Demand for outsourced services in the UK will soar in the next three years, with 71% of large companies and 24% of SMEs intending to increase their reliance on partners for back-office support, according to a new study by managed service provider Parseq.
Parseq’s study, which was undertaken by research consultancy Censuswide, indicates that 1.3 million UK businesses plan to increase the level of back-office business activities trusted to outsourcing partners by the end of 2027. Around 600,000 of these organisations will use outsourcing for the first time.
Big businesses, which currently outsource around two-thirds (64%) of all back-office activities, are most interested in adopting technology services in the next three years. 39% of companies with more than 250 employees told Parseq’s researchers they wanted to move IT support to third parties, while 32% said they were looking at outsourcing data management.
SMEs are also keen to adopt technology services, with 24% and 20% of companies expressing interest in IT and data management, respectively. However, the biggest area of demand from sub-250 employee businesses is accounting and finance services, which 32% of respondents were keen to adopt.
Demand for outsourced services is expected to grow fastest in the manufacturing, financial services and healthcare sectors, where around three-quarters of organisations plan to increase their use of third parties to deliver back-office activities. In manufacturing, the volume of back-office activities delivered by third parties is expected to increase by 11% in the next three years, while responses from healthcare and financial leaders suggest that back-office outsourcing would increase by 6% in their industries.
The study also showed a strong correlation between the processes businesses consider outsourcing and those they want to transform with new technology. Parseq believes many companies will choose partners who can help them achieve sustained cost savings and business improvements by using tools such as AI and automation in their managed service offerings.
Craig Naylor-Smith, CEO at Parseq, comments: “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 smart play for the outsourcing industry is to lead that transformation and remove the risks associated with change by supporting clients with managed services that leverage the latest technologies.”