As many of you know, we work with companies who want to outsource dev work, and in the last few years there’s been a huge boom in the number of businesses in the UK sending their work elsewhere. So, we decided to found out exactly just how many had done so. Here’s what we found.
Of the 3,000 UK businesses we asked, more than four fifths (84%) of them said they are outsourcing work abroad, rather than using UK-based talent, with software development being the most commonly outsourced work. This was followed by financial services, and marketing – all tasks which can be carried out remotely thanks to technology.
The survey also asked the founders to list the main reasons in deciding to outsource their work, which more than three quarters (78%) stated ‘more efficient teams’, whilst more than two thirds (67%) said the ‘heightened skill level’ was a major factor. The third most commonly stated reason (39%) was ‘better value for money’. On top of this, more than half (51%) stated their main reason as ‘the speed of getting a team in place, and ‘easier growth leading to more UK hires’
The survey asked start-up founders to list the main reasons influencing their decision to outsource software development work:
1. Access to more efficient teams (78%)
2. Heightened skill level (67%)
3. Better value for money (39%)
4. Speed of getting a team in place (26%)
5. Easier growth (25%)
6. More efficient project management (20%)
7. Avoiding long recruitment process (19%)
8. Greater focus on core business (18%)
9. Round-the-clock business operations (14%)
10. Increased reach (9%)
Of the businesses that outsourced development work, nearly two thirds (62%) said that they most commonly hire teams in Eastern European countries, such as Ukraine, Bulgaria, the Czech Republic and Romania, whilst more than three quarters (76%) of people who said they’d outsourced financial services had done so to the Netherlands and Germany.
Elliot Thomas, founder of Clockers, commented:
“It’s no secret that outsourcing gives access to some of the best teams in the world, but still almost half of UK companies are missing out due to common misconceptions. With increasing pressure on businesses in uncertain times, we are beginning to see more and more companies tap into the great resources available from our Eastern European neighbours.
“By outsourcing work in this way, change can be implemented more swiftly and growth can be substantially swifter, eventually leading to more jobs here in the UK.
“Hopefully these results will encourage more businesses to consider outsourcing to not only give themselves access to the skilled workers they need, but also provide more opportunity to focus on strengthening other core processes.”