UK contact center outsourcing shifts to AI, ESG, outcome models: CCMA
LONDON, UNITED KINGDOM — The UK contact center outsourcing market is undergoing a strategic transformation, with flat growth masking deeper shifts toward AI, outcome-based partnerships, and environmental, social, and governance (ESG)-driven procurement.
A Contact Center Management Association report states that while the sector remains valued at $7 to $9 billion, enterprises are prioritizing value-added services, such as advanced analytics and conversational AI, even as voice channels retain a 70% dominance.
AI augmentation is driving the sector’s efficiency
AI is reshaping the UK’s contact center outsourcing landscape, but human agents remain indispensable for handling complex and emotionally charged interactions.
Generative AI and agentic AI are already being tested in real-time sentiment analysis and post-call summaries, but complete automation remains uncommon, as concerns persist regarding cost, compliance, and customer trust.
The report notes that AI’s most effective use is as a partner for human analysts, filtering out false positives and accelerating research while leaving critical decisions to them.
Outcome-based partnerships replace transactional models
Customers will no longer accept cost reduction as a business outcome; instead, they seek quantifiable business value, such as increased Net Promoter Scores or revenue growth.
With more and more contracts being linked to results such as customer lifetime value, over 15% of customer experience management (CXM) spending goes to digital services in 2024, including AI, analytics, and increased customer spend and consumer-to-business dealings in 2023, which is up by 4% from 2022, with a projection exceeding 25% by 2026.
TP (formerly Teleperformance) and Concentrix offer distinct omnichannel solutions, as buyers currently evaluate how well these companies align with their culture and demonstrate innovation. Both TP and Concentrix are in the Top 10 of the OA500 2025, an objective index of the world’s top 500 outsourcing companies.
ESG and social value define procurement decisions
ESG factors are now critical in outsourcing contracts, driven by the UK’s Public Services (Social Value) Act 2012 and later the Procurement Act 2023.
Buyers evaluate suppliers on local job creation, carbon footprint reduction, and inclusive workplaces, with 10% weighting mandated for public sector tenders.
Competitive advantages include employee well-being and ethical wages. However, challenges persist, including “value washing” by suppliers and small and medium enterprises (SMEs) struggling to meet reporting demands.
With ESG standards becoming the mainstream factor in both corporate and government decision-making, procurement teams are shifting gears into strategically managed entities capable of executing a positive social influence linking a variety of sourcing options, such as supplier diversity, ethical sourcing, and sustainability, to generating a significant community good with tangible results in line with the bottom line.
Hybrid offshore strategies balance cost and quality
While 70% to 75% of UK CXM outsourcing is handled offshore, hidden costs like attrition and cultural misalignment are prompting hybrid models. Complicated questions remain onshore, but routine work is moved to low-cost locations such as Eastern Europe and Egypt.
The report cautions against relying too heavily on a single supplier or a single region, advocating for multi-location sourcing instead. As an example, the combination of both UK and South African teams is used to maximize time zones, and an empathy-based service is provided to support high prices.
Long-term success in the UK outsourcing market will be determined by the need to reconcile the promise of AI with human expertise, embed ESG into contracts, and provide much-needed diversity in the way delivery is carried out.
As Leigh Hopwood, Chief Executive Officer (CEO) of CCMA, notes, “Organizations are navigating a landscape of continual disruption led by ever-changing macroeconomic events. Against this backdrop, outsourcing can often emerge as a strategic lever for agility and resilience. But as we always discover from producing this report, it’s the collaboration, expertise, and adaptability of a world-class partner that can make all the difference.”
