The UK’s outsourcing industry is projected to experience significant growth next year, with an anticipated increase of £3 billion in back-office outsourcing activities.
- Over half of UK organizations plan to enhance outsourcing efforts, according to a survey by Parseq.
- Accounting and finance services are expected to be the primary beneficiaries of this trend.
- Customer communications outsourcing is also set to see substantial growth.
- Access to specialized skills is the leading reason businesses are opting for increased outsourcing.
The UK’s outsourcing sector is poised for a substantial boost, with more than half of organizations planning to ramp up their outsourcing activities. The anticipated £3 billion increase in back-office outsourcing signals a growing confidence in the benefits of partnering with third-party providers.
According to the survey conducted by Parseq, a managed service provider, accounting and finance services will be the most sought-after areas for outsourcing. Approximately 21 percent of companies intend to either start outsourcing or increase current outsourcing levels in these functions by 2025.
Furthermore, customer communications functions, including contact centers and digital mailroom services, are expected to witness significant growth in outsourcing. Parseq’s data reveals that around 20 percent of businesses plan to engage third-party providers for these services.
The primary driver for this outsourcing shift is not just cost reduction but the need for specialized skills, which was identified by 32 percent of survey respondents. Businesses see this as a way to access expertise and improve efficiency.
Outsourcing varies significantly by business size and sector, with larger companies and sectors like public, technology, and financial services being the most active in outsourcing back-office functions. While London and the East Midlands lead in outsourcing efforts, regions like the South West show lower levels of engagement, with only 23 percent of businesses currently outsourcing.
Craig Naylor-Smith, CEO of Parseq, highlights the trend of outsourcing to optimize skills and reduce costs: “Outsourcing is on the up, driven by talent and cost challenges.” Wage inflation and rising national insurance further incentivize this move, making outsourcing a strategic choice for long-term efficiency.
The UK outsourcing sector is set for significant expansion in 2025, driven by a focus on specialized skills and cost efficiency.
