UK firms turn to AI-driven outsourcing amid skill gaps: Parseq study
ENGLAND, UNITED KINGDOM — Businesses in the United Kingdom are increasingly leveraging AI and automation to improve outsourcing strategies, addressing critical skill shortages while cutting costs.
A Parseq study reveals that most of the large firms plan to expand back-office outsourcing by 2027, with tech-driven talent acquisition leading the charge.
AI and automation are reshaping outsourcing strategies
AI-powered tools now screen resumes, predict employee performance, and streamline cross-border hiring—key advantages as 81% of UK tech firms struggle with skilled worker shortages.
Machine learning (ML) platforms analyze vast talent pools, assessing qualifications and cultural fit in seconds. Deloitte’s research shows firms using advanced talent analytics are twice as likely to improve hiring quality.
Andrew Kulimov writes that for businesses, this means faster, data-driven decisions—whether sourcing software developers from India or customer service agents from the Philippines.
As automation refines recruitment, outsourcing transitions from a cost-saving tactic to a strategic growth lever.
Competitive global markets offer cost-effective talent solutions
The Philippines, India, and Eastern Europe are emerging as top outsourcing hubs, balancing affordability with expertise. Hourly rates in the Philippines average $20 to $49, while India and Romania offer rates between $25 and $55—significantly lower than domestic hires.
Employers also benefit from streamlined compliance; using an Employer of Record (EOR) in the Philippines, for instance, allows onboarding in as little as seven days.
Beyond cost, these regions address niche skill gaps. The Philippines excels in IT and customer support, while Eastern Europe provides strong engineering talent.
Since 1.3 million UK businesses are likely to outsource, it’s no longer just about saving money but also about being able to scale up.
Matching candidates and company needs with AI helps businesses to hire people who are well-suited for the job.
