Call Centres Returning to England, Part 2

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TAGS: Employment
How Many Call-Centre Roles Are Offshore?
Despite growing demand, nearly half of UK companies (48%) now outsource business functions abroad—a 41% increase since the pandemic—with £500 billion allocated to outsourcing in 2022. In 2024, the UK’s call and contact-centre outsourcing market generated US$5.67 billion, projected to reach US$7.79 billion by 2030 (CAGR of 5.4%).
Yet domestic employment is stagnating:
- In 2024, 50,519 people were employed in UK call centres—virtually zero growth (+0.1% over 2023) and a slight decline since 2019.
- The total UK call-centre industry’s market size is estimated at £4.5 billion in 2025, across approximately 1,013 businesses. The WEU is currently researching which of these companies are based in England.
Do Companies Disclose Overseas Staff Numbers?
Public reporting on offshore call-centre staffing is limited. A few multinationals mention reshoring efforts but seldom provide exact counts:
- Lloyds Banking Group shared only ratio details for IT roles (e.g., 60% UK, 40% overseas).
- Trade-union linked research suggests that up to 180,000 financial services jobs might have been relocated by 2010, though precise figures are scattered.
Overall, UK companies are not legally required to report overseas staff numbers. This could easily be made a compulsory disclosure.
Why Companies Relocate Overseas: Fresh UK Government Policies at Play
- Rising UK labour costs: The National Living Wage rose from £11.44 to £12.21/hour, and employer National Insurance contributions increase from 13.8% to 15% in April 2025, narrowing the cost gap with offshore locations.
- Offshore inflation and fatigue: India and the Philippines now offer less dramatic cost savings; in 2024, European businesses accounted for 77% of IT outsourcing, while India’s share fell to 17%.
- Domestic market demand: Britain’s Business Process Outsourcing (BPO) sector, which includes call centres, reached US$31.5 billion in 2024/25, growing at 4.5–5.5% annually.
Economic Impact of Bringing Jobs Back
- Job Gains & Tax Boost: Repatriating just 5,000 call-centre roles at an average salary of £30,000 could generate up to £35 million in income tax and NI contributions each year (~£7,000 per role).
- Ripple Effects: UK businesses spend about £65 billion annually on offshore IT services. Redirecting even a fraction domestically could create over 1 million quality jobs and yield ~£20 billion per year in extra tax and NI.
- Reduced Hidden Costs: UK-based centres typically see lower staff turnover (~12% vs. 24–75% offshore), shorter handling times, and improved customer satisfaction.
Taxing Offshoring vs. Incentivising Onshoring
- Penalties Not Yet in Place: The UK Government currently lacks any specific tax targeting offshoring, despite calls for “outsourcing taxes.”
- Incentives Gaining Ground: Other nations offer bonuses and tax credits for reshoring (e.g., France’s PACTE law, various US state incentives). The UK must explore similar measures to remain competitive.
Global Case Studies
- France & Italy: Government onshore incentives have supported moderate service-sector repatriation.
- US: Federal and state onshoring programmes have returned manufacturing and service jobs with mixed results.
Outlook & WEU Campaigning Overview
The latest data shows UK firms still offshore nearly half of core business processes. While outsourcing value grows, domestic call-centre employment remains stagnant. Rising labour costs and hidden inefficiencies make reshoring increasingly attractive.
The WEU believes the UK Government must require all English companies to declare how many jobs are relocated overseas.
Repatriation can deliver meaningful economic gains—from tax revenues and local employment to enhanced brand loyalty. Punitive taxes may prove politically challenging; therefore, incentive-driven strategies should be prioritised. If incentives fail, targeted taxes will be essential.
For more on why call centres returning to England makes economic sense, see our detailed analysis: Call Centres Returning to England: Why Now and Why WEU Campaigns
workersofengland.co.uk | Independent Workers Trade Union