutions) as key cautions.
HGS
HGS is ranked as a Niche Player in this year's report. HGS, a member of the Hinduja Group of
companies, is a business process management (BPM) service provider with an approximate
revenue of $458 million. It delivers customer services in 12 countries. In the 60 centers, the
company employs more than 29,000 contact management workers. The company has a fast-
growing footprint in North America and India, with nearly 45% of the business revenue

originating from North America. HGS operates the services mainly in four sectors: healthcare
and insurance; financial services; telecommunications; and consumer goods. HGS is
investing heavily in the "agent anywhere" proposition and focuses strongly on providing
excellent customer experience through its multichannel strategy — unified channel strategy.
The company has a keen interest in expanding to Latin America and the Middle East in the
near term and is expected to continue with acquisitions to strengthen its presence in new, as
well as in existing, markets.
The company continues to invest significantly in acquisitions across verticals/industries. The
acquisition of Colibrium, a cloud-based sales, service and wellness automation platform,
brings in complementary platform and servicing capabilities in the sales and enrollment area
for the U.S. and global health insurers. Health insurance plans using the Colibrium platform
will be 30% to 40% more efficient in acquiring new members and providing services over the
course of the customer life cycle. Similarly, the acquisition of Mphasis' India domestic BPO
business strengthens HGS's presence in India by adding newer service capabilities and
clients in the telecom and banking, financial services and insurance (BFSI) sectors.
STRENGTHS
HGS continues to invest in services such as digital, multichannel and analytics services that
provide cutting-edge revenue-generation models. This is evident with the recent acquisition
of Colibrium, a cloud-based sales, service and wellness automation platform, specifically
targeted for U.S. and global health insurers.
HGS maintains continued traction in the healthcare segment. The company is expected to
benefit significantly from the healthcare reforms in the U.S. due to its strong domain
expertise in the vertical and all round presence in entire healthcare value chain.
As key strengths of HGS, some clients cite responsiveness, focus on customer experience,
ability to scale, strong leadership, speed to market, ability to staff quickly, focus on cost,
flexibility and receptivity to feedback.
CAUTIONS
HGS shows an unbalanced and high customer concentration with the top 10 clients
contributing 62% of its total revenue, and more than 77% of its revenue derived from the top
20 customers. The company also has high industry concentration in the communications
and healthcare-related markets — approximately 60% of the total revenue derived from both
these industry sectors. The risk to clients due to high levels of client and industry
concentration, though minimal, should still be assessed by clients.
The company needs to invest more in thought leadership and consultative selling
capabilities as it looks to enhance its digital, multichannel services, as well as engage new
buying centers and develop new business models. Clients looking for a provider that will
help them innovate and provide thought leadership in customer experience need to assess
this caution.

Some clients cite limited sharing of technology and process innovation, internal IT
capabilities and assets, ability to execute on client governance models consistently,
consistency in training, and quality of service as key challenges.
HPE
Hewlett Packard Enterprise (HPE) is ranked as a Challenger in this year's report. HPE offers a
wide portfolio of BPO solutions focused on business improvement to clients in various
regions across the world. Gartner estimates HPE's CM contact center BPO revenue at
approximately $700 million. The company employs more than 23,000 agents offering sales,
marketing and customer care services through 100 global contact centers across 34
countries serving 51 languages, specifically for its CM BPO business. HPE's sweet spot is in
CM BPO engagements that are focused on digital content and those that require
"transformation services" — typically in industries such as healthcare, retail, travel and
transportation, financial services, consumer products, and communications.
The company targets CM contact center BPO deals that are large in scale and require support
of highly complex CM business processes, such as attitudinal, behavioral and demographic
segmentation services, and a multichannel integration platform for marketing, sales,
fulfillment and customer-service-based processes. HPE's alliance with Avaya provides
exclusivity in cloud customer experience delivery technology. HPE also recently acquired
approximately 1,100 employees from Avaya Private Cloud Services to provide solutions to the
marketplace.
In 2015, HPE invested significantly in upgrading its BPO leveraged platform to an industry-
leading multichannel (omnichannel) set of capabilities, including automated and human chat,
live agent video, callback assist, proactive marketing, and enhanced social capabilities. HPE
now promotes that its agents are supplied with best-in-class omnichannel technologies when
servicing customers. Also in 2015, HPE significantly upgraded its Transformation and
Advisory Practice to provide strategic CM solutions to clients that leverage HPE's legacy
strength in analytics and big data.
STRENGTHS
The HP spin-off into HP Inc. and HPE is expected to be beneficial to the HPE business,
more specifically the BPO service business, as it will provide additional resources and a
reduction of debt at the operating company level, allowing the business to focus and
further invest in the BPO services business — such as PETS, automation and advanced
analytics. The separation will also allow for greater flexibility in completing the turnaround
of HPE and strengthen the company's CM BPO go-to-market capabilities.
HPE offers a broad range of contact management services. The company has a large
customer base, and it continues to expand its multichannel, analytics (including its rapid
analytics prototyping capabilities), BPaaS, and social for CRM offerings for its existing and

new client base. HPE currently offers advisory and transformation services focusing on
advanced customer analytics, with approximately 3,600 analytics professionals and 1,200
data scientists.
Some clients cite responsiveness, skilled staff/agents and deep domain expertise as key
strengths for HPE. The company continues to address specific customer problems through
focused use of technologies, vertical industry process expertise and best practices.
CAUTIONS
HPE's CM contact center BPO services have limited brand recognition even within the
company's existing large customer base. CM contact center BPO service cross-sell and
upsell opportunities across HPE's business units are still relatively low.
The company continues to grow its digital, nonvoice multichannel services, analytics and
social CRM offerings. However, it is still well behind the industry average.
Some clients cite PCI compliance management, somewhat reactive and slow to respond to
client needs, communications within management, relatively slower time to market, high
cost of services and limited price flexibility as key cautions.
Intelenet
Intelenet is ranked as a Challenger in this year's report. Intelenet, backed by Blackstone, is a
$450 million revenue company with more than 55,000 employees serving clients in the U.K.,
India and North America from 62 centers across eight countries. The company provides
middle- and back-office services across customer contact, transaction and financial
processing, and related consulting and technology services. Intelenet conducted more than
90 million multichannel interactions in 40 languages worldwide, apart from managing 600
million calls and 60 million back-office transactions. Blackstone acquired most of Serco's
private-sector BPO operations from Serco in late 2015 and rebranded the acquired business
as Intelenet.
The company focuses on the following vertical industries: government, travel and
transportation, communications, media, retail, and financial services. Intelenet continues to
expand its client and geographical concentration and plans to expand significantly into digital,
nonvoice multichannel, analytic and marketing services.
STRENGTHS
Intelenet has extensive service offerings and a proactive approach to client relationship and
change management. The company strives to improve oversight, such as increasing the
frequency and transparency of customer engagement, and it continues to invest in formal
oversight of delivery of contractual commitments.
The company has a strong presence in the government and banking and financial services
sectors, with deep vertical-industry and process knowledge capabilities. Intelenet is
currently a leading CM BPO provider in the India and Middle East markets and is expanding

