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Outsourcing in the UK on the rise, despite Brexit

Outsourcing in the UK has seen a significant rise in the first half of this year, compared to the same time last year, which is interesting knowing how Brexit vote turned out.

The information came from customer service provider Arvato UK. Its recently released Outsourcing Index says that £3.91 billion worth of contracts were signed in the first half of 2016. That equals to 19 per cent year-on-year increase.

The majority, £2.20bn, came from the private sector.

“The UK market remained buoyant in the first half of the year despite the political and economic uncertainty in the run up to the EU referendum,” said Bryan Mouat, CEO, Arvato Financial Solutions UK & Ireland.

“This supports the view that organisations continue to see outsourcing as an effective strategy to tackle key challenges and fluctuation in demand, but it remains to be seen if the prolonged uncertainty following the vote to leave will dampen spending in the second half of the year.”

Value of the average contract increased 16 per cent in the first half of 2016, compared to the same period last year. Total value hit £47.5 million. Length also increased 14 per cent, to 59 months’ time, average.

When it comes to outsourced customer service, total spend hit £706 million in H1 2016. This is a ‘sharp rise’, compared to the £62 million worth of deals agreed in the first half of 2015.

A vast majority (83 per cent) covered multi-channel services, compared to 50 per cent last year.