Sitting on the beach in Bali, where we just wrapped up an incredible #NavigatingAsiasFuture event with leaders from regional and global brands as well as category experts, I found myself watching the waves roll in. It was too obvious to not see—just like the tides, business landscapes are constantly shifting. Every rise and fall brings new challenges, new opportunities. And just like sailors reading the ocean before setting sail, businesses need to gather the right insights before making critical decisions.
In Bali, I had the pleasure of gleaning these insights from a range of industry experts, including Shirley Hung, Partner at Everest Group. Over a beachside chat, she shared the latest findings from the Everest Group’s annual Key Issues Study, which offers an inside look into the top concerns, expectations, and goals of global service leaders for the coming year.
The study found that business leaders are focused on driving profitable growth amidst a complex landscape of rising costs, evolving customer expectations, and rapid technological change. That’s because they know successfully managing these competing priorities is essential to thrive in an ever-evolving business environment.
To help global service leaders make more informed sourcing decisions, I invited Shirley to share key insights and trends from the study. We hope that with these high-impact insights, your business can remain resilient, competitive, and positioned for long-term success.
Industry leaders Dave Rizzo and Shirley Hung sharing their expertise on the APAC services sector at our #NavigatingAsiasFuture event in Bali.
Balancing growth and cost optimization
A vast majority of businesses express optimism for growth in 2025, but cost and margin pressures remain a top concern, ranking as the number one challenge for enterprises. According to the study, 66% of enterprises are prioritizing accelerating revenue growth, while 61% are focused on profitability and cost optimization.
To tackle cost pressures, businesses are implementing several strategic initiatives. Improving productivity remains a top priority, as organizations seek to do more with less by leveraging technology and process improvements. They’re also optimizing their shoring and location mix to improve cost efficiency, with 76% of companies prioritizing offshore and nearshore locations.
At the same time, businesses are increasing investments in digital transformation (89%) and customer experience (85%) in pursuit of growth. This includes spending on customer experience management (CXM) services, as businesses embrace a holistic strategy that focuses on customer engagement, satisfaction, and experience.
The CXM revolution: Tech-powered transformation
The APAC CXM market is on a robust growth trajectory, expected to reach $20 billion within the next three years. Within the region, key markets like Japan, China, India, and Australia and New Zealand account for more than 75% of the outsourced APAC CXM market.
This expansion is driven in part by the growth of mobile and digital adoption, which is fueling demand for omnichannel and in-app customer experience support. And as consumer needs continue to evolve, businesses are expected to increase spending across a variety of digital CXM solutions.
One such solution is conversational and generative AI. Imagine a future where contact center agents are technically proficient, have strong problem-solving abilities, and can handle complex issues. With advanced AI tools, this future is right around the corner. That’s why conversational and generative AI continues to remain a top investment area in contact center operations, with companies expecting more than 15% in cost savings by scaling up their AI initiatives.
Voice-to-voice translation and accent softening technologies are also breaking down language barriers, reducing the need for multilingual hubs, and accelerating global service delivery. These innovations not only cut costs but also enhance personalization by allowing customers and agents to communicate in their native languages. As a result, businesses can expand their reach and improve accessibility without the logistical challenges of maintaining multilingual teams.
Future-ready CXM strategies
Looking ahead, Everest Group foresees some key trends in APAC’s services landscape. One such trend is that businesses will further enhance voice channels with cutting-edge AI capable of real-time language translation and sentiment analysis. Voice channels are a powerful tool to drive emotionally charged, high-value interactions, helping businesses foster trust and satisfaction. This is an exciting space, promising future developments like AI-powered voice cloning, immersive AR/VR support, and multi-modal experiences that integrate voice, video, and text.
AI-driven digital twins are another groundbreaking advancement. These virtual customer replicas, built from real-time data, can help businesses predict behaviors, proactively solve issues, and deliver ultra-personalized experiences. While the initial investment may be high, the long-term payoff in customer loyalty and retention makes this technology a game-changer. However, leaders must carefully navigate data security and privacy concerns, ensuring that customer trust remains intact even as data collection and analysis deepen.
Last but not least, Everest Group expects businesses to continue unifying CX across functions and deliver cohesive, personalized journeys. One way to do so is by leveraging CX platforms to break down silos between customer service, sales, and marketing. By consolidating tools into one ecosystem, organizations can streamline operations, eliminate redundancies, and access real-time customer insights across touchpoints.
Riding the next wave of growth
The APAC services landscape is constantly shifting, and businesses that stay vigilant, anticipate market changes, and adapt with agility will be best positioned to ride the next wave of growth.
At TP, we are ready to embrace this future. By investing in our people, strengthening partnerships, and continuously evolving with technology, we aim to help our clients navigate these tides of change—transforming every challenge into an opportunity for growth and innovation. With our robust financial performance in 2024, achieving over €10 billion in consolidated revenue, we are well-positioned to invest in the solutions our partners need to succeed.
The future may be unpredictable, but with the right insights and a willingness to evolve, businesses can not only stay afloat but sail ahead with confidence into 2025 and beyond. As the region continues its ascent as a global CX powerhouse, one thing is clear: those who prioritize innovation, invest in customer-centric technologies, and adapt with agility will lead the way into a new era of connected, intelligent growth.