its presence in the U.S., U.K. and European markets.
Some clients cite industry expertise (especially government related), flexibility,
responsiveness, transparency, and process expertise as key strengths. Note: These
strengths were cited for the former Serco organization.
CAUTIONS
Intelenet has limited geographical presence and brand awareness outside the U.K., North
America, South Africa, India, Saudi Arabia, the United Arab Emirates and the Philippines.
The company has a high vertical-industry concentration in the government sector (U.K.),
transportation (U.S.) and communications (Asia/Pacific), as well as high client
concentration in the U.K. and North America.
As key cautions, some clients cite limited geographical presence, internal bureaucracy
(legal), timeliness (meeting project schedules), and consistency in service quality. Note:
These cautions were cited for the former Serco organization.
Minacs
Minacs is ranked as a Niche Player in this year's report. Minacs is a key CM BPO solution and
service provider in North America with a strong presence in the automotive sector, as well as
in other manufacturing, retail, telecom, technology, media and entertainment, banking,
insurance, healthcare, energy, and public sectors. The company has an estimated revenue of
over $450 million supported by over 21,000 FTE employees across 35 centers in 41
languages across North America, Europe and the Asia/Pacific region delivering sales,
customer service and support, marketing, and back-office solutions and services with a keen
focus on customer experience.
The company is growing its focus on analytics to better understand the consumer dynamics
and engage accordingly. It has recently integrated with an analytics firm, Ananto, to
strengthen its business intelligence capabilities.
STRENGTHS
The company has a new but experienced leadership team with strong capabilities and track
record in CM contact center BPO services. Minacs also has a good and expanding mix of
onshore and offshore service delivery capabilities and assets across North America,
Europe and Asia/Pacific.
The company is growing and strengthening its focus and asset base in analytics solutions
and services — such as ALT CRM, with its recent acquisition of Ananto. The company is
also growing its digital, multichannel and social marketing capabilities.
Some clients cite responsiveness, flexibility, program management skills, domain
knowledge, strong leadership and relationship management, and strong ability to develop
and deliver training as key strengths.
CAUTIONS

CAUTIONS
Minacs has a large vertical/industry and client concentration in the automotive sector.
Currently just over half of its revenue comes from the automotive sector. It also has a small
client base in Europe.
Minacs' consulting and thought leadership capabilities and assets, including consultative
selling capabilities, are limited. The company needs to invest more in thought leadership,
digital, multichannel services and automation, as well as take advantage of cross-sell and
upsell opportunities in its current nonautomotive client base.
Some clients cite limited sharing of best practices, limited IT capabilities (including staff),
agent attrition, technology and process innovation, and middle-management skills as key
cautions.
Sitel
Sitel is ranked as a Leader in this year's report. Nashville, Tennessee-based Sitel is a $1.44
billion CM contact center BPO service provider that employs more than 61,000 FTE and WAH
agents who support over 250 clients in more than 40 languages from more than 108 facilities
across 21 countries. Sitel was recently acquired by Acticall Group, a France-based CM BPO
company.
The company continues to have a strong multilingual strategy; one in every four programs
currently run is a multilingual program. Sitel continues to invest in WAH agents, analytics,
cloud, mobile and marketing services across its key markets. Sitel has a defined
vertical/industry focus, with clients across communications, healthcare, high-tech (Internet,
wireless and technology providers), financial services, media and entertainment, retail,
transportation and utilities.
Sitel has been increasing its capabilities in handling complex client interactions and customer
experience. The recent acquisition by Acticall places the company in a strong cash position,
enabling Sitel to continue to invest in complementary and new service offerings, including
nonvoice multichannel services, Sitel Premium Technical Support, WAH and analytic services
driven by clients' needs.
STRENGTHS
Sitel has deep domain, process and industry expertise, especially in growth industries, such
as technology, consumer electronics and communications. Also, the company has one of
the most diversified revenue concentrations in the industry. Sitel's top 10 client
relationships represented approximately 36.3% of its revenue in FY14, and the largest client
represents only 6% of its annual revenue, all of which points to a well-diversified client and
vertical/industry concentration.

The company has strong geographical presence across North America, Latin America,
Europe and key locations in Asia/Pacific. It has extensive CM contact center BPO service
offerings, which include multichannel and analytic capability, across all key regions. It also
has a strong leadership, adept at managing the demands of multiple stakeholders and
managing change.
Some clients cite flexibility, responsiveness, operational expertise, customer service skills, a
strong senior management team, cultural alignment, recruitment process, key performance
indicator management and analytic offerings as key strengths.
CAUTIONS
Sitel has limited consulting capability, thought leadership skills and technology assets to
help deliver innovative and business transformation for CM contact center BPO services.
The company also needs to keep investing to close the agent skills gap by enhancing
ongoing processes with talent suppliers and investing in new skills development for middle
management leaders who will help clients with the CM contact center BPO services.
The company has limited CM contact center BPO services that address the needs of a
growing small and midsize market and of new hypergrowth digital companies with specific
service offerings and solutions. The company needs to further invest in offerings related to
digital services, mobile services, automation and advanced analytics.
Some clients cite as key cautions limited IT capabilities, middle and operational
management staff, ability to manage complexity, and service consistency across
multigeography engagements.
Sutherland Global Services
Sutherland Global Services is ranked as a Leader in this year's report. Sutherland Global
Services, a Rochester, New York-based company, valued at over $1 billion, has more than
36,000 employees across more than 40 centers in 14 countries. It derives 40% of its revenue
from global enterprise clients. It is a global BPO services company providing integrated
platform-based and analytics-enabled business cycle support solutions. Its proprietary
platform-based technical support services are branded as SmartLeap. The company has
been expanding its operations in Europe and announced plans to invest about $11.15 million
in Bulgaria by 2016.
The company's major clients and focus are in communications, technology, retail, banking,
insurance, healthcare, logistics, and travel and transportation sectors. It has been witnessing
robust growth with more client prospects likely to be added across its centers globally.
STRENGTHS
Sutherland Global Services uses a global delivery model comprising onshore, nearshore,
offshore and CloudSource options. CloudSource is a virtual model enabling its employees
to work from home so that they are geographically distributed as per their client

