How technology is levelling up the UK’s appetite for outsourcing talent
Thanks to advances in automation technology and artificial intelligence, UK businesses are leveling up their outsourcing talent acquisition strategies to great effect. With competitive costs and the addressing of key skill gaps, we may be on the precipice of an outsourcing boom.
According to a recent study from managed service provider Parseq, 71% of large companies and 24% of SMEs are intending to increase their reliance on partners for back-office support over the next three years, representing a trend that could be a catalyst for greater emphasis on outsourced services.
The study, which indicates that 1.3 million UK businesses could turn to outsourcing for back-office support by the end of 2027, is likely to see a greater level of focus turn towards talent acquisition technology to identify suitable candidates for roles worldwide.
Given technology’s role in bridging the gap between domestic and international recruitment, outsourcing may become far more prevalent across the UK’s tech sector, in which 81% of businesses are believed to be negatively impacted by a shortage of skilled workers.
Uniting Skills and Cost-Efficiency
There’s a wide world out there for UK businesses looking to outsource their way into bridging their skill gaps. But which nations are the best to choose from?
The answer is that it depends on your budget, sector, and specific services you require. Generally speaking, Asian nations like India and the Philippines are leading outsourcing options for a wide range of competencies.
The three key considerations that can decide whether a nation is appealing for outsourcing involve financial attractiveness, people skills and availability, and the wider business environment involving those nations.
If you’re looking to outsource in a nation that’s welcoming of international business, using an EOR in the Philippines opens the door to managed regulatory compliance while opening the door to potentially onboarding new employees within seven days, due to the nation’s friendly outsourcing environment.
In terms of bridging UK tech skill gaps, the Philippines is the most cost-effective nation to outsource to, with average hourly costs weighing in at $20-$49. However, other players like India, Romania, and the Czech Republic feature competitive average rates of between $25 and $55.
It may seem like a challenge to identify prospective talent to onboard internationally, but technological innovations are helping more businesses to take strides in talent acquisition on an international scale.
Inside AI’s Outsourcing Revolution
The artificial intelligence boom is already transforming talent acquisition and development for firms across a vast array of industries.
With the help of machine learning (ML) tools, it’s possible for automation technology to screen resumes and identify skilled candidates on an international scale, predict employee performance and team suitability, offer bespoke training programs to successfully onboard EOR recruits, and streamline workplace communication as a whole for hires.
Using the data points generated by artificial intelligence assistants, talent acquisition leaders are able to track trends, such as candidate qualifications, in-demand skills, and the effectiveness of sourcing channels, to shape more informed decisions.
These insights empower businesses to fill roles strategically by exploring the world for the best possible talent fits that align skills with the company’s broader business objectives.
According to a recent study by Deloitte, organisations with mature talent analytics capabilities are twice as likely to improve the quality of their recruiting efforts. When taking global talent pools into account, the technology can be an effective tool for bridging skills gaps.
Taking Talent Sourcing International
One of the biggest challenges facing businesses seeking to outsource their skilled roles lies in finding top talent.
Artificial intelligence platforms can utilise ML to assess multiple sources, including international job boards, LinkedIn, and company databases, to efficiently identify talent matches in a matter of seconds. These matches can be cross-checked with job descriptions before being listed with a suitability assessment score for decision-makers to assess.
These talent sourcing tools can be refined to look for specific candidate qualities based on job descriptions, taking into account communication needs and specific competencies when matching in-house styles.
It’s also possible for ML tools to review the qualities and resumes of successful candidates from the past to help shape what the ideal new recruit could look like, and how their tangible and intangible skills match up.
Bridging Skill Gaps
While more than four in five tech businesses in the United Kingdom have struggled to come to terms with talent shortages, adopting an international focus in outsourcing hires can help to create a more sustainable scaling process for the future.
Competitively priced overseas markets can not only help businesses to onboard skilled talent, but it can also help to build a workforce at a lower cost than hiring domestically.
The artificial intelligence boom is helping to improve the quality and efficiency of outsourcing, and businesses that are willing to embrace advanced tools in identifying the most suitable matches can enjoy the best results when it comes to building a sustainable operating model that’s resilient enough to withstand the challenges posed by scaling.