A recent study highlights the growing trend of outsourcing back-office functions among UK companies.
- 1.3 million businesses plan to enhance outsourcing of back-office activities by 2027.
- 71% of large companies and 24% of SMEs are focusing on outsourcing.
- Key industries like manufacturing, financial services, and healthcare are leading this trend.
- Technological advancement is a major factor driving this shift.
A recent study conducted by Parseq, through the research consultancy Censuswide, reveals that approximately 1.3 million UK businesses are gearing up to increase their outsourcing of back-office functions by the end of 2027. This move is predominantly driven by large companies, among which 71% indicate an intention to expand their reliance on outsourcing partners.
Additionally, the study notes that 600,000 companies will be engaging in outsourcing for the first time. Among large businesses that already outsource about 64% of their back-office operations, there is a significant interest in adopting technology services over the coming three years. More specifically, 39% of companies with more than 250 employees are planning to shift IT support to third parties, whereas 32% are considering outsourcing data management.
Small and medium-sized enterprises (SMEs) also show considerable interest in this trend. Approximately 24% of SMEs are exploring IT outsourcing, while 20% are looking towards data management. However, their prime focus appears to be on accounting and finance services, which 32% of the surveyed SMEs are keen to outsource.
The sectors expected to witness the most rapid growth in outsourced services are manufacturing, financial services, and healthcare. In manufacturing alone, back-office outsourcing is set to rise by 11% in the next three years. Similarly, healthcare and financial services anticipate a 6% increase.
Parseq’s study emphasizes a strong correlation between the types of processes being outsourced and those being transformed through technological innovation. The firm advocates that companies are likely to opt for partners capable of delivering cost savings and business enhancements using artificial intelligence and automation as part of their managed services.
CEO of Parseq, Craig Naylor-Smith, remarks on the findings: “Our study shows demand for outsourced services will continue to grow in the coming years, and that businesses also recognise there are big opportunities to cut costs and deliver service improvements with digital transformation.”
The study underscores a significant shift towards outsourcing, influenced by technological advancements and cost-saving opportunities.
