41% of UK firms to outsource payroll, tax in 2025: Evelyn Partners
LONDON, UNITED KINGDOM — The outsourcing industry is experiencing significant growth as UK businesses face fast-tracked exits, skills shortages, and increasing operational complexity.
According to research by Evelyn Partners, 41% of business owners with turnovers above £5 million (US$6 million) plan to outsource internal functions like payroll and tax in the next year. This marks a sharp rise from just 2% currently using such services.
Helen Bassett, a partner in Evelyn Partners’ business outsourcing services team, explained the shift: “We’re seeing a significant increase in demand for outsourced services from businesses with shorter life cycles, such as tech firms. These businesses grow quickly and exit quickly, so are often less keen on building and running internal teams.”
Cost pressures and skills gaps drive outsourcing uptick
The growing reliance on outsourcing is fueled by the need to reduce costs, scale efficiently, and access specialized expertise. Many firms are struggling to recruit skilled employees in areas like finance while also keeping up with rapid technological advancements.
“Technology is transforming back-office functions, with automation tools, robotics and cloud-based services delivering significant benefits,” Bassett noted. “But this requires significant investment not only in the latest hardware and software, while also posing challenges in finding skilled employees in specialist areas such as finance.”
Outsourcing enables businesses to sidestep these challenges by leveraging the expertise of specialist providers who invest in cutting-edge tools and employee training.
Fast-tracked exits accelerate outsourcing adoption
The trend is further driven by an increase in accelerated business exits. Evelyn Partners’ earlier research revealed that nearly 29% of business owners fast-tracked their exit plans in the past year—up from 23% just 18 months ago.
This urgency has heightened the need for streamlined solutions that allow businesses to focus on core operations while ensuring critical back-office functions remain efficient.
Outsourcing as a strategic solution
Outsourcing is emerging as a vital strategy for businesses navigating today’s complex landscape. It allows firms to remain competitive by focusing on growth while delegating essential but resource-intensive tasks to external experts.
Bassett summarized the appeal: “Outsourcing is a simple way for fast-growing firms to stay focused on their core business while also making sure that essential back-office functions are running smoothly.”
As businesses continue to adapt to rapid changes and challenges, outsourcing is poised to become an even more integral part of their operational strategies.
