According to a study by Parseq, the demand for outsourced services will increase in the UK in the next 3 years. 71% of large businesses and 24% of SMEs plan to increase their reliance upon partners for back office support.
The Parseq study, conducted by the research consultancy Censuswide indicates that by 2027, 1.3 million UK companies plan to increase their trust in outsourcing partners for back-office activities. Around 600,000 organisations will be using outsourcing for the very first time.
In the next three-year period, big businesses are most likely to adopt technology services. They currently outsource two-thirds of their back-office functions (64%) and they have the highest interest in doing so. Parseq researchers found that 39% of businesses with more than 250 workers wanted to outsource IT support, and 32% were interested in outsourcing data management.
The SMEs also show a keen interest in technology services. 24% of the companies expressed an interest in data management and IT, while 20% showed a similar level of interest. Accounting and finance services are the most popular among businesses with less than 250 employees. 32% of respondents expressed interest in adopting these services.
The manufacturing, financial and healthcare sectors are expected to see the fastest growth in demand for outsourced services. Around three quarters of companies plan to use third-party providers to perform back-office functions. The volume of third-party back-office services in manufacturing is expected to grow by 11% over the next three-year period, while healthcare and financial leaders expect back-office outsourcing will increase by 6%.
The study showed that there was a strong correlation in the process businesses are considering outsourcing with those they wish to transform using new technology. Parseq believes that many companies will select partners who are able to help them achieve sustainable cost savings and improve their business by utilizing tools like AI and automation.
Craig Naylor Smith, CEO of Parseq comments: “Our research shows that demand for outsourcing services will continue growing in the next years and that businesses are also recognizing there are huge opportunities to reduce costs and deliver better service with digital transformation. It is smart for the outsourcing industry to take the lead in this transformation, and eliminate the risk associated with it by providing clients with managed services that use the latest technology.
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