News in the Channel – issue #25

NEWS

CONTINUED

Mesh Wi-Fi systems, and advanced management platforms, Purdicom is positioned to further expand its reach in the ISP market. This collaboration ensures

end-to-end solutions for ISPs, while empowering MSPs to deliver reliable, scalable and easy-to-manage networks for their clients.

Businesses to boost back-office outsourcing by billions in 2025

More than half (57%) of UK organisations plan to increase the level of business processes outsourced to third parties next year, according to a survey of business leaders conducted for Parseq. Parseq estimates this extra activity could be worth up to £3 billion in additional income for the UK outsourcing industry in 2025.

micro-organisations with fewer than 10 people to over 99% of large businesses today. Growth in 2025 will come from companies of all sizes, including 56% of micro, 80% of small (10-49), 89% of medium (50-249), and 99% of large businesses l O utsourcing levels are highest in the public, technology and financial services sectors, where more than six in every 10 businesses use partners for back-office processes, and almost 70% of activity is trusted to third parties l Organisations in London and the East Midlands make the greatest use of outsourcing. About six in 10 businesses in these areas use partners to deliver 13% of their back- office activities and 63% of companies in both locations plan to start or increase outsourcing in 2025 l The lowest levels of outsourcing are in the Southwest, where 23% of businesses use third parties, and just 1% of back-office activity is outsourced today. “Outsourcing is on the up, driven by talent and cost challenges, and growing recognition that businesses can realise efficiencies of scale and automation through partners that already have that expertise and a critical mass of people and technology,” said Craig Naylor-Smith, CEO at Parseq. “Organisations are outsourcing back- office functions to access specialist skills, cut costs and focus on their core competencies. This is a long-term trend that wage inflation and increases in national insurance contributions will only accelerate.”

Click here to see report

Parseq’s State of UK Back-Office Outsourcing analysis revealed that

accounting and finance services providers look set to gain the greatest amount of new business. Parseq’s study indicates that 21% of companies plan to start outsourcing aspects of these functions or increase the level of activity trusted to third parties in 2025. Customer communications outsourcing, including contact centre and digital mailroom services, will also rise significantly in 2025. Parseq’s analysis suggests that 20% of all companies will start or increase their use of third parties to deliver this function in 2025. Parseq’s analysis draws on a survey of business leaders conducted by Censuswide in October 2024 and research published by the Department for Science, Innovation & Technology in February, which indicated that UK outsourcing companies generated combined revenues of £52.6 billion in 2022. While 23% of businesses are interested in outsourcing to reduce their costs, access to specialised skills (32%) is the main driver for trusting back-office activities to partners. Back-office outsourcing by business size, sector and region: l Outsourcing of processes increases with business size, from 53% of

Craig Naylor-Smith ceo

parseq.com

Organisations are outsourcing back-office functions to access specialist skills, cut costs and focus on their core competencies. “ ”

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