Thinking small is a risk: Utilities’ advantage in choosing global CX outsourcing companies

In today’s U.S. and Canadian markets, electric, gas and water utilities are facing two major pressures: delivering excellent customer experiences in a regulated environment, while also modernizing CX operations. To meet these challenges, many utilities are reevaluating who they trust to manage their customer service functions. During these decision-making processes, new consideration points are emerging: whether to partner with a larger global CX outsourcing company with proven investments in AI or to engage with smaller providers who often rely on third-party software and loosely customized IP, with higher unit costs centered around KPI compliance. 

We will explore why leading utilities in recent years are shifting toward global outsourcing company partnerships, especially those offering their own proprietary AI capabilities. Additionally, we will outline the strategic and operational risks of choosing smaller players that depend heavily on white-labeled AI tools and disconnected platforms. We know that the stakes are higher than ever for utilities in the fast-growing age of electrification, natural gas decarbonation laws, and the consumption constraints of water. So, the wrong outsourcing choice can significantly affect regulatory compliance, customer satisfaction, and the cost of reliable service.

The dual focus: Customer experience and operational efficiencies

Utilities face a dual mandate: provide exceptional service across every channel while streamlining internal operations to control costs and manage complexity. Customer expectations continue to rise, with digital-first, self-service, and always-on engagement becoming the norm. Simultaneously, the back office must handle billing, collections, account management, and outage communications with precision and reliable speed.

This is forcing utilities to think differently about outsourcing partners, it’s no longer just about staffing contact centers. Today’s utility CX outsourcing companies must bring strategic thinking, advanced tools, and a clear roadmap for AI enhanced transformation while building upon the emotional trust their Utility clients have in their respective communities. This task is further challenged by regulatory rate cases, decisions that by nature are political and typically provide cost containment for the end consumer. 

Why global CX outsourcing companies have the advantage

Before diving into the specific strengths that set global outsourcing companies apart, let’s look at why these advantages matter right now for utility leaders. With rising expectations from both customers and regulators, choosing the right partner isn’t just a cost containment decision, it’s long-term trust, compliance, and resilience. Large global CX outsourcing companies offer a clear edge, because they’re not just reacting to trends, they’re investing in the tools, talent, and technology that utilities need in an AI future. Their advantage also comes from the rounded perspective they gain from working with different industries and global regions and here’s why:

Investments in agentic AI

Large global outsourcing companies are investing heavily in agentic AI which is AI that plans, reasons, and acts autonomously in pursuit of a defined goal to the individual account level. Unlike basic automation or chatbots, agentic AI enhances the capabilities of human agents and drives preemptive service delivery. In a recent report Agentic AI is enabling AI-first business by Microsoft, transformations in industries like utilities, aim to anticipate customer needs, automate tasks, and reduce manual workloads.

Global outsourcing companies aren’t just integrating white labelled AI products; they are building their own frameworks, governance models, and compliance systems. This matters for utilities, where privacy, accuracy, and continuity are essential.

Infrastructure and business continuity

Ryan Strategic Advisory’s "CX Services Market Ripe for Larger Outsourcing companies" reported that enterprise buyers are shifting toward larger outsourcing partners due to business continuity concerns. Global providers offer redundant locations, multilingual hubs, and robust disaster recovery models - a must in an era of climate-related outages and cyber risks.

An AI-literate workforce

Global outsourcing companies are known for attracting skilled and experienced customer service professionals. They don’t just hire great talent, they also invest heavily in training their teams. One of their biggest strengths is the rapid knowledge transfer of using advanced AI tools. It’s especially important for utilities, where customers expect both quick answers and human understanding.

By teaching their teams how to use AI in their workday, these larger outsourcing companies make sure agents can respond faster, solve problems, and offer personalized service. Agents use AI to instantly pull up account details, smart suggestions, and predict most issues before being asked them.

Global CX outsourcing companies are making massive investments in training their employees in empathically aware communication more than ever before, making them ready to serve all utility customers’ intent. Emotional intelligence and AI generate better customer experiences, build trust, and support the needs of regulated utility environments.

