Why UK firms are outsourcing customer support: The onshore vs. offshore playbook

August 5, 2025

British consumers have never been more demanding. Same-day delivery, always-on live chat and instant social replies are now expected as standard. But meeting those expectations with an in-house team can stretch payroll and technology budgets beyond what many firms can afford.

As a result, customer service outsourcing in the UK is increasingly common, and it’s not just the big corporations doing it. Mid-sized retailers, fintechs, e-commerce brands, and subscription services often turn to external partners as well. That raises an important question: how far afield should businesses look? Onshore solutions exist in the UK, but offshore offers unique benefits if you can identify the right location and partner.

The impact of rising expectations in UK customer service

According to a report from Salesforce, more than 40% of consumers and business buyers stop buying from a brand due to poor customer service experience. At the same time, tolerance for errors or slow resolution is dropping. Negative reviews travel fast on Trustpilot and social media, putting reputations at risk in hours rather than weeks.

Peaks in demand driven by holidays like Christmas or Black Friday, or viral product launches, only add to the pressure CX teams face. And realistically, maintaining the permanent headcount necessary to handle those spikes is impractical. However, failing to meet expectations can push hard-won customers to competitors.

Keeping CX onshore: The benefits and limitations

UK call centre outsourcing keeps operations within the home market, which has clear benefits. Agents share cultural references, slang and regional accents with callers, which can lift CSAT scores. Data residency rules are more straightforward, making compliance with the Data Protection Act and UK GDPR guidelines easier.

The downside, though, is price. Even basing CX hubs in lower-cost UK regions and sharing salaries across multiple clients can’t change the reality that the UK is a relatively expensive place to employ agents. Keeping outsourcing in the UK means salaries, office rents and energy bills remain high. In addition, contact centre jobs lack prestige in the UK — as reflected in high turnover rates (26% annually, according to the CCMA) — driving recruitment costs up.

Offshore alternatives: Cost, culture, and time-zone fit

Key offshore locations, such as Armenia and South Africa, offer a solution to the cost issue, while matching cultural and operational requirements on a like-for-like basis if you partner with an experienced provider.

South Africa offers a minimal time difference and close cultural ties with the UK. Labour costs can be 30–50% lower than onshore as the country’s education system produces graduates with high English proficiency and familiarity with British media and business norms. Air links are frequent, so client visits and joint training sessions remain feasible.

Armenia boasts a skilled and motivated talent pool with 40-50% lower rates than outsourcing destinations in Eastern Europe, such as Poland, Hungary or Romania. Teams are confident working in English at a highly technical level, and are well aligned with Western business culture. French, Arabic, and Russian are also widely spoken, useful for UK businesses trading globally.

The main challenges centre on data transfer rules and the need to align management styles. Clear service-level agreements and regular performance reviews help maintain consistency here.

Onshore vs offshore: Side-by-side comparison

Choosing a customer experience BPO partner you can trust

Shortlist firms with proven sector expertise. A retailer’s needs differ from those of a fintech bound by FCA rules. Ask for performance dashboards that track first contact resolution (FCR), net promoter score (NPS), and quality audit results.

Listen to live calls, speak with team leaders, and gauge staff tenure. Look for ISO 27001 or PCI-DSS certifications to gain peace of mind on data security. Working practices matter too: regular reporting, proactive communication, and open access to call recordings create transparency.

Finally, score potential partners on added-value metrics, such as integrated AI and automation to streamline workflows, VOC analytics, which help drive continual service improvement, and rapid upscaling and downscaling to ensure you can cover peak demand at short notice without overspending when CX requests are lower.

Building a future-proof CX partnership

UK call centre outsourcing offers businesses a practical route to reliable and scalable customer service, helping to offset some of the costs associated with running in-house CX teams. Today, reputable offshore partners like Sourcefit can guarantee the same standards of quality, responsiveness, and local knowledge that consumers expect from onshore operations at a fraction of the cost.

If you’re a UK business looking to build an offshore CX team that performs to the standards your customers expect without the hefty price tag of an in-house or onshore service desk, book a free consultation with Sourcefit today to explore your options.

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