A detailed new study by Kimon Services, an international outsourcing and business process solutions provider, has revealed that UK government policy changes are placing unprecedented pressure on small and medium-sized businesses, fuelling a growing trend towards outsourcing entry-level roles abroad.
According to the report, the combination of higher Employer National Insurance contributions, increased compliance demands, and stricter wage obligations is forcing many UK companies to re-evaluate their staffing strategies.
The study found that 62% of surveyed businesses are actively considering outsourcing entry-level administrative roles overseas as a cost-saving measure and survival strategy amid rising operational pressures.
“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.”
The findings also reveal that 24% of companies plan to move administrative and customer service roles overseas within the next 12 months, while 16% have already outsourced parts of their operations following the latest Employer NI increase.
Several large organisations are leading this transition. Nationwide Building Society has announced plans to relocate 1,000 roles to India, spanning HR, data processing, and call-centre functions. Similarly, Asda has outsourced over 100 IT positions to an India-based provider as part of its broader cost-optimisation strategy.
Reflecting this shift, Kimon has recorded a 40% year-on-year increase in outsourcing inquiries from UK firms seeking support with customer service, finance administration, and back-office operations.
The report concludes that without policy changes to ease UK employment costs, the outsourcing trend will likely accelerate, fundamentally transforming where entry-level work is performed and redefining the expectations of domestic hiring.