Technology stack integration

Big outsourcing companies offer everything in one connected system. Instead of accessing tools from different vendors that do not always work well together, global outsourcing companies bring AI, analytics, cloud services, and tools into unified setups. This helps utilities avoid the risks of mixing systems like delays, errors, or loss of data between platforms.

Unified systems mean agents can work faster because of not having to toggle between programs for information they need. Unified systems also produce easier ways to track customer data, spot patterns, and fix problems before they grow. Utilities have always relied on strong service and dependable systems. Using an outsourcing company with a fully integrated tech stack means better performance, fewer issues, and is the genesis of AI-powered development.

Smaller outsourcing companies falling short

The historical belief in the North American market has been that utility CX leaders are drawn to smaller outsourcing companies. The reasoning was that typically these firms were seen as agile, able to pivot quickly, and capable of offering an aligned partnership experience with KPIs that keep their utility relationship heavily valued in many ways. 

Smaller outsourcing companies limitations became very visible with the advent of AI. Most lack the R&D resources to develop AI and simply repackage shelf solutions from third-party vendors. This created integration issues, reduced data visibility, and produced risky compliance gaps.

Ryan Strategic Advisory mentions in "AI White Noise Muddying Today’s CX Waters" that CX buyers are increasingly frustrated by outsourcing companies that overpromise AI, while relying on white-labeled platforms that don’t deliver consistent results. That is a critical path for most regulated utilities. 

Smaller outsourcing companies have business models that struggle to offer the scale and redundancy for utility contracts, especially when storm support, regulatory compliance, and multi-region coverages are required. Their lack of AI training, governance, and data oversight systems have often put utility relationships at risk.

Strategic imperatives for utilities

AI co-pilots, not replacements

Utilities should look for outsourcing partners that use AI to help agents, not replace them. The best global outsourcing companies use AI tools like digital co-pilots that work alongside human agents. These tools give real-time suggestions, automate repetitive tasks, and even predict what a customer might need next. This helps agents do their jobs better and faster, without losing their personal touch. When AI supports the agent instead of taking over, it leads to better service for customers and a more satisfying job for employees.

Data systems working together

For AI to work well, it needs access to clear, connected data. That means bringing together information from different systems like billing, customer service, and outage reports. Large outsourcing companies continually build these kinds of systems because they have the tools and knowledge to link everything securely. When data flows easily between systems, AI can give faster answers, solve problems early, and deliver smoother customer experiences, something utilities can’t afford to overlook.

Governance and ethics

Utilities work in highly regulated environments, so any AI used must follow clear ethical rules. That includes making sure that the AI being used is fair, unbiased, and transparent regarding how decisions are made. Global outsourcing companies are more likely to have governance bodies in place for technology and AI usage and processes. These frameworks include continuous auditing to maintain compliance with ethical and legal standards, compliance with AI security standards and controls, robust quality control measures, and mechanisms that allow human intervention when necessary. Smaller providers often don’t have these protections in place by way of their business model. That is an extremely risky proposition for utilities, who need to be sure their customer interactions stay trustworthy, fair, and fully compliant within a governance model that has auditable oversight. 

AI training and skill building

Having AI tools isn’t enough. Outsourcing partners should also know how to teach their teams to use the developed AI and be the improvement of it. This includes training agents to work with the AI by updating systems as new technology comes out, and making sure their AI keeps learning from that feedback. Utilities making outsourcing companies decisions should treat AI knowledge transfer as a critical because without it even the best tools won’t deliver results.

Costs of thinking small

For utilities, the pressures of optimizing CX functions have never been greater. Seeking outsourcing partners is no longer just about price or headcount, it’s about finding an innovative partner with the scale, tools, and vision to lead in the AI era.

Global outsourcing companies that invest in AI, ethical governance, and proficient operations provide a significant competitive edge, while smaller players relying on recycled software and one-size processes expose utilities to unnecessary risk.

For utilities, thinking small is a strategic liability. The notion of “just around the corner” is now and success belongs to those who can source and integrate digital intelligence with operational excellence. It has been increasingly apparent that success is found among the global CX outsourcing companies, who heavily invest and innovate as a business model and can contractually meet the challenge.