CX Files

CX Files Episode 435: Beyond FTEs – The Road to Outcome-Based BPO Pricing Guest: Victor Manzanera, Founder and Principal Analyst, Scale Edge Group – Oslo, Norway Everyone in the BPO industry is talking about outcome-based pricing, but how do we actually move away from charging for headcount and hours? And is the industry ready for such a fundamental change? In this episode of CX Files, Mark Hillary and Peter Ryan explore the challenges of traditional BPO contracts before Mark interviews Victor Manzanera, founder of Scale Edge Group. Victor has just published The Outcome-Based BPO Model, a 33-page report examining how BPO buyers and suppliers can gradually transition from traditional FTE pricing towards contracts that reward genuine business outcomes. Key discussion points include: Evolution, not revolution: Why outcome-based pricing requires a gradual transition rather than an overnight replacement of FTE contracts. Rethinking KPIs: Why traditional performance metrics often have little connection to the business outcomes clients actually want. Sharing the rewards: How gain-sharing agreements and meaningful bonuses can encourage BPOs to improve efficiency, customer retention, and revenue. The AI incentive problem: Why headcount-based contracts can discourage automation and how new commercial models could accelerate AI adoption. Beyond pricing: Why achieving better outcomes may require different agent skills, training, technology, and operating models. Practical next steps: How buyers can start changing their BPO relationship immediately, even without renegotiating their entire contract. Victor argues that the most important change is not simply how BPOs get paid, but how buyers and suppliers define success and work together to achieve it. The central message: Stop buying people and hours. Start building partnerships focused on business results. Victor's report, The Outcome-Based BPO Model, was published by Scale Edge Group on October 14, 2026, and is freely available through Scale Edge Group - link is below. --- https://www.linkedin.com/in/victor-manzanera/ https://www.scaleedgegroup.com/ https://www.scaleedgegroup.com/outcome-based-bpo-model https://www.linkedin.com/posts/scale-edge-group_bpo-outsourcing-cx-activity-7516022738088640513-BHiE    Summary & Overview The discussion examined a gradual shift from FTE pricing to outcome-based BPO relationships, including incentives and prerequisites for adoption. Hybrid Transition Victor argued that pricing and performance measurement can evolve separately: companies can keep FTE contracts while aligning KPIs and incentives to business outcomes. Buyers and BPOs need to agree on the company's actual objectives; excessive or conflicting operational KPIs can obscure results and limit BPO ownership. Incentives and Readiness Bonuses tied to outcomes such as efficiency, first-contact resolution, revenue, or reduced churn can reward BPOs for improvements and support AI adoption. Transaction pricing is most viable with reliable volume forecasts, handle-time data, and contractual volume protections. How can companies without these prerequisites create aligned incentives while retaining FTE pricing?  

This week, the CX Files turns the tables on co-host Peter Ryan. Ryan Strategic Advisory has just celebrated its tenth anniversary, so Mark Hillary interviews Peter about what he has learned from a decade of advising BPOs, enterprise buyers, governments, and CX leaders around the world. Peter looks back at how the industry has changed since 2016 — from the growth of remote and hybrid work to automation, AI, employee experience, and the changing ways companies discover and select CX partners. He also explores the evolution of global delivery locations, including the continued strength of India, the Philippines, South Africa, Egypt, and Mexico, alongside the emergence of markets such as Colombia, Serbia, Kenya, Rwanda, and Ghana. The conversation also tackles one of the biggest challenges facing CX today: separating genuine structural change from industry hype. Peter reflects on earlier predictions around IVR, RPA, remote work, and now AI, arguing that technology continues to transform the industry — but the human element remains central. Finally, Peter shares some of the lessons he has learned from running an independent advisory business for ten years: the importance of visibility, relationships, investment, resilience, and being present in an industry that is still built around conversations, handshakes, and personal connections. https://www.linkedin.com/in/peter-ryan-montreal/ https://ryanadvisory.com/ https://ryanadvisory.com/2026/10/06/10-learnings-from-10-years-of-ryan-strategic-advisory/

