Enterprises across Australia are fast-tracking the adoption of AI-driven and hybrid contact center models to enhance efficiency, compliance, and customer experience, according to a new Information Services Group (ISG) report.

The 2025 ISG Provider Lens® Contact Center — Customer Experience Services report reveals that Australian companies are modernizing operations to meet rising expectations for personalized, omnichannel interactions. The shift marks a move away from cost-centric outsourcing toward blended sourcing models that balance efficiency with quality and cultural alignment.

“Australia’s contact center transformations are marked by the convergence of AI adoption, increasing regulation, and continuing need for cost efficiencies,” said Himanshu Chawla, Director at ISG. “Enterprises are embedding intelligence into every layer of CX delivery to enhance productivity while meeting evolving customer expectations.”

Generative AI Moves from Pilot to Production

Australian organizations are integrating Generative AI (GenAI) into customer operations, deploying tools such as chat summarization, real-time coaching, and automated knowledge systems. These innovations are driving measurable gains in response speed and satisfaction while scaling consistent service outcomes. However, ISG notes that enterprises remain cautious about AI hallucinations, transparency, and explainability, particularly in regulated sectors like healthcare and government.

Hybrid Delivery and Cloud Modernization

Enterprises are increasingly turning to hybrid delivery models that balance cost optimization with data sovereignty and security. Many are blending onshore centers with nearshore operations in New Zealand and the Philippines, while emerging markets such as Fiji and Vietnam are becoming strategic for expansion.

At the same time, cloud platform modernization is accelerating, with companies consolidating operations on scalable platforms such as Genesys Cloud, Amazon Connect, and Microsoft Dynamics. This integration of AI, analytics, and workforce optimization enables more personalized customer journeys and improved resolution rates.

“Enterprises in Australia are redefining customer experience by combining digital innovation with empowered human interaction,” said Hemangi Patel, Senior Manager and Principal Analyst at ISG. “The most successful organizations are those that implement automation effectively while preparing human agents for complex, high-value interactions.”

Rising Focus on Employee Experience and Outcomes

The report also highlights growing investments in agent experience and well-being tools, alongside the rise of outcome-based provider pricing models tied to measurable customer metrics.

ISG evaluated 27 providers across Digital Operations and Intelligent Operations quadrants. Acquire Intelligence, Concentrix, Datacom, Foundever, Probe Group, Tech Mahindra, TP, and TSA were named Leaders in both quadrants. Genpact, TTEC, and WNS led in one quadrant each, while Genpact and HCLTech earned Rising Star recognition. Konecta was named the global ISG CX Star Performer for 2025, achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey.

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