requirements.
Sutherland Global Services is focused on innovation and continuous service improvement.
One of the key focus areas is digital transformation of key internal operations and
processes. More recently, the company launched a new Healthcare Robotic Process
Automation (RPA) center of excellence in Hyderabad, India.
The company aggressively pursues risk sharing and business-outcome-based commercial
models, which give more credibility to the firm and assurance to its clients.
Some clients cite a strong management team, project management skills, flexibility,
responsiveness and good technical capabilities as key strengths of Sutherland.
CAUTIONS
Although Sutherland is making consistent efforts in expanding its footprint in Europe, the
company is still highly concentrated in delivery to North America and Asia/Pacific. Until its
planned expansion in Bulgaria by 2016, the company has a relatively limited presence in
Europe.
Some industry sources indicate that Sutherland's pricing model is best suited for servicing
North American clients through global delivery centers. The pricing is not competitive
enough for clients located in other regions, such as Latin America, and the company can be
inflexible with changing its pricing structure as per local needs.
Some clients cite relatively higher pricing, limited geographical presence (in EMEA),
attrition, recruitment (time to hire) and longer turnaround time for contractual/legal
changes as key cautions.
Sykes
Sykes is ranked as a Leader in this year's report. Sykes has more than 51,000 FTE agents
serving clients from more than 65 centers in more than 21 countries. It has 8,700 virtual
customer contact agents across 40 states in the U.S. and eight provinces in Canada. Sykes
provides customer care, technical support and acquisition services in more than 30
languages. The company acquired Alpine Access in 2012, which helped enhance the
company's technology assets and service capabilities to deliver WAH-based services. Sykes
has strong geographical presence in North America, Latin America and Asia/Pacific, which
translates into a good regional revenue mix. The company continues to focus on banking and
financial services, communications, technology, consumer electronics, and healthcare.
The company has been steadily acquiring companies over the years with the recent addition
being that of Qelp, a Netherlands-based provider of self-service software and call center
software for smartphones. Sykes plans to grow inorganically by acquiring more companies
going forward. It has strong growth in margins and cash flows. The company's operating
profits increased from $47.8 million in FY12 to $79.6 million in FY14. During the same period,

the company's net profit increased from $28.4 million in FY12 to $57.8 million in FY14 at a
CAGR of 43%. The strong growth was driven by new contract sales and higher volumes from
existing contracts in the Americas and EMEA.
STRENGTHS
Sykes has a diverse global delivery footprint. The company's global footprint includes
established brick-and-mortar operations in both onshore and offshore geographies where
companies have access to high-quality customer contact management solutions at lower
costs compared with other markets.
Sykes expanded its geographic presence and its business operations through its organic
and inorganic growth strategy. In August 2015, the company acquired Qelp, allowing it to
broaden and strengthen its service portfolio around digital customer support services.
Some clients cite flexibility, collaboration, deep industry process knowledge, service quality
and consistency, and analytic capabilities as key strengths of Sykes.
CAUTIONS
Sykes has a relatively high client concentration. It depends on a limited number of clients
for most of its revenue. Sykes's top 10 clients accounted for 46.8% of the consolidated
revenue, and it is highly concentrated in the communications sector. Though this is a CM
BPO industrywide issue, clients need to evaluate this caution prudently.
Sykes lacks scale in key markets within EMEA and Asia/Pacific. This lack of scale limits the
company's ability to compete effectively for global and regional deals, especially in markets
such as EMEA and Asia/Pacific.
Some clients cite IT and project management skills, some inconsistencies in operations
reporting, longer time required to work with internal legal and financial processes, and
delivery of unstructured client engagements as key cautions. In some cases, larger, more
complex (multisystem) implementations can stretch resources.
Tech Mahindra
Tech Mahindra is ranked as a Visionary in this year's report. Tech Mahindra's CM BPO arm
has about 27,500 employees, serving over 90 clients from 26 delivery locations across 15
countries in more than 54 languages and dialects with revenue of approximately $400 million.
Tech Mahindra BSG has a strong presence in the emerging markets, especially in the
communications sector across the U.K., Asia/Pacific and Africa, and it is investing to grow in
North America — new centers include Budapest, Mexico, Sao Paulo and Waterford (Ireland).
Despite having a delivery center in Fargo, Tech Mahindra BSG has to develop more onshore
centers in North America to cater to a growing customer base. Key vertical/industry focus
includes communications, banking, financial services and insurance (BFSI), retail, energy,
hospitality, healthcare, pharmaceuticals and technology.

The company continues to roll out its digital, nonvoice multichannel services, automation,
analytics social CRM and platform strategy — with platforms such as CareXa, Socio, Tecnico,
OrderVu, OrderFix and Prism, for its CM contact center BPO business. The company is
actively and methodically moving clients onto its digital CareXa offering, which also has
multichannel service. The company has extensively tapped into emerging markets and has
embarked on providing more flexible pricing models, such as outcome-based pricing and pay-
as-you-use, to clients.
STRENGTHS
Tech Mahindra BSG has a solid management team with a focus on service delivery. It also
has a strong sponsor — the Mahindra Group. The company continues to build its thought
leadership, consulting (CM) capabilities and assets, as well as to develop centers of
excellence in collaboration with its IT services business.
Tech Mahindra BSG has an extensive voice-based service offering for CM BPO services and
continues to invest in digital, nonvoice multichannel, analytics and social CRM services.
The company is investing in and building next-generation-platform-based solutions, such as
CareXa and Socio, which are now part of the company's CM contact center BPO portfolio of
service and solutions.
Some clients cite strong cultural fit, strong industry expertise and process knowledge,
responsiveness, result orientation, strong analytics and technology capabilities, good
functional capabilities, fast turnaround time and good program management capabilities as
key strengths.
CAUTIONS
Tech Mahindra BSG's primary focus is on Asia/Pacific, Africa, North America, the U.K. and
Australia. Besides domestic language support in Asia and Africa, the company's focus
elsewhere is only on English-language-based services; it has limited scale in other
languages. However, the company has started to invest in new European and Central
American locations, as mentioned above.
The company has a high level of client and vertical/industry concentration in the
communications sector. The top five clients account for 60% of total revenue. Hence, losing
only one of these clients could have a financial impact on the company. To improve this
imbalance, the company has started expanding into retail and BFSI over 15 months. It has
also ramped up the global sales team dedicated to CM contact center BPO services to
target noncommunications sector clients.
Some clients cite inconsistent service quality across centers, limited onshore presence in
the U.S., lack of performance consistency in midlevel management, and attrition and
turnover of agent and middle management skills as key cautions.
Teleperformance

