Is the UK Outsourcing Market Shifting From Cost to Capability?

The latest edition of our flagship annual UK Contact Centre Outsourcing Report is aimed at bringing vital clarity to buyers and managers of outsourced customer operations, at a time when geopolitics and the rise of artificial intelligence (AI) are making the decision-making process increasingly complex.

Produced with key insights from The Knowledge Group (tkg) and written by a range of industry experts, this year’s report explores the forces shaping how organisations are spending their outsourcing budgets – from the short and long-term impact of AI to the evolving cost-of-service equation.

It also provides advice for every step of the buying journey and looks closely at how UK-based providers are setting themselves apart through deeper partnerships, stronger cultural alignment and more flexible service models.

A Market Evolving

Now in its fourth year, the UK Contact Centre Outsourcing Report is a detailed analysis of the UK’s Business Process Outsourcing (BPO) industry and highlights why UK outsourcing continues to provide an attractive opportunity to buyers, despite the pull of outsourcing offshore and the continual talk of market disruption, driven by AI.

A central theme emerging is that the role of outsourcing is not diminishing in the age of AI, but evolving. While automation is expected to reduce lower‑value contact volumes, organisations are increasingly relying on outsourcing partners to deliver higher-value, complex and regulated interactions where human expertise remains critical.

“Our 2026 report highlights that outsourcing is not being replaced by AI, it is being redefined by it,” said Leigh Hopwood, CEO, CCMA. “What we are seeing now is a shift away from models built on volume and cost, toward those built on capability, accountability and outcomes.

“AI is reducing some of the routine work, but what remains is more complex, more regulated and more valuable. That puts a premium on partners who can combine human expertise with intelligent automation and deliver consistently in high‑stakes environments.

“For organisations looking at their sourcing strategy in 2026, the real opportunity isn’t just to outsource differently, it’s to develop partnerships that are fit for a much more complex future.”

The report also finds that the UK market is “repricing”, with buyers placing greater emphasis on outcome-based value, specialist capability and resilience rather than headline cost metrics.

Spencer Brooks, Group MD and Co-Founder of tkg added that the report draws on extensive market data and industry insight to “provide an evidence-based view” of how UK contact centre outsourcing is evolving.

“This offers organisations a clearer understanding of the factors shaping capability, service design, and commercial models at a time of increasing complexity across the sector,” he said.

The UK Contact Centre Outsourcing Report 2026 was launched by the CCMA and tkg at the UK House of Lords on 21 May and outlines a new “outsourcing playbook” for buyers, encouraging organisations to move beyond traditional procurement approaches towards long-term partnership models that prioritise innovation, data transparency and measurable outcomes.

The report is available exclusively to CCMA members. You can access the report here.