Outsourcing spend among UK retailers more than doubled year-on-year in the first quarter of 2016, according to the Arvato UK Outsourcing Index
Outsourcing activity in the retail sector surged in the first quarter of 2016 as retailers invested in their multi-channel capabilities, according to the Arvato UK Quarterly Outsourcing Index.
The research found that outsourcing spend in the sector more than doubled year-on-year to £155.3 million in Q1 2016, with analysis of the deals revealing that delivering an improved multi-channel shopping experience was a driver behind 60 per cent of agreements.
The Arvato UK Outsourcing Index is compiled by business process outsourcing (BPO) provider Arvato in partnership with industry analyst NelsonHall. The data shows that the surge is part of a longer term trend, following a 45 per cent increase in retail outsourcing during 2015 (2015: £378 million; 2014: £260m).
Arvato says this increase is driven by retailers looking to adapt to changing consumer behaviour. According to UK online retail industry association, IMRG, e-commerce spending in the UK is expected to grow by 11 per cent in 2016 reaching £126 billion, with over a third (34 per cent) of consumers saying mobile will become their main shopping channel this year.
Debra Maxwell, CEO, CRM & Public Sector, UK & Ireland, Arvato, commented: “UK retailers are keen to reach customers through a broad range of channels. However, delivering a seamless, multi-channel shopping experience requires major transformation.
“Our research shows that retailers are increasingly looking to outsourcing partners to access the technology and expertise they need to get ahead in a rapidly growing market.”