In this episode of CX Files, Mark Hillary talks to Matt Fry, SVP for AI, CX and Digital Transformation at eClerx and publisher of The CX Marketplace, about why culture cannot simply be outsourced.

Inspired by Matt's Substack article Culture Cannot Be Outsourced, the conversation explores why successful CX partnerships require shared responsibility between clients and BPO providers. They discuss culture during the RFP process, employee engagement and attrition, the importance of client involvement, and how relationships can move beyond SLAs and penalties toward shared ownership of the customer experience.

Matt also explains why culture may be even more important as AI, automation and agentic technologies reshape customer service.

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Culture Cannot Be Outsourced

https://thecxmarketplace.substack.com/p/culture-cannot-be-outsourced

The CX Marketplace

https://thecxmarketplace.substack.com/

https://eclerx.com/

https://www.linkedin.com/in/matthewefry/

Summary:

Matt explains why creating a successful BPO relationship requires a shared 50-50 responsibility for culture between the client and the service provider.

Matt Fry argues that corporate culture in contact centers cannot be outsourced and must be a collaborative effort between the BPO and the client. While it is common to assume the BPO is solely responsible for maintaining a positive environment, Matt suggests that clients must actively participate to ensure deep engagement.

• Clients should focus on transferring "why" something matters rather than just transferring technical processes or product knowledge.
• Effective integration involves leadership from both sides engaging with the operational environment to build mutual purpose.
• A lack of client engagement can lead to employees feeling like anonymous resources, especially as AI and automation make work more transactional.

Matt notes that traditional RFP processes often fail to capture cultural compatibility because they focus on static values rather than dynamic behaviors. To find true partners instead of transactional vendors, companies must reframe their selection criteria.

• Questions should focus on how organizations will solve problems together when performance falls short.
• The goal is to assess whether both parties are willing to modify their operating models to support long-term collaboration after the contract is signed.

Transitioning from a vendor-client relationship to a partnership requires shifting governance away from pure metric monitoring toward shared outcomes. Matt highlights that relying solely on SLAs, targets, and penalties keeps a relationship stuck in a transactional state.

• Meetings should move beyond discussing missed targets or service credits to address customer insights and avoidable demand.
• Trust is built incrementally when a supplier identifies risks early and brings innovative solutions rather than just focusing on the scorecard.

How can cost-sensitive sectors balance the expense of cultural integration with the high costs of attrition caused by poor culture?