A recent study reveals significant shifts in outsourcing trends among UK companies.
- 1.3 million businesses plan to expand their outsourcing of back-office functions.
- 71% of large firms and 24% of SMEs aim to rely more on external partners.
- Technology services, including IT support and data management, are in high demand.
- The manufacturing, financial, and healthcare sectors show a strong outsourcing growth trajectory.
According to new research by Parseq conducted with Censuswide, 1.3 million UK companies are poised to increase their outsourcing of back-office operations by 2027. This trend encompasses both large enterprises and small to medium-sized businesses (SMEs). Among large companies, a substantial 71% intend to deepen their engagement with outsourcing partners, while 24% of SMEs also plan to enhance their reliance on these services.
The study highlights a prominent focus on technology services, particularly IT support and data management. An impressive 39% of larger organisations are considering transitioning their IT support functions to external providers. Additionally, 32% are evaluating outsourcing options for data management. SMEs, while similarly interested in technological advancements, show the greatest interest in outsourcing accounting and finance, with 32% of these smaller firms aiming to implement such solutions.
Sector-specific trends are also apparent, with manufacturing, financial services, and healthcare leading the way in terms of anticipated outsourcing growth. In manufacturing, there is an expected 11% increase in outsourced back-office activities over the next three years. The financial services and healthcare sectors anticipate growth rates of around 6% as they seek efficiency and technological integration to drive improvements.
A key finding of the research is the correlation between the areas companies are looking to outsource and those they wish to enhance through technological innovation. Many businesses are striving for cost savings and service improvements by integrating artificial intelligence and automation within their outsourced services. According to Parseq’s CEO, Craig Naylor-Smith, the strategic advantage for outsourcing firms lies in guiding digital transformation efforts for their clients, ensuring a seamless transition and minimising associated risks.
The study clearly indicates a rising trend towards outsourcing back-office functions in the UK, driven by the need for technological integration and efficiency improvements.