Sitting on the beach in Bali, where we just wrapped up an incredible #NavigatingAsiasFuture event with leaders from regional and global brands as well as category experts, I found myself watching the waves roll in. It was too obvious to not see—just like the tides, business landscapes are constantly shifting. Every rise and fall brings new challenges, new opportunities. And just like sailors reading the ocean before setting sail, businesses need to gather the right insights before making critical decisions.
In Bali, I had the pleasure of gleaning these insights from a range of industry experts, including Shirley Hung, Partner at Everest Group. Over a beachside chat, she shared the latest findings from the Everest Group’s annual Key Issues Study, which offers an inside look into the top concerns, expectations, and goals of global service leaders for the coming year.
The study found that business leaders are focused on driving profitable growth amidst a complex landscape of rising costs, evolving customer expectations, and rapid technological change. That’s because they know successfully managing these competing priorities is essential to thrive in an ever-evolving business environment.
To help global service leaders make more informed sourcing decisions, I invited Shirley to share key insights and trends from the study. We hope that with these high-impact insights, your business can remain resilient, competitive, and positioned for long-term success.
Industry leaders Dave Rizzo and Shirley Hung sharing their expertise on the APAC services sector at our #NavigatingAsiasFuture event in Bali.
Balancing growth and cost optimization
A vast majority of businesses express optimism for growth in 2025, but cost and margin pressures remain a top concern, ranking as the number one challenge for enterprises. According to the study, 66% of enterprises are prioritizing accelerating revenue growth, while 61% are focused on profitability and cost optimization.
To tackle cost pressures, businesses are implementing several strategic initiatives. Improving productivity remains a top priority, as organizations seek to do more with less by leveraging technology and process improvements. They’re also optimizing their shoring and location mix to improve cost efficiency, with 76% of companies prioritizing offshore and nearshore locations.
At the same time, businesses are increasing investments in digital transformation (89%) and customer experience (85%) in pursuit of growth. This includes spending on customer experience management (CXM) services, as businesses embrace a holistic strategy that focuses on customer engagement, satisfaction, and experience.
The CXM revolution: Tech-powered transformation
The APAC CXM market is on a robust growth trajectory, expected to reach $20 billion within the next three years. Within the region, key markets like Japan, China, India, and Australia and New Zealand account for more than 75% of the outsourced APAC CXM market.
This expansion is driven in part by the growth of mobile and digital adoption, which is fueling demand for omnichannel and in-app customer experience support. And as consumer needs continue to evolve, businesses are expected to increase spending across a variety of digital CXM solutions.
One such solution is conversational and generative AI. Imagine a future where contact center agents are technically proficient, have strong problem-solving abilities, and can handle complex issues. With advanced AI tools, this future is right around the corner. That’s why conversational and generative AI continues to remain a top investment area in contact center operations, with companies expecting more than 15% in cost savings by scaling up their AI initiatives.
Voice-to-voice translation and accent softening technologies are also breaking down language barriers, reducing the need for multilingual hubs, and accelerating global service delivery. These innovations not only cut costs but also enhance personalization by allowing customers and agents to communicate in their native languages. As a result, businesses can expand their reach and improve accessibility without the logistical challenges of maintaining multilingual teams.
Future-ready CXM strategies
Looking ahead, Everest Group foresees some key trends in APAC’s services landscape. One such trend is that businesses will further enhance voice channels with cutting-edge AI capable of real-time language translation and sentiment analysis. Voice channels are a powerful tool to drive emotionally charged, high-value interactions, helping businesses foster trust and satisfaction. This is an exciting space, promising future developments like AI-powered voice cloning, immersive AR/VR support, and multi-modal experiences that integrate voice, video, and text.
AI-driven digital twins are another groundbreaking advancement. These virtual customer replicas, built from real-time data, can help businesses predict behaviors, proactively solve issues, and deliver ultra-personalized experiences. While the initial investment may be high, the long-term payoff in customer loyalty and retention makes this technology a game-changer. However, leaders must carefully navigate data security and privacy concerns, ensuring that customer trust remains intact even as data collection and analysis deepen.
Last but not least, Everest Group expects businesses to continue unifying CX across functions and deliver cohesive, personalized journeys. One way to do so is by leveraging CX platforms to break down silos between customer service, sales, and marketing. By consolidating tools into one ecosystem, organizations can streamline operations, eliminate redundancies, and access real-time customer insights across touchpoints.
Riding the next wave of growth
The APAC services landscape is constantly shifting, and businesses that stay vigilant, anticipate market changes, and adapt with agility will be best positioned to ride the next wave of growth.
At TP, we are ready to embrace this future. By investing in our people, strengthening partnerships, and continuously evolving with technology, we aim to help our clients navigate these tides of change—transforming every challenge into an opportunity for growth and innovation. With our robust financial performance in 2024, achieving over €10 billion in consolidated revenue, we are well-positioned to invest in the solutions our partners need to succeed.
The future may be unpredictable, but with the right insights and a willingness to evolve, businesses can not only stay afloat but sail ahead with confidence into 2025 and beyond. As the region continues its ascent as a global CX powerhouse, one thing is clear: those who prioritize innovation, invest in customer-centric technologies, and adapt with agility will lead the way into a new era of connected, intelligent growth.