In episode 433 of the CX Files, Mark Hillary talks to Victor Botto, Vice President for Business Development for Sub-Saharan Africa at TP, about why Kenya deserves far more attention as a global CX and BPO location. Victor explains why Kenya's opportunity goes well beyond lower-cost customer service. They discuss the country's highly educated workforce, deep experience in fintech and tourism, its growing technology ecosystem, and the importance of an employee-first culture in building better customer experiences. The conversation also explores the bigger African opportunity. Could establishing CX operations in Kenya give global companies not only a new delivery location, but also valuable experience and insight into one of the world's fastest-growing consumer markets? Topics include: Kenya as an alternative global BPO hub, fintech and M-Pesa, tourism and hospitality expertise, the "Silicon Savannah" technology ecosystem, employee experience, talent development, and Africa's future consumer growth. ------ https://www.linkedin.com/in/victorbotto/ https://www.tp.com/ https://theservicecontinent.substack.com/ ------ Overview / Summary Kenya was presented as a high-value CX and BPO destination whose advantages extend beyond labor cost. Strategic Position Victor described Kenya as a diversification option for companies facing saturation, rising costs, attrition, and talent competition in established hubs. Kenya offers a GMT+3 time zone, C1 English proficiency, cultural familiarity with Western markets, and a BPO career path viewed as desirable by graduates. Sector Expertise Digital experience with M-Pesa supports fintech and digital-wallet service operations through lived understanding of payment issues. Tourism and hospitality experience supports empathetic, flexible customer service for airlines and travel companies. Nairobi's technology ecosystem includes engineering, cloud, automation, AI data operations, fintech, and software development capabilities. Open Questions How quickly can Kenya build market awareness, delivery capacity, specialized accreditation, and infrastructure to compete with mature hubs? Can companies use Kenyan operations as a platform for broader growth in African consumer markets through the Africa Continental Free Trade Area?

Brian Riback is the CMSWire 2025 Contributor of the Year. Brian is a strategic leader with over 20 years of experience as a CRM and retention specialist. He ias based in New Jersey, USA. In June 2026, Brian published a detailed article exploring how brands can build trust in the era of AI discoverability. The article was titled "How CMOs Build Brand Trust Across AI Search, Agents and Answer Engines." In this conversation with Mark Hillary, Brian describes his ideas around how to operationalise trust - a process he calls TrustOps after a paper by Andrew Frank from Gartner. --- For over two decades CMSWire, produced by Simpler Media Group, has been the world's leading community of customer experience professionals. Today the CMSWire community consists of over 5 million influential customer experience, customer service and digital experience leaders, the majority of whom are based in North America and employed by medium to large organizations. --- https://www.linkedin.com/in/brianriback/ https://www.cmswire.com/ https://www.cmswire.com/author/brian-riback/ https://www.cmswire.com/digital-marketing/how-cmos-build-brand-trust-across-ai-search-agents-and-answer-engines/ https://www.gartner.com/en/experts/andrew-frank   Summary: Outline AI Discoverability and Trust AI tools increasingly influence how buyers discover and evaluate B2B providers. Visibility alone is insufficient; companies must control the credibility and context surrounding their brand. Content and Websites Content should identify its author, publication timing, sources, and relevant questions. Websites should validate AI-generated recommendations with use cases, case studies, testimonials, trust indicators, and accessible human support. AI-generated content can assist production, but authority depends on original expertise and evidence rather than volume. Trust Operations A proposed trust-operations function would coordinate marketing, communications, PR, legal, IT, and cybersecurity. The group would create playbooks and manage risks affecting brand representation across AI systems. Measurement and Alignment Brian recommended emphasizing qualified leads, pipeline movement, conversion, and nurturing rather than impressions or unmeasurable awareness. Marketing and sales should share revenue accountability while maintaining clearly defined roles. Current Work Brian is developing Version Lab, a tool for creating audience-specific versions of ads and emails, and continuing his writing for CMSWire.

In this episode of the CX Files, Mark Hillary and Peter Ryan look at the changing European nearshore landscape before Peter talks to Jeton Aliu, Founder and CEO of Olymp BPO in Pristina, Kosovo. Jeton explains why Kosovo is becoming an increasingly important CX and BPO delivery location. He discusses the rapid growth of the local outsourcing industry, the availability of a young and multilingual workforce, and Kosovo's particular strength in languages including German and English. The conversation also explores the growth of delivery beyond Pristina, government support for the industry, and the biggest challenge still facing Kosovo: building greater international awareness and trust as a serious European outsourcing destination. Mark and Peter also discuss how the traditional European nearshore model is changing, as countries once viewed primarily as outsourcing locations increasingly become consumer markets themselves — creating a much more complex European CX delivery landscape. https://www.linkedin.com/in/jetonaliu8/ http://olympbpo.com/ https://kiesa.rks-gov.net/   Summary: Kosovo was presented as a growing, multilingual European nearshore BPO destination with strong potential but limited global awareness. Industry Growth The BPO sector has expanded significantly since the early 2010s, with approximately 20,000 professionals across more than 120 companies. BPO and ITO reportedly generated more than $2.3 billion in 2025 and 2026, becoming a major contributor to economic growth and youth employment. Pristina is the primary hub, while Prizren, Peja, Ferizaj, and Gjilan have growing delivery centers. Competitive Advantages Kosovo offers English, German, French, Italian, Spanish, Dutch, Norwegian, Danish, and other language capabilities. German and English are especially competitive, supported by diaspora connections and multilingual education beginning in childhood. The country is described as safe, accessible, cost-competitive, and supported by government grants for newly formed BPOs. Growth Challenges How can Kosovo increase international market awareness and build trust with prospective buyers? Yeton identified recognition and education about Kosovo's BPO capabilities as the main challenges to industry maturation. KIESA, the Kosovo Investment and Enterprise Support Agency, was identified as a source of additional information.