Australian enterprises are rapidly adopting AI-powered and hybrid contact center models to enhance customer experience, improve operational efficiency, and ensure compliance, according to the 2025 ISG Provider Lens® Contact Center — Customer Experience Services report. The research, published by Information Services Group (ISG), highlights a strategic shift from traditional cost-driven outsourcing to integrated, flexible delivery models that balance performance, data security, and cultural alignment. The report identifies key drivers behind this transformation: increasing regulatory demands, the need for cost efficiency, and rising customer expectations for seamless, personalized interactions across digital channels. Organizations are embedding AI across all layers of customer experience (CX) delivery, moving beyond pilot projects to full-scale implementation of generative AI tools such as real-time coaching, automated knowledge management, and chat summarization. These technologies are improving response times, agent productivity, and customer satisfaction. Despite the benefits, enterprises remain cautious about AI-related risks, particularly hallucinations and the lack of transparency in model decision-making—issues that are especially critical in regulated sectors like healthcare and government. As a result, many companies are adopting a human-in-the-loop approach, where AI supports agents but complex or sensitive interactions are handled by trained professionals. Hybrid delivery models are gaining traction, with businesses combining onshore operations in Australia with nearshore centers in New Zealand and the Philippines, where English proficiency and proximity offer advantages. Tier 2 Australian cities, as well as emerging markets like Fiji and Vietnam, are also being explored for cost optimization without compromising service quality or data sovereignty. Cloud platform modernization is another major trend. Companies are consolidating their contact center infrastructure on scalable, integrated platforms such as Genesys Cloud, Amazon Connect, and Microsoft Dynamics. These systems unify communication channels, enhance analytics, and enable workforce optimization, leading to shorter handling times and higher first-call resolution rates. The report emphasizes that the most successful organizations are those that blend digital innovation with empowered human agents. Investments in employee experience tools are growing, aimed at improving agent well-being and retention. Additionally, there is a shift toward outcome-based pricing models, where service providers are compensated based on measurable customer outcomes. In its evaluation of 27 providers across two quadrants—Digital Operations and Intelligent Operations—ISG names Acquire Intelligence, Concentrix, Datacom, Foundever, Probe Group, Tech Mahindra, TP, and TSA as Leaders in both categories. Genpact, TTEC, and WNS are recognized as Leaders in one quadrant each. Genpact and HCLTech are identified as Rising Stars, reflecting their strong potential and promising portfolios. Konecta is honored as the global ISG CX Star Performer for 2025, based on top scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program. The full report is available to subscribers or for purchase online and offers actionable insights for enterprises navigating the evolving contact center landscape in Australia.