Fuelling growth - for business and the economy alike

Outsourcing - an engine for growth

Analysis of outsourcing’s contribution to the UK economy reveals an industry that is powering growth on two fronts: as a growth sector in its own right and – more importantly – by enabling the companies it works with to expand and develop their own businesses.

Combining independently commissioned research and thinking from leading industry analysts, Open Outsourcing sheds new light on how is contributing to the expansion plans of UK businesses and how the industry’s own prospects make it a significant growth engine for the UK economy.

With the UK’s business process outsourcing (BPO) market set to outgrow the wider economy by an estimated 4.75% in 2013 and the majority of BPO clients expecting to continue to outsource for growth, the industry should continue to benefit the wider UK economy.

Source 1: Oxford Economics 2011 – Oxford Economics defines outsourcing as “The supply of services governed by an ongoing or time-specific agreement involving a degree of delegation of management responsibility, where that service would more typically be provided, or would in the past (UK 1950s-2000s) have been more typically provided, by an in-house team of the customer themselves” , Source 2: Capital Economics, Source 3: NelsonHall 2013

In Arvato’s first Open Outsourcing report, “Effective Engagement”, our independently-commissioned research found that the drivers for outsourcing are changing. Two thirds (66%)1 of senior BPO clients revealed that they had outsourced as a means to enable some form of expansion. As a part of this report we revisited this group to see what impact outsourcing has made on their growth strategies since we spoke to them in 2012.

Behind the statistics on overall growth, the scale of change experienced by those businesses that have grown revenues and profits because of their BPO partnership was significant.

Our research partners also quizzed the panel about the key to their success and the ingredients that are needed in an outsourcing partnership to help unlock growth.

Source 1: Coleman Parkes Research, based on interviews with 100 senior BPO clients in September and October 2012, Source 2: Coleman Parkes Research, based on interviews with 30 senior BPO clients from the 2012 panel, May and June 2013
Source: Coleman Parkes Research, based on interviews with 30 senior BPO clients from the 2012 panel, May and June 2013