Did Telstra’s move to bring call centres back onshore really pay off?
Maurice Zicman, Vice President – CX Strategy at TP in Australia, unpacks why the telco industry must rethink old assumptions and focus on digital-first, right-shored customer experiences that serve what today’s customers want.
There’s a hard truth Australian telcos need to face – when it comes to customer experience (CX), location alone doesn’t guarantee better outcomes.
The ‘your call will be answered by someone in Australia’ isn’t a selling point, rather the key focus needs to be how can we deliver the best CX.
Despite a hefty investment by the country’s largest telco in repatriating its consumer contact centres onshore, exactly three years ago, we haven’t seen a clear jump in customer satisfaction. What we have seen is rising operational costs, persistent service inconsistencies, and a disconnect from what customers actually want.
In fact, Australia’s largest telco stands alone here. Most major telcos in Australia continue to operate primarily offshore, suggesting the broader industry is focussed on cost-effective, scalable delivery models – not just national optics.
So what do Australians want? They don’t want to wait 40 minutes to talk to someone just because that person happens to be sitting in Australia. What they do want is speed, empathy and a seamless digital experience – from a customer expert equipped with technology to offer a quick resolution – wherever they may be located.
The customer journey starts well before a voice call. TP’s latest Business Insight lab data revealed 48 per cent of telco consumers globally used self-service options. Less than half of those consumers had full resolution to their query. That’s why an integrated and optimised digital-first CX strategy must come first – combining automation, intuitive interfaces, ongoing updates with continuous investment and seamless escalation paths.
Live chat and app-based service channels have become the norm. Younger telco consumers want to be able to connect with their telco on any channel at a time that suits them. The challenge now is deploying and optimising all channels to deliver a truly connected, efficient service.
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When human support is needed, customers care far more about speed, empathy and resolution than where the agent is located.
The real opportunity is ‘right shoring’
The real opportunity lies in right-shoring, strategically matching the right work to the right people, in the right place, at the right cost. This model prioritises capability, scalability and experience over postcode.
This means re-evaluating the assumption that geography is the biggest factor in service quality.
With rising wages, shallow talent pools and limited scalability in Australia, a purely onshore model is often costly, inflexible and out of step with customer expectations. Smart CX isn’t about proximity, it’s about precision. The future lies in building flexible, tech-enabled service ecosystems that deliver excellence across geographies.
At TP, we believe the future lies in ‘High-Tech, High-Touch’ approach to customer experience management. Combining offshore scale, digital innovation and the human empathy that builds real customer loyalty. Empathy for us isn’t just a value but a capability. By embedding emotional intelligence into every interaction, we ensure that customers feel heard, understood, and supported, no matter where the service is delivered. TP’s newest delivery centre in Bali offers the best of both worlds, able to employ Australians for those processes that warrant an Australian voice experience and employing local Balinese for a cost-efficient non-voice experience.
Security related incidents amongst Australian telco customers has increased 13 per cent in the past five years. Telcos must consider data security and compliance. With recent high-profile data breaches – more recently Qantas and Optus last year – customers are rightfully more concerned about how their personal data is being handled.
This adds another dimension to how they make a selection. Telcos need to consider their partners and processes, ensuring they have sufficient, globally certified and robust data protection standards, proactive monitoring, ongoing staff upskilling and the ability to demonstrate security and compliance at every touch point.
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AI is the great equaliser – if you know how to use it
The AI revolution is already reshaping customer service. Almost half of Australians are now using generative AI, and three in four say it’s making them more productive at work. Yet most telcos are only beginning to explore its full potential.
We’re talking about smart automation, real-time analytics and predictive support models that improve outcomes for customers and service experts, resulting in faster resolution and real results.
For example, virtual agents can pre-empt technical issues before they arise, while real time speech AI can assist service experts in delivering clearer, faster conversations regardless of location.
Accent neutralisation tools are improving comprehension, helping create smoother interactions and real conversations for faster resolution and effective results.
Digital-first should mean smarter service
Digital transformation doesn’t mean digitising old processes, it means redesigning them around what today’s customers want – speed, context, empathy and choice.
The best CX outcomes don’t come from geography, they come from capability, timeliness, and human and emotional intelligence.
The future isn’t fully onshore or fully offshore, it’s hybrid, intelligent and built on customer-first thinking.
A wake-up call for Australian telcos
Let’s not forget there are only a handful of players in the Australian telco space. The rest are referred to as Mobile Virtual Network Operators (MVNOs) or retailers. They lease the network capacity from the big players. It means customer experience is one of the few areas where differentiation is possible.
The major telcos rely on a consumer base that’s becoming more digitally literate by the minute. They expect simpler, faster, safer and smarter services that leading global CX providers like us boast of.
Now is the chance for the industry to start building real, scalable, future-ready CX. Let’s invest in what works – strategic AI, intelligent automation and globally distributed teams who deliver what matters most – great customer experiences.
