Market Insights Technology IT Services IT Outsourcing

Administration Outsourcing - United Kingdom

United Kingdom

Revenue in the Administration Outsourcing market is projected to reach €5.09bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.78%, resulting in a market volume of €6.74bn by 2029.
The average Spend per Employee in the Administration Outsourcing market is projected to reach €146.40 in 2024.
In global comparison, most revenue will be generated in the United States (€25,300.00m in 2024).

Key regions: China, United States, Germany, India, Japan

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Analyst Opinion

The Administration Outsourcing market in United Kingdom has been experiencing growth in recent years due to several factors.

Customer preferences: Many businesses in the United Kingdom are turning to outsourcing administrative tasks to reduce costs and improve efficiency. This is particularly true for small and medium-sized enterprises (SMEs) that may not have the resources to hire a full-time administrative staff. Outsourcing administrative tasks allows businesses to focus on their core competencies and improve productivity.

Trends in the market: One trend in the Administration Outsourcing market in United Kingdom is the increasing use of technology. Many administrative tasks can now be automated, which reduces costs and improves efficiency. This trend is expected to continue as businesses look for ways to streamline their operations.Another trend in the market is the increasing use of offshore outsourcing. Many businesses in the United Kingdom are outsourcing administrative tasks to countries with lower labor costs, such as India and the Philippines. This trend has been driven by advances in technology and telecommunications, which have made it easier to work with offshore teams.

Local special circumstances: Brexit has had an impact on the Administration Outsourcing market in United Kingdom. Many businesses are uncertain about the future of the UK economy and are looking for ways to reduce costs. Outsourcing administrative tasks to offshore teams can be a way to reduce costs in the short term.

Underlying macroeconomic factors: The United Kingdom has a highly developed economy with a strong services sector. This has created a favorable environment for outsourcing administrative tasks. Additionally, the UK has a skilled workforce and a favorable business environment, which makes it an attractive location for outsourcing providers.In conclusion, the Administration Outsourcing market in United Kingdom is growing due to customer preferences for cost reduction and efficiency improvement, the increasing use of technology, and the use of offshore outsourcing. Brexit has also had an impact on the market as businesses look for ways to reduce costs in an uncertain economic environment. The underlying macroeconomic factors in the United Kingdom, such as a strong services sector and a favorable business environment, have also contributed to the growth of the market.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.