A growing trend among UK companies is the increased outsourcing of back-office functions.
- 71% of large UK companies aim to expand their outsourcing efforts in the next three years.
- 24% of small and medium enterprises (SMEs) also plan to rely more on outsourcing.
- Key outsourcing interests include IT support, data management, and financial services.
- Manufacturing, financial services, and healthcare sectors lead in outsourcing demand.
The outsourcing of back-office functions is becoming a prevalent strategy among UK businesses, according to a recent study by managed service provider Parseq. The research, conducted by Censuswide, reveals that 1.3 million UK businesses are expected to increase their reliance on outsourced services by the end of 2027. This shift is significantly observed among large companies, with 71% indicating intentions to enhance such partnerships.
Small and medium-sized enterprises are not far behind, with 24% expressing plans to increase outsourcing. Interestingly, about 600,000 businesses will explore outsourcing for the first time, showcasing a substantial shift in operational strategies. The study highlights that large businesses currently outsource approximately 64% of back-office functions, with intentions to intensify this practice in the near future.
Key areas of technological adoption include IT support and data management. Within larger enterprises, 39% are keen on outsourcing IT support, while 32% are looking at data management solutions. SMEs are showing similar trends, though their primary focus remains on outsourcing accounting and finance services, with 32% indicating interest in this area.
Various sectors such as manufacturing, financial, and healthcare services foresee the fastest growth in outsourcing needs. In manufacturing alone, an 11% increase in outsourced activities is projected over the next three years. Correspondingly, healthcare and financial sectors anticipate a 6% rise.
The correlation between technological transformation and outsourcing is highly evident, with many firms seeking partners that offer cost-effective solutions through AI and automation. Parseq’s CEO, Craig Naylor-Smith, points out that businesses are not only aiming to cut costs but also aspiring for service enhancement by embracing digital transformation. He notes, “Our study shows demand for outsourced services will continue to grow, and that businesses recognize opportunities to cut costs and deliver improvements with digital transformation.”
The trend towards increased outsourcing among UK companies suggests a strategic shift towards efficiency and technological integration.