Teleperformance is ranked as a Leader in this year's report. Teleperformance is the largest
CM contact center BPO service provider in the world, by revenue — estimated at $4 billion,
and by geographical footprint. The company recently acquired the Aegis U.S. CM contact
center BPO business. The company has more than 190,000 FTE agents who support 75
languages and dialects from more than 270 centers in 62 countries. Teleperformance has
balanced revenue contributions from its key markets — namely, Europe, the English-speaking
markets (North America, the U.K. and Asia/Pacific), and Ibero-Latin America.
Teleperformance continues to focus on the following vertical industries: financial services,
communications, travel and transportation, technology, discrete manufacturing, healthcare,
and retail.
The company possesses a diversified vertical/industry and client base, with nearly 750
clients across several industry segments. In FY14, the company generated 24% of its revenue
from telecommunications and the Internet, followed by technology, electronics and media at
14%, and pay TV with 11%. In 2014, Teleperformance was recognized as the best employer in
the Asia/Pacific region by Aon Hewitt. Due to its size and geographical footprint,
Teleperformance, as is the case with most large multinational corporations, focuses on
bundled or value-added large-scale service engagements (that is, for very large global
organizations).
The company continues to plan its growth and expansion through both organic and inorganic
(M&A) strategies, as seen by its acquisition (announced in August 2014) of Aegis' U.S.
business, as well as the opening of new locations in South America (Guyana and Surinam),
the Middle East (Dubai) and the U.S. Teleperformance has a strong corporate social
responsibility program that is sponsored globally but is led and delivered locally (that is,
Citizen of the World and Citizen of the Planet).
STRENGTHS
Teleperformance has one of the most extensive and global presences in the CM contact
center BPO market. The company continues to experience strong revenue growth and has a
strong cash position, recording a 9.9% increase in its revenue in FY14, as compared with
the previous year. Teleperformance continues to invest in its R&D capabilities through its
wholly owned subsidiary — Gnresearch.
Teleperformance has strong local leadership, with extensive local knowledge and business
acumen that is supported by an experienced global organization and leadership team. It
provides multilingual services and has an extensive social CRM and concierge (premium)
service offering.
Some clients continue to cite responsiveness, flexibility, geographical footprint, a
partnership approach to issue resolution, cultural fit, project management skills,
compliance (including U.K. Transfer of Undertakings [Protection of Employment] [TUPE]
regulations) and security capabilities and methodologies, multilingual capabilities,
analytics, and operational excellence as key strengths.
CAUTIONS

CAUTIONS
Less than 10% of the company's revenue comes from digital, multichannel, automated and
analytics services. Slow growth in France and Southern Europe coupled with a slowing
economy in Latin America may see revenue and margin pressure for the company, although
the North American and Asia/Pacific growth will help limit exposure.
Due to its size, geographical footprint and go-to-market strategy, the company may not be a
good fit for small or midsize businesses (SMBs) looking for commodity-based services or
programs.
As key cautions, some clients cite attrition of agents and midlevel management, IT
infrastructure, lengthy contract negotiations, recruitment of agents, and training.
TeleTech
TeleTech is ranked as a Leader in this year's report. TeleTech, based in Denver, Colorado, is a
global provider of customer experience and growth solutions with annual revenue of over
$1.2 billion. The company has over 40,000 FTE and WAH agents across 58 centers in 24
countries, supporting 49 languages and dialects. The company supports global enterprise
clients in automotive, communications and media, financial services, government, healthcare,
technology, transportation and retail sectors across 80 countries. TeleTech continues to
invest in and optimize consulting, voice and digital and multichannel services across the
customer life cycle. Through its Customer Strategy Services division, TeleTech is able to
deliver thought leadership, strategy and management consulting services to its existing
clients and prospective CM contact center BPO buyers.
The company provides marketing services, revenue generation, and back-office and human
capital solutions, including learning services and analytics-driven customer experience
business services and solutions globally. TeleTech offers an integrated platform that
combines consulting, technology, care and growth services to streamline and personalize
customers' interactions to create a consistent customer experience. TeleTech continues to
develop technology-based solutions, delivered through the cloud, on-premises or via hybrid
models.
STRENGTHS
TeleTech has comprehensive nonvoice multichannel, analytics and automated service
offerings. The company also provides strong Web and BPaaS offerings for marketing,
loyalty, revenue generation and digital acquisition, as well as customer service — such as
eLoyalty and Revana Digital.
The company has a strong data-focused, cloud-based technology platform through
Humanify, which adopts a customer's communication preference and enables streamlined
interactions between service and support and Revana AQ360, a search-to-sales customer
journey and growth engine. TeleTech helps organizations understand how their customers
want to interact across channels, including social and mobile platforms, in real time.

Some clients cite cross-functional and organizational processes, consulting and thought
leadership capabilities, analytic capability, system implementation, global presence,
operational management capabilities, and revenue-generation services (Revana) as key
strengths.
CAUTIONS
TeleTech has a large client concentration, with its top five and 10 clients collectively
contributing 38% and 50% of the company's total revenue in 2014, respectively. The largest
client accounted for nearly 11% of total revenue in 2014. Clients looking to engage
TeleTech need to understand and assess this business risk with regard to the company's
client and vertical/industry concentration.
TeleTech is perceived to be a premium service provider and in some cases deemed to be
more expensive when compared with its peers. TeleTech customizes its offerings
extensively for each client, making standard offerings and pricing difficult due to the higher
cost to support its services. Gartner believes the company will be able to address this issue
with further deployment of BPaaS, digital, multichannel and cloud-based services.
As key cautions, some clients cite attrition (in offshore locations), pricing, internal cost
pressures, rigid corporate culture and consistency of CM contact center BPO
capabilities/skills in some delivery centers.
Transcom
Transcom is ranked as a Challenger in this year's report. Headquartered in Stockholm,
Sweden, Transcom continues its way to become a leader in the BPO market. It provides
onshore, offshore or nearshore customer care, sales, technical support and collection
services through its network of contact centers and WAH agents. It employs 30,000 customer
experience specialists at 54 contact centers across 23 countries, delivering services in 33
languages to international companies in different industries. In March 2015, private equity
fund Altor bought 24.5% of the ordinary shares in Transcom from Kinnevik. In November
2014, Transcom executed a redomiciliation of the parent company of the Transcom Group
from Luxembourg to Sweden. By this move, Transcom is no longer bound by dual legal
systems — Swedish and Luxemburgish. This will lower costs and simplify the execution of
corporate actions. Next to the redomiciliation, Transcom made some significant changes in
the management team to increase focus and accountability in important areas.
Transcom has made efforts to focus on outsourced CM solutions. In 2014, some of the
Credit Management Services country units were divested. And others were restructured in
order to be integrated with Transcom's core customer care operations. This has resulted in
the direction of all organizational resources toward strengthening its position in the core
business of outsourced CM solutions.
STRENGTHS

Transcom continues to strengthen its management team in order to increase focus and
accountability in key operational areas to help enhance service delivery to clients. The new
appointments will be fundamental in meeting key goals of improving the company's
financial and operational capability, building global engagements and driving growth of
digital, multichannel, analytics and automation services.
Transcom continues to increase its nonvoice revenue. The share of nonvoice has increased
from 14% in 2013 to an estimated 26% for the full year 2015. Multichannel solutions are a
highly prioritized area for Transcom and many of its clients. The company is expanding
multichannel services with major clients in several geographies and sees a significant
increase in worked nonvoice minutes.
Some clients cite strong senior management team, commitment to their staff, quality of
agents, transparent, easy to do business with, flexible, able to cope with high pace of
change and proactive in recommending innovative solutions and services as key strengths.
CAUTIONS
Transcom has a high geographical concentration, with Northern Europe accounting for 32%
of total revenue and Central and South Europe accounting for 24%. It has won new
business with domestic clients in Iberia and Latin America, but volumes in Latin America
are still too low.
The company has a high level of client concentration. While a significant part of Transcom's
revenue is generated from a limited number of key clients, the company's focus on
acquiring new clients is showing results. Clients looking to engage Transcom need to
understand and assess this business risk with regard to the company's client
concentration.
Some clients cite limited U.S. and nearshore location options, lack of proactive issue
management (middle management), inconsistent management expertise and skills,
timeliness (management response), and IT and systems expertise as key cautions of
Transcom.
transcosmos
transcosmos is ranked as a Niche Player in this year's report. Tokyo, Japan-based
transcosmos saw its 2014 revenue grow to $1,668 million, of which more than $650 million is
estimated as CM contact center BPO revenue. The company also has a good IT services
capability to help deliver process solutions and automation.
The company is based in Japan and has more than 35,000 CM contact center BPO
employees across 26 countries in more than 156 centers. Key markets in Asia/Pacific include
Japan, South Korea, China, the Philippines, Indonesia, Thailand and Vietnam. The company
has developed deep vertical-industry capabilities for the telecommunications, wholesale and
retail, financial services, and manufacturing (process manufacturing) sectors.
STRENGTHS

