In uncertain markets, businesses are looking to control as many of their costs as possible – and IT budgets are no exception.
As such, outsourcing IT in the UK is on the rise. However, there is more driving this trend than economics alone: below, we explore how political and technological changes are accelerating the shift towards outsourcing.
The Landscape Of IT Outsourcing
As of 6 April 2025, employers’ National Insurance (NI) contributions increased from 13.8 % to 15 %, while the point at which contributions begin dropped dramatically—from £9,100 to just £5,000 annually (Sage). The combined effect is a significant cost pressure on hiring in‑house IT personnel. For the average UK employee on £33,000, that’s roughly an extra £900 annually per hire according to The Times.
This environment is prompting organisations to explore alternatives – chiefly, IT outsourcing in the UK. Outsourcing enables businesses to retain service quality without investing in permanent payroll, benefits, or administrative overheads. The rise in contractors and external service models is not merely tactical but increasingly strategic.
The Global Shift Meets A Localised Reality
Trends in the UK match those in other countries. Globally, the IT outsourcing market is projected to grow from around $512 billion in 2024 to potentially over $1.18 trillion by 2030.
The key trends driving this include:
- A pivot towards data-driven decision-making, enabling smarter, evidence-based outsourcing choices.
- Artificial intelligence (AI) and machine learning becoming central to outsourced operations.
- Adoption of cloud‑native, multi‑cloud, and hybrid outsourcing models, offering both scalability and risk resilience
These global dynamics offer UK businesses a timely and strategic chance to leverage IT outsourcing, pairing immediacy with long‑term adaptability.
Resilience = Relevance: Cloud Outsourcing Gains Ground
The trend to outsourcing is not just reserved to IT helpdesk service.
A complementary perspective has been offered by Cloud Computing News, which spotlights how cloud‑based IT outsourcing bolsters business resilience as we navigate an unpredictable landscape arxiv.org+7cloudcomputing-news.net+7Lorien+7.
Outsourcing cloud infrastructure and expertise is allowing organisations to focus on core activities while staying agile and responsive to unforeseen changes – whether regulatory, economic, or technological.
This emphasis on resilience dovetails precisely with the demands placed on UK firms amid rising operating costs.
Cost, Compliance, and Cyber Resilience: A Triple Imperative
Several intersecting pressures reinforce the logic of outsourcing:
- Cost control: NI hikes magnify employment expenses—outsourcing sidesteps many such incremental liabilities.
- Operational resilience: Hybrid and cloud‑based outsourcing ensures continuity and scalability, aligning with future‑proof infrastructure strategies.
- Regulatory expectations: The UK’s evolving cyber‑resilience regime – such as the forthcoming Cyber Security and Resilience Bill – pivots on supply chain security and managed‑service robustness. Outsourced IT providers often possess the specialist capabilities to meet those rising standards more effectively than overstretched internal teams.
Each organisation will have their priority among these drivers, but there is no doubt that each has some contribution to the decision to outsource.
What The IT Outsourcing Trend Means for UK Decision‑Makers?
If you’re weighing IT outsourcing as a strategic option, there are various angles to consider. The table below assesses the most common ‘push-pull’ factors:
| Strategic Factor | In‑House Hiring | Outsourced IT |
| National Insurance Costs | High incremental impact | Avoided for contractors/MSPs |
| Flexibility & Scaling | Slow, tied to hiring | Rapid scaling via vendors |
| Tech Innovation | Risk of stagnation | Ready access to AI, cloud, RPA |
| Resilience & Continuity | Often ad hoc | Built into SLAs and cloud models |
| Regulatory Readiness | Patchy capabilities | Often built with compliance in mind |
Outsourced IT: Actionable Next Steps
For organisations considering IT outsourcing in the UK, any move can be daunting. The steps below offer a clear process for assessing and progressively transitioning to an outsourced IT model:
- Audit total staffing costs: This should include NI‑driven increases, to highlight the benefit of flexible models.
- Map operational risk: identify which IT services (e.g. cloud infrastructure, security support, app delivery) are critical and could benefit from outsourcing resilience.
- Vet providers: Check for both technical capability and regulatory alignment—especially in cyber security and managed services (which fall under the evolving UK resilience framework).
- Pilot hybrid models: Begin with discrete functions or projects to test responsiveness, cost and value of outsourced support.
- Track performance rigorously: SLA adherence, innovation delivery, business continuity—all should be measured to build a compelling case for broader adoption.
IT Outsourcing In The UK: Is It The Right Time For You?
For many, rising National Insurance contributions and other PESTEL challenges are not just a fiscal challenge but a strategic tipping point that’s been a long time coming.
They prompt UK organisations to reassess the economic feasibility of traditional hiring, and alongside global outsourcing market momentum and heightened resilience demands, IT outsourcing is no longer a fringe tactic; it’s increasingly central to business IT strategy.
Consider the shift not just as cost-saving, but as repositioning: agile, resilient, scalable, regulation-ready. The logic is compelling, the infrastructure exists—and the moment to act is now.
Exploring the potential of IT outsourcing for your organisation? Speak to Akita’s experts to assess the right fit:
Contact Us
