A recent report from Kimon Services, a global outsourcing and business process solutions specialist, highlights how UK government policy changes are accelerating the shift toward offshore outsourcing of entry-level roles. Small and medium-sized businesses are increasingly turning overseas as rising costs at home make competitiveness harder to sustain.
The study identifies the increase in Employer National Insurance contributions, alongside growing compliance and wage obligations, as significant pressures pushing businesses to explore alternative workforce models.
The findings reveal that 62% of businesses surveyed are now considering outsourcing administrative roles abroad to reduce costs and protect profitability in an increasingly challenging market.
“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.”
According to the report, 24% of surveyed companies plan to offshore entry-level administrative and customer support roles within the next 12 months, while 16% have already outsourced part of their workforce following the most recent Employer NI rise.
Large corporations are also adopting this approach. Nationwide Building Society recently confirmed plans to transfer 1,000 roles to India, spanning HR, data processing, and customer service functions. Likewise, Asda has outsourced over 100 IT roles to India as part of a broader efficiency strategy.
Kimon reports a 40% year-on-year surge in inquiries from UK businesses seeking support for outsourcing areas like customer service, financial administration, and back-office processing.
The report concludes that without significant changes to government employment policies, the shift towards offshoring entry-level roles will accelerate, reshaping the domestic workforce landscape and challenging expectations about local hiring practices.