STRENGTHS
transcosmos has deep expertise in CM and digital marketing processes and functions
specific to the Japanese, South Korean and Chinese markets.
transcosmos has deep enduring client relationships and a large client base in South Korea
(including local conglomerates) and Japan, with local Japanese companies looking to
expand into the rest of Asia/Pacific.
Some clients cite project management skills, focus on customer experience and results,
timeliness, continuous engagement with clients, and understanding clients' business and
needs, as key strengths.
CAUTIONS
The company's focus is primarily on Asia/Pacific with high levels of geographic and
language concentration in the Asia-based languages and limited English and European
language capabilities. In order to grow its presence, transcosmos established its first
center in Europe in the U.K. in late 2014. Clients looking for European language capabilities
must assess and mitigate this limitation.
transcosmos has limited experience and knowledge when dealing with clients based in
regions outside Asia/Pacific — especially European clients. Clients planning to engage the
company should also consider business culture and communications as key areas to focus
on besides operational matters.
Some clients cite agent attrition, middle management staff turnover, ability to scale, lack of
English language capabilities, limited insights and analytics services, and relatively short
tenure of staff, as key cautions.
Wipro
Wipro is ranked as a Challenger in this year's report. India-headquartered Wipro provides
information technology, consulting and business process services to its clients across the
globe. Wipro employs over 150,000 people spread across more than 175 locations worldwide
and generated $7.6 billion in annual revenue in FY15. Wipro's CM contact center BPO
business has over 20,500 FTE employees supporting over 60 clients across 50 countries in
20 languages from 24 delivery locations.
Wipro's CM contact center BPO services include presales, sales, customer service and
support, inquiry handling, marketing, and product and technical support services. The
company has a methodical approach to delivering premium customer experience through
process excellence, transformation (process or business), and automation. Apart from stand-
alone offerings, Wipro provides integrated contact center services combined with large-scale
IT services. Wipro's key target vertical markets are communications, BFSI, technology, travel,
retail and healthcare .
STRENGTHS

Wipro has developed six centers of excellence specifically for its CM contact center BPO
practices, and it has invested in domain consultants to help customers develop and
execute on their CM strategies.
Wipro has a proprietary framework called Next-Gen Customer Experience (NGCE), which
leverages process excellence, transformation (process or business), automation and
analytics, delivering clearly defined business benefits and ROI while enhancing customer
experience. Clients engaging with Wipro should ensure these services are provided as part
of the service delivery offering.
As strengths, some clients cite strong leadership, good analytics capabilities, focus on
service delivery, scalability, ability to undertake multiple complex programs, focus on
continuous improvement and cost containment, and perception as an ethical company.
CAUTIONS
Wipro must further innovate and provide platforms to facilitate intuitive and personalized
communication in real time through its CM contact center BPO delivery locations. Clients
looking for disruptive and emerging multichannel platforms, such as mobile social and
cognitive technologies, need to carefully assess Wipro's capabilities, as some may still be in
pilot phases.
Clients still perceived Wipro as an IT services and solution provider rather than a CM
contact center BPO service provider. As is the case with most IT service providers,
investments in the business (such as processes and technology) are typically prioritized for
its IT services business units rather than the CM BPO service business. Clients need to
understand that even though Wipro is a technology heritage company, it still needs to invest
in technologies related to CM contact center BPO service.
As key cautions, some clients cite agent attrition, middle management staff turnover, lack
of communication skills (agent level), limited onshore/offshore offerings, and challenges
with communications with internal stakeholders on issues.
Xerox
Xerox is ranked as a Leader in this year's report. Xerox employs nearly 51,000 FTE employees
in the CM contact center BPO business unit. Approximately 4,000 of these employees are
WAH agents serving companies across multiple industries from over 170 centers across 25
countries, with services in more than 30 languages. Xerox has more than 25 years of
customer care experience and processes more than 2.5 million customer care interactions
daily. Gartner estimates Xerox's CM contact center BPO service revenue to be approximately
$1.8 billion, and more than 30% of Xerox's CM contact center BPO interactions are currently
delivered through digital, multichannel self-service and automated channels — the industry
average is just above 20% of total revenue. In Asia/Pacific, Xerox and its associate company
— Fuji Xerox — continues to grow business opportunities. Currently, Fuji Xerox is one of the
largest BPO service providers in Asia/Pacific. Xerox has approximately 400 CM contact

center BPO clients. Xerox's vertical/industry focus includes technology, communications,
banking and financial services, travel, retail, education, government, pharmaceuticals, and
healthcare.
The divestiture of the ITO business signals a strong commitment to the document
outsourcing and BPO segments within services, and it will allow Xerox to continue making
investments in advancing service delivery capabilities in the BPO market, which is facing
significant disruption due to technology and service delivery automation. The company has
developed an intelligent, virtual customer care agent that is capable of understanding and
solving customer queries in the same way a human agent would. With artificial intelligence
(AI), the initiative also involves analyzing data and learning from its human colleagues. The
WDS Virtual Agent is based on artificial intelligence developed by Parc and the Xerox
Research Center Europe (XRCE) and is capable of learning from its human agents and self-
help channels. The company has a large range of services, such as document management
and BPO, that can significantly benefit prospects that are looking for a full suite of services
and capabilities.
STRENGTHS
Xerox has strong CM consultative selling capabilities and has built up assets and
capabilities in centers of excellence and "Care Labs" — which allow clients to experiment
with their hypotheses and issues, assess current services and develop strategic roadmaps
and Mode 2 capabilities.
The company continues to invest in innovation with the development of automation
(including AI) and analytics to differentiate its services while delivering high levels of
customer experience at optimal costs. It is also engaged in new and innovative models in
the areas of achievement-based compensation (for its staff), pricing models, deal
engineering, workforce management and training management. Clients engaging with
Xerox must take advantage of this offering and include it in their service expectations.
As key strengths, some clients cite agility, flexibility, deep vertical industry knowledge and
experience, responsiveness, project management skills, scalable and reliable services,
willingness to partner with clients, focus on continuous improvement and an engaged
management team.
CAUTIONS
Xerox's CM contact center BPO business is not known to most prospects; the company is
still perceived to be a document technology company.
Xerox continues to demonstrate leadership in digital, multichannel, automation and
analytics services, and it continues to expand its capabilities. However, the company needs
to further develop its service offerings to include BPaaS and digital services, multilingual
capabilities, and marketing services.

