A comprehensive new study by Kimon Services, an international leader in outsourcing and business process solutions, has found that UK government policy changes are driving a major shift towards offshoring entry-level roles, as small and medium-sized businesses battle rising operational costs.
The report highlights the recent rise in Employer National Insurance contributions, combined with stricter compliance demands and higher wage obligations, as key factors leaving many UK companies struggling to maintain competitiveness.
According to the study, 62% of UK businesses surveyed are now exploring outsourcing entry-level administrative roles overseas as a core survival strategy.
“Businesses across the UK are constantly telling us the same story: the rising cost of employing staff is eroding margins and threatening viability,” said Michael Kitt, CEO of Kimon Services. “Outsourcing is no longer just a cost-saving measure; it’s become a lifeline. Kimon helps companies navigate this shift responsibly, ensuring they can focus on growth while we deliver skilled, reliable, and most importantly, cost-effective teams to support their operations.”
The findings also show that 24% of surveyed firms plan to outsource admin and customer support roles abroad within the next 12 months, while 16% have already taken action, shifting parts of their operations following the most recent Employer NI increase.
Big businesses are also joining this trend. Nationwide Building Society recently unveiled plans to relocate 1,000 back-office and customer service roles to India, covering HR, call-centre operations, and data processing. Similarly, Asda has outsourced over 100 IT positions to India in line with a broader support outsourcing strategy.
Reflecting this growing demand, Kimon has seen a 40% annual rise in inquiries from UK-based companies seeking assistance with customer service, finance administration, and back-office functions.
The study warns that without government intervention to ease rising employment costs, outsourcing will continue to accelerate, fundamentally transforming how and where entry-level work is performed and redefining traditional expectations of domestic hiring.
