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  • juliebarry9

Spoiler alert! Outsourcing is on the rise.

Updated: Oct 21, 2021

As the founder of a business providing outsourced business development resource, I have undertaken a lot of research into outsourcing, to fully appreciate why businesses outsource to 3rd party service providers, what activities they outsource and whether the principle of outsourcing is on the rise. My findings have been very interesting and, in some cases, surprising so I thought I would share them. My first surprise was that, according to YouGov, 70% of UK businesses outsource to 3rd parties whist 25% have never outsourced any services at all.

But why is outsourcing so popular for business?

  • It enables the business to benefit from specialist expertise

  • It is a cost-effective approach to accessing multiple skills and experience

  • It is flexible and scalable to meet your needs and budget

  • It allows for a new pair of eyes and a new perspective to enter the business

We all recognise and accept that many services needed to run a successful business require specialist knowledge and experience. Accountancy for example. We readily accept that many companies outsource their accountancy or book-keeping services to a 3rd part provider. The same can be said for IT services. Accountancy is the most outsourced service for small companies whilst IT is the most common service outsourced by larger companies.

There is a rise in other areas of specialism being outsourced too. HR services and Recruitment along with Marketing are also popular services for a 3rd party provider to supply. Nearly 50% of UK businesses outsource their accountancy, 14% use 3rd party recruiters and 9% have all their HR services met by outsourcing.

There are two main factors driving the rise in outsourcing, expertise and cost. However, business transformation & growth also see UK companies looking towards the outsource market.

71% of UK businesses say cost is the main driver, whilst half of the companies surveyed said the quality of service provided is also a key factor.

Experts think that businesses will reduce costs as they attempt to recover from the coronavirus pandemic and therefore expect to see a rise in outsourcing. However, many also have concerns about how inflexible contract clauses could deter some businesses from outsourcing in the post coronavirus period.

When we consider the current economic climate, where many businesses are looking to rebuild regroup and move forward, it is reasonable to expect cost and expertise to be high on the agenda.

Whilst outsourcing isn’t the answer for all businesses, seven out of ten businesses agree it is a viable option. However, before leaping into outsourcing, take the time to carefully consider the pros and cons, carry out cost-benefit analysis and ensure that the company you use has the skills, experience, and expertise to deliver.

If you are looking to grow your business and are considering outsourcing part or all of your business development function, we would love to have a chat with you about your needs and how Pro-Team BD could help. Contact me at or call me, Julie Barry on 07885 911877

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