As key cautions, some clients cite agent attrition, average customer experience results,
limited leverage of Xerox innovation, administrative bureaucracy, management and
performance consistency across locations, staffing model and recruitment process, and
agent communication skills.
Vendors Added and Dropped
We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a
result of these adjustments, the mix of vendors in any Magic Quadrant may change over time.
A vendor's appearance in a Magic Quadrant one year and not the next does not necessarily
indicate that we have changed our opinion of that vendor. It may be a reflection of a change in
the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor.
Added
Firstsource
Minacs
Wipro
Dropped
West was dropped because of the sale of CM BPO Assets to Alorica. Hence, the revenue for
the existing services in West did not meet the inclusion criteria.
Inclusion and Exclusion Criteria
This research evaluates service providers on their CM contact center BPO capabilities,
specific to the management of their own employees to deliver those services. Direct
management of subcontractors does not apply to this research effort. Rather, this project
aims to assess a CM contact center BPO service provider's ability to recruit, train, manage,
deploy and retain agents to provide CM contact center processes for enterprise or
government clients. CM contact center BPO initiatives require multiple skills and assets to be
successful. CM contact center BPO service providers considered for this Magic Quadrant
have a blend of the following:
CM contact center BPO business expertise (for example, business process design and
service delivery skills)
Organizational expertise (for example, change management and training)
Industry expertise (for example, in the communications, healthcare, utility and financial
services sectors)
Multiple CM vendor/product and technical expertise (such as expertise with homegrown
platforms, Amdocs, Microsoft, Oracle, Salesforce, SAP, Avaya, Nortel, Cisco and Interactive
Intelligence, as well as multiapplication integration, customer data repository strategy and

design)
CM contact center BPO program and project management expertise (for example, project
management skills to take on new clients, portfolio management and governance,
customer contract management)
Ability for innovation (for example, customer experience management design and
management)
Capabilities to deliver CM contact center BPO services through onshore, nearshore or
offshore (global delivery) service delivery models
Ability not only to provide service on the voice channel, but also to provide services across
Web self-service, email response, Web chat and IVR self-service
A broad group of providers offers CM contact center BPO services. Magic Quadrants do not
include all service providers in a given sector. Many service providers focus only on parts of
the overall solution. Companies considered for evaluation in this Magic Quadrant research
are those that not only provide the service mentioned above, but also act as strategic vendors
or partners and provide implementation and management services that encompass most or
all levels of solutions and services. Providers have been evaluated in detail using a
combination of quantitative and qualitative criteria. While vendors may decline to provide
references or to brief Gartner on capabilities, vendors cannot elect to be excluded from a
Magic Quadrant if they otherwise meet the inclusion criteria.
Quantitative Criteria
The following quantitative criteria or thresholds have been set based on existing market
surveys and the Gartner business process market share data:
Service providers that demonstrate CM contact center BPO service revenue derived from
clients, with:
A minimum revenue of $450 million (in U.S. dollars, for 2014) for worldwide CM contact
center BPO services; or
A minimum of 20,000 CM contact center BPO FTE agents
Qualitative Criteria
Ability to provide references from at least four existing CM contact center BPO service
clients from the Americas and/or three each from EMEA and/or Asia/Paciﬁc (minimum 10
references)
A global/multicountry company, with a commitment to CM contact center BPO services
Market share and client base in at least two regions (that is, North America and Latin
America, EMEA, or Asia/Paciﬁc)

Capabilities to serve clients globally; must have global service delivery centers in at least
two regions (that is, North America and Latin America, EMEA, or Asia/Pacific)
For the purpose of this Magic Quadrant research, Gartner assessed service providers with
comprehensive CM contact center BPO service offerings (that is, customer-facing processes
that providers offer from across the four subsegments that make up CM contact center BPO).
Excluded from this research are:
Accounts receivable management (collections).
IT help desk.
HR or other enterprise services, including back-office functions.
Field sales automation — This includes management and administration of face-to-face
interactions between sales teams and clients. The four types of field sales models are:
influencer (using industry experts); opportunity-driven (used primarily for large-value
products); project-driven (used for selling professional services); and iterative (based on
ongoing relationships, such as consumer packaged goods).
Gartner reviews and adjusts the inclusion criteria for Magic Quadrants and MarketScopes as
markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant
or MarketScope may change over time. A vendor appearing in a Magic Quadrant or
MarketScope one year and not the next does not necessarily indicate that we have changed
our opinion of that vendor. This may be a reflection of a change in the market and, therefore,
changed evaluation criteria, or a change of focus by a vendor.
Evaluation Criteria
Ability to Execute
Gartner analysts evaluate CM contact center BPO service providers on the quality and
efficacy of the processes, systems, methods or procedures that enable BPO service provider
performance to be competitive, efficient and effective, and to positively impact revenue,
retention and reputation. Ultimately, BPO service providers are judged on their ability and
success in capitalizing on their vision. The following criteria were used to evaluate service
provider positions.
Product/Service: Core CM contact center BPO services offered by the service provider that
compete in or serve the worldwide market. This includes CM contact center BPO service
capabilities, quality, feature sets, skills and so forth, whether offered natively or through
partnerships as defined in the Market Definition/Description section and detailed in the
subcategories.

Subcategories include assessment of services in key CM contact center BPO business skills,
such as selection, acquisition, retention and extension; assessment of technical knowledge
and skills (that is, service delivery); and effectiveness in developing services to meet
emerging market need and usage of all the channels identified above.
Overall Viability (Business Unit, Financial, Strategy, Organization): Viability includes an
assessment of the overall organization's financial health, the financial and practical success
of the business unit, and the likelihood of the individual business unit to continue investing in
these services, to continue offering the services and to advance the state of the art within the
organization's portfolio of services.
Sales Execution/Pricing: The service providers' capabilities in all CM contact center BPO
presales activities and the structures that support them. This includes deal management,
pricing and negotiation, presales support, and the overall effectiveness of the sales channel.
Market Responsiveness and Track Record: Ability to respond, change direction, be flexible
and achieve competitive success as opportunities develop, competitors act, customer needs
evolve and market dynamics change. This criterion also considers the CM contact center
BPO service provider's history of responsiveness and the ability to quickly scale up or down
on the number of seats based on the customer's changing requirements.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to
deliver the organization's message to influence the CM contact center BPO market, promote
the brand and business, increase awareness of the services, and establish a positive
identification with the brand and organization in the minds of buyers. This mind share can be
driven by a combination of publicity, promotional, thought leadership, word-of-mouth and
sales activities.
Customer Experience: This criterion considers specific client feedback on clients' experience
working with the CM contact center BPO provider and the provider's ability to deliver on key
metrics that drive the overall client experience when working with the CM contact center BPO
provider.
Operations: The ability of the organization to meet its goals and commitments. Factors
include the quality of the organizational structure, including skills, experiences, programs,
systems and other vehicles that enable the organization to operate effectively and efficiently
on an ongoing basis. Subcategories include applied use of proprietary methodologies and
CM contact center BPO global delivery model footprint and capabilities.
Changes to the 2015/2016 Ability to Execute evaluation criteria are as follows:
We split the Product/Service category based on voice and nonvoice services, with a
weighting of 55-to-45 voice to nonvoice services.
Table 1. Ability to Execute Evaluation Criteria
Evaluation Criteria Weighting

