Satisfaction With Provider Services Edges Up, as Companies Seek More Innovation, ISG Study Shows

Enterprise buyers of technology and business services rate their customer experience slightly higher than a year ago, praising providers’ compliance expertise while giving low scores for innovation, according to a new report from Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The latest ISG Star of Excellence CX Insights Report, a quarterly review that sheds light on what enterprise buyers think about their service and solution providers, shows the average overall enterprise customer experience (CX) score in the third quarter increased to 75.1 from 75.0 in the same period last year. The survey covers providers of IT outsourcing (ITO) and business process outsourcing (BPO) services, as well as hyperscalers and independent software providers.

Average CX scores rose in three of the six CX pillars covered by ISG’s survey, with the biggest improvement in “Execution and Delivery.” Across all regions, enterprises continued to rate providers highest on “Governance and Compliance” and lowest on “Innovation and Thought Leadership.”

The average CX score for “Innovation and Thought Leadership” fell 0.4 percent to 73.7, while  enterprises’ rating of its importance declined 3.8 percent to 72.3, the lowest of the six pillars. Innovation has been constrained by tight budgets at many organizations, leading to reduced investment in new initiatives, ISG says. 

Despite a decline from last year, high CX ratings for “Governance and Compliance” show that providers continue to meet these requirements as they grow in importance, particularly with the emergence of generative AI.

“Providers are helping clients address a growing number of regulations, especially around the privacy and security of GenAI, and most enterprises remain happy with their providers’ performance in this area,” said Heiko Henkes, ISG managing director and principal analyst who oversees the research program. “At the same time, companies seeking new strategies and emerging technologies want providers to offer more leadership.”

Average CX scores for “Execution and Delivery,” “People and Culture Fit” and “Business Continuity and Flexibility” increased from the same time last year, the report says. “Collaboration and Transparency” scores fell slightly.

In addition to overall CX scores, the third-quarter report focuses on CX scores by geographic region, following on from the first-quarter report, which examined CX scores by industry, and the second-quarter report, which highlighted scores by technology domain. The fourth-quarter report will provide an annual analysis.