A total of £6.65 billion worth of outsourcing deals were signed across the UK public and private sectors last year, according to the research compiled by business process outsourcing (BPO) provider Arvato, in partnership with industry analyst NelsonHall
The research found evidence of UK-based organisations entrusting more strategic business functions to outsourcers. Examples of this increased sophistication included: a growing demand for multi-channel customer services – found in 62% of contracts in 2014 compared with 40% in 2013; and a sharp increase in the inclusion of talent management services, such as Recruitment Process Outsourcing (RPO), within HR contracts, which featured in 50% of multi-service HR agreements, compared with zero per cent in 2013 when it was only procured separately.
Debra Maxwell, Managing Director of Arvato UK, said: “Outsourcing has mistakenly become synonymous with offshoring, yet our research demonstrates that UK delivery is continuing to play a fundamental role in the industry as customer requirements become more sophisticated.
“This sophistication is perhaps most easily recognised in the field of customer services. Traditionally typified by voice and email communication, in 2014 it became the norm for these functions to be integrated with more sophisticated digital services like web chat and social media management.
“Offshoring will always have a role to play in meeting certain business’ needs but the demand for more sophisticated solutions, combined with salary inflation in traditional offshore locations, means UK-based delivery is set to continue to dominate.”