Product/Service Medium
Overall Viability (Business Unit, Financial, Strategy, Organization) Low
Sales Execution/Pricing Medium
Market Responsiveness and Track Record High
Marketing Execution Medium
Customer Experience High
Operations Medium
Completeness of Vision
Gartner analysts evaluate CM contact center BPO service providers on their ability to
convincingly articulate logical statements about current and future market direction,
innovation, customer needs and competitive forces and how well they map to the Gartner
position. Ultimately, service providers are rated on their understanding of how market forces
can be exploited to create opportunity for the provider.
Market Understanding: The ability of the provider to understand buyers' needs and to
translate these needs into products and services. It includes service providers that show the
highest degree of vision, listen and understand buyers' wants and needs speciﬁc to CM
contact center BPO, and can shape or enhance those wants with their added vision.
Subcategories include the service provider's knowledge and articulation of key market
direction and trends, and the analysis of the service provider's executive leadership (including
caliber, thought leadership, continuity, operational capabilities and so forth).
Marketing Strategy: A clear CM contact center BPO marketing strategy with a differentiated
set of messages consistently communicated throughout the organization and externalized
through the website, advertising, customer programs and positioning statements.
Sales Strategy: The strategy for selling CM contact center BPO services that uses the
appropriate network of direct and indirect sales, marketing, and service and communications
afﬁliates that extend the scope and depth of market reach, skills, expertise, technologies,
services and the customer base.

Offering (Product) Strategy: A service provider's approach to CM contact center BPO service
development and delivery that emphasizes differentiation, functionality, methodology and
feature set as they map to current and future requirements. Subcategories include service
provider strategies for partnerships and alliances (where applicable), vision for creating new
and/or additional CM contact center BPO offerings and business, and vision for exploitation
of channels other than voice.
Business Model: The soundness and logic of the service provider's underlying CM contact
center BPO business proposition.
Vertical/Industry Strategy: The service provider's strategy to direct CM contact center BPO
resources, skills and offerings to meet the specific needs of individual market segments,
including vertical markets and industries.
Innovation: Direct, related, complementary and synergistic layouts of CM contact center BPO
resources, expertise or capital for investment, consolidation, defensive or pre-emptive
purposes. This also includes the vendor's approach to customer experience design and
development, as well as its sustainable investment in proactive tools, methods, platforms
and/or locations for CM contact center BPO service delivery.
Geographic Strategy: The service provider's strategy to direct CM contact center BPO
resources, skills and offerings to meet the specific needs of geographies in support of the
"home" or native geography, directly or through partners, channels and subsidiaries, as
appropriate for that geography and market.
Changes to the 2015/2016 Completeness of Vision evaluation criteria are as follows:
We increased the weighting for the Business Model category from Low to Medium.
We included a further refinement to the Geographical Strategy category based on regions
(that is, the Americas, EMEA and Asia/Pacific, with a 34-33-33 ratio, respectively). In this
instance, the revenue by region or Gartner estimates will be split by the weighting. For
example, a company may have the following score (based on revenue) for the region:
For example, (34/100) x 9 (for North America) + (33/100) x 5 (for EMEA) + (33/100) x 7 (for
Asia/Pacific) = 7.02 (the total score).
We included a further refinement to the Vertical/Industry Strategy category based on
spread of offerings across various vertical industries — 90% of revenue derived from less
than three vertical industries, 90% of revenue derived from four to six vertical industries,
and 90% of revenue derived from more than six vertical industries, with a 10-30-60 ratio,
respectively, for the total score achieved. For example, if a provider has 90% of its revenue
derived from four industry sectors, then the provider will receive a weighted score of 30:
That is, 30/100 (weighting) x 10 (score) = 3.0, while a provider with seven industry sectors will
receive a weighted score of 60 — that is, 60/100 (weighting) x 10 (score) = 6.0 (total score for
the Vertical/Industry Strategy category).

Table 2. Completeness of Vision Evaluation Criteria
Evaluation Criteria Weighting
Market Understanding High
Marketing Strategy Medium
Sales Strategy Medium
Offering (Product) Strategy High
Business Model Low
Vertical/Industry Strategy Medium
Innovation High
Geographic Strategy Medium
Quadrant Descriptions
Leaders
Leaders demonstrate market-deﬁning vision and the ability to execute against that vision
through CM contact center BPO services, a superior market share (among the top 10
providers in regions where they compete), and solid references for CM contact center BPO
services worldwide, including a cross section of vertical industries. Leaders also have
superior investments in innovative CM contact center BPO service offerings, business/pricing
models and service delivery models. They have a superior understanding of client needs and
of current market conditions, and they are actively building competencies to sustain their
leadership position in the CM contact center BPO market across multiple regions. The CM
contact center BPO service providers in this Leaders quadrant generally also have strong
global and regional service delivery operations and deep technology to leverage, and they
deliver above-average customer experience.
Challengers

Challengers display sound vision and a strong ability to execute against the vision, but they
have a less-defined view of market directions. The Challengers in this quadrant have a
relatively good level of market understanding, a growing volume of sales and a sizable market
share in key regions/markets for CM contact center BPO services, as well as a good
understanding of their clients' evolving needs. They also have a strong operational execution
but might lack geographical presence, depth in vertical industry, and technology capabilities
and assets.
Visionaries
Visionaries have strong vision and the ability to execute well against this vision. Visionaries
are ahead of potential competitors in delivering innovative services, business/pricing models
and/or delivery models. They anticipate emerging or changing market and customer needs,
and they move into new opportunities quickly. They have a strong potential to influence the
direction of the worldwide CM contact center BPO market, but they may struggle to meet the
needs of all organizations because of some limitations — geographical coverage, technology,
marketing and brand awareness, or vertical industry knowledge. Visionaries must also focus
on sales and marketing execution and customer experience to help improve their overall
position.
Niche Players
Niche Players focus on a particular segment of the market — as defined by characteristics
such as size, vertical industry market, geographical region and project complexity — or they
provide only a select number of services among overall CM contact center BPO services.
They may offer components of the complete service portfolio but demonstrate limitations in
one or more important service areas. Among the worldwide CM contact center BPO service
providers in this quadrant, strengths in market responsiveness and track record, innovation,
marketing and brand awareness are bigger considerations. The relative number of installed
base contracts is also a factor.
Context
The market for CM contact center BPO expanded in the past 12 months to become a $38
billion business in 2015. While some aspects of these BPO services are mature, it is
important for buyers to evaluate service providers that closely match their requirements in
terms of geographical positioning, expertise in their particular industry vertical, and high
focus on fast-growing nonvoice services, such as Web chat and knowledge base self-service.
The target audiences of this Magic Quadrant are buyers of CM contact center BPO services,
those looking to expand or rightsize their providers and/or services, potential buyers of these
services, and general market watchers, such as the investment community.
This Magic Quadrant evaluates leading players in the worldwide CM contact center BPO
service provider landscape. It evaluates service providers on their CM contact center BPO
capabilities in the Americas, EMEA and Asia/Pacific. The scope of services ranges from the

