As per the new figures, the annual value of outsourcing contracts did hit a record level in the first three months of 2017. The UK is the world’s largest market after the US. ISG or International Service Group clearly indicated that the UK makes up for around 80% of all contracts across the major European nations.
The outsourcing industry is considered to be an imperative part of the UK economy. Brexit did slow down the European outsourcing process but it will not really stop the process. The reasons are stated below:
UK’s market is ripe for outsourcing. Business Process Outsourcing in the UK is growing and the major changes in the market include, shift to cloud and automation
The only change that Brexit will bring in is automation that will lead to more savings than labor arbitrage
Traditionally considered to be the arena of bigger businesses, smaller companies and startups are also outsourcing many of their in-house jobs. Experts say that few things should not be outsourced by startups. Choosing the right provider is not an easy task.The core activities to which your reputation is linked should never be handed over to a third-party.
The key elements of customer support should be in your hands so that the people of your organization directly get to know the problems which customers are facing.
Kathryn Moran, head of outsourcing at accountants haysmacintyre, says small and medium-sized enterprises (SMEs) should research a minimum of three providers before making a decision and should then arrange to test services and agree on fees and timescales. Kathryn Moran, head of outsourcing at accountancy firm haysmacintyre, adds: “We have seen a general shift in SMEs realizing that outsourcing is now a crit – local part of the risk management toolkit, rather than simply a means to save costs. Outsourcing provides today’s SME with a breadth of skill base and expertise not generally available to them in a single hire. “Tony Price, PwC partner, Tony Price, PwC partner and My Financepartner leader, says SMEs and startups should talk to peers about which providers they are with and ensure prospective providers have good references from existing clients. An entrepreneur such as Helen Rolfe, owner of tablet accessories company Lente Designs, says providers have been proactive, but careful consideration is needed to find the right partner. “Over the years, people had been calling and talking about products – they found us,” says Ms. Rolfe, who uses Fulfilment by Amazon for logistics and shipping within the UK and overseas. Those who consider outsourcing to providers based abroad may have to contend with some different challenges than those who choose onshore firms. “Foreign firms continue to offer competitive pricing where their employment costs are lower,” says Ms. Moran. “However, the advent and advances in technology have meant that some of these services are now accessible by SMEs in the UK, as price points have changed with efficiencies gained through technology. “Ultimately, SMEs now have ready access to a wide range of outsourcing solutions both at home and overseas,” she says. “Language and culture continue to be considerations for the SME, and we have seen some foreign firms responding to this by investing heavily in the training of their own workforce.”