management of service provider employees to the delivery of CM contact center BPO
services to the management of customer experience. However, the direct management of
subcontractors does not apply in this research. Rather, this project aims to assess a CM
contact center BPO service provider's ability to recruit, train, manage, deploy and retain
agents to support and deliver CM contact center processes and services for enterprise or
government clients worldwide.
Market Overview
The worldwide CM contact center BPO market is forecast to grow steadily at a 5.6%
compound annual growth rate (CAGR) from 2015 through 2020. By the end of 2020, Gartner
estimates the CM contact center BPO industry will achieve a market size of $46.7 billion.
Therefore, Gartner believes the opportunities for growth in this market are robust for both
clients and service providers, especially those that are willing to aggressively make
investments in marketing, sales and customer service that leverage digital, multichannel,
automation and analytics services beside the traditional agent-based voice services.
Today the industry is at the forefront of business, managing important "moments of truth" for
global brands and governments across multiple channels of interactions from the traditional
calls to Web chat or mobile services to automated virtual agents — with some engaged in
cognitive self-learning. The industry's mantra today is "customer experience," "customer
journey" and "customer engagement life cycle" to name a few, far sweeter that the decades-
old chants of "cost savings" and "cost optimization." Though the mantra has changed, some
old habits die hard, such as the continued reliance on average handle time (AHT), the
industry's most loved and hated measurement metric (please see "CX: How to Optimize a
BPO Provider's Ability to Improve Customer Experience" ).
Moving forward, Gartner expects buyers to grow in sophistication with regard to managing
complexity (such as multichannel or vertical/industry speciﬁc services) and outcomes in a
given business relationship — through the extensive use of governance and contract
mechanisms. Buyers today are looking for the "value" equation rather than just "cost savings"
outcomes. Buyers have "slow economic growth" fatigue and are looking for nonlinear growth
opportunities through innovative business models for their products and services. As the
"custodians" of customer experience and "curators" of moments of truth for their end
customer, they look to us for guidance and insights on where is the "next big thing" that will
help them differentiate their products or services, and deliver nonlinear growth opportunities.
Discussions have truly shifted from just cost containment and labor arbitrage to the delivery
of enhanced customer experience, automation, value-added services such as multichannel
and analytics services, scalability, quality of service and more innovative ways of addressing
the increasing levels of complexity in their business and customers.

Digital services today means different things depending on who is asked, which can be
confusing. Gartner has, therefore, created a definition aimed at narrowing down what it really
is — the purist view. Gartner defines digital business as the creation of new business designs
by blurring the physical and digital worlds. The promise of digital business transformation is
to usher in a convergence of people, business and things to create new engagement and
revenue opportunities. This confluence enables enterprises to take advantage of how
devices, information, advanced analytics and technologies can be utilized to dramatically
reshape how business functions and processes are executed. Of particular importance to
digital business operations is the impact of the Internet of Things (IoT; devices and sensors
that are used to collect data related to business operations), a subset of digital business.
With the use of analytics, the data from the IoT is converted into information and insights that
can be used to monitor, react and optimize the business operations in a dynamic manner,
such as the BPaaS-based premium product support (PPS) or premium tech support (PTS).
Digital business is unique in that there must be business operational changes enabled by
things and technologies, and these changes must be internal and external to the enterprise.
Digital marketing is similar to digital business in that it changes business processes and
usually connects external participants to internal processes. Most CM BPO services are
focused on the implementation of digital technologies to deliver a digital service experience,
while a small handful of providers have really embraced digital business in its pure form.
For more information, see "Market Trends: Customer Management BPO Matures With BPaaS
and Multichannel, Analytics, Marketing and Mobility Services."
Evaluation Criteria Definitions
Ability to Execute
Product/Service: Core goods and services offered by the vendor for the defined market. This
includes current product/service capabilities, quality, feature sets, skills and so on, whether
offered natively or through OEM agreements/partnerships as defined in the market definition
and detailed in the subcriteria.
Overall Viability: Viability includes an assessment of the overall organization's financial
health, the financial and practical success of the business unit, and the likelihood that the
individual business unit will continue investing in the product, will continue offering the
product and will advance the state of the art within the organization's portfolio of products.
Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure
that supports them. This includes deal management, pricing and negotiation, presales
support, and the overall effectiveness of the sales channel.
Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve
competitive success as opportunities develop, competitors act, customer needs evolve and
market dynamics change. This criterion also considers the vendor's history of

responsiveness.
Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to
deliver the organization's message to influence the market, promote the brand and business,
increase awareness of the products, and establish a positive identification with the
product/brand and organization in the minds of buyers. This "mind share" can be driven by a
combination of publicity, promotional initiatives, thought leadership, word of mouth and sales
activities.
Customer Experience: Relationships, products and services/programs that enable clients to
be successful with the products evaluated. Specifically, this includes the ways customers
receive technical support or account support. This can also include ancillary tools, customer
support programs (and the quality thereof), availability of user groups, service-level
agreements and so on.
Operations: The ability of the organization to meet its goals and commitments. Factors
include the quality of the organizational structure, including skills, experiences, programs,
systems and other vehicles that enable the organization to operate effectively and efficiently
on an ongoing basis.
Completeness of Vision
Market Understanding: Ability of the vendor to understand buyers' wants and needs and to
translate those into products and services. Vendors that show the highest degree of vision
listen to and understand buyers' wants and needs, and can shape or enhance those with their
added vision.
Marketing Strategy: A clear, differentiated set of messages consistently communicated
throughout the organization and externalized through the website, advertising, customer
programs and positioning statements.
Sales Strategy: The strategy for selling products that uses the appropriate network of direct
and indirect sales, marketing, service, and communication affiliates that extend the scope
and depth of market reach, skills, expertise, technologies, services and the customer base.
Offering (Product) Strategy: The vendor's approach to product development and delivery that
emphasizes differentiation, functionality, methodology and feature sets as they map to
current and future requirements.
Business Model: The soundness and logic of the vendor's underlying business proposition.
Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to
meet the specific needs of individual market segments, including vertical markets.
Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or
capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet
the specific needs of geographies outside the "home" or native geography, either directly or
through partners, channels and subsidiaries as appropriate for that geography and market.
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