Part 2 – Reshoring Call‑Centre Jobs to England*: The Latest Stats & Insights
How Many Call‑Centre Roles Are Offshore?
- 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 grow to US$7.79 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 5.4%. *England needs to have its own economic data and those figures need to be clear, what impact is having on the workforce in England.
Yet domestic employment is stagnating:
- In 2024, 50,519 people were employed in UK call centres, showing virtually zero growth (+0.1% over 2023) and marking 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*, growing at a CAGR of 9.4% from 2019–2024 (* The WEU is currently researching which of these companies are based in England)
Do Companies Disclose Overseas Staff Numbers?
Public reporting on overseas call-centre staffing is limited. Some multinationals mention their reshoring efforts, but few provide exact counts:
- Lloyds Banking Group, for instance, shared only ratio details for IT roles (e.g., 60% UK, 40% overseas)
- Trade unions and Trade Union-linked research have occasionally uncovered figures (e.g., 180,000 financial services jobs could have been relocated by 2010 but these relate broadly to financial services and the information is limited)
Overall, UK companies are not legally required to report overseas staff numbers, and disclosures are generally voluntary and sporadic. (This could easily be made a compulsory disclosure)
Why Companies Relocate oversees: Fresh UK Government Policies at Play
- Rising UK labour costs: With the National Living Wage rising from £11.44 to £12.21/hour and employer NIC increasing from 13.8% to 15% in April 2025, the cost gap with offshore locations is narrowing.
- Offshore inflation and fatigue: India and the Philippines now offer less dramatic cost savings; European businesses in 2024 accounted for 77% of IT outsourcing, India only 17% .
- Domestic market demand: In 2024/25, Britain’s Business Process Outsourcing (BPO sector) that include call centres reached US$31.5 billion, growing at 4.5–5.5% annually
Economic Impact of Bringing Jobs Back
- Job Gains & Tax Boost
Bringing back even 5,000 call-centre jobs, earning £30k/year, could generate up to £35 million in income tax and NI annually (circa £7 k per role) - Ripple Effects
UK businesses spend about £65 billion yearly on offshore IT services. Redirecting even a fraction domestically could yield over 1 million quality jobs, with an estimated £20 billion per year in extra tax and NI. (Employment opportunities across England would develop) - Reduced hidden costs
UK centres perform better: 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 lacks taxes targeting offshoring. Calls for levies exist, such as “outsourcing taxes” but haven’t resulted in legislation .
- Incentives gaining ground: Other nations employ bonuses and tax credits for reshoring (e.g., France’s PACTE law, US state incentives). The UK needs to be exploring similar measures but it needs to act. England having the biggest workforce is directly impacted by this failure of government policy
Global Case Studies (to be expanded upon)
France/Italy: Government onshore incentives have supported service-sector returns with moderate success.
US: Federal and state onshoring programmes brought back some manufacturing and service jobs; varied results.
Outlook and WEU Campaigning Overview
1. The latest data shows UK firms still offshore nearly half of business processes. Outsourcing continues to grow in value but domestic employment in call centres has stagnated. Rising UK labour costs and hidden inefficiencies make reshoring more attractive. Though companies rarely disclose overseas staff headcounts, evidence suggests significant offshoring and consequent economic loss, offset by customer dissatisfaction and tax revenue decline.
The WEU believes that the UK Government needs to make it compulsory for English companies / UK companies to declare how many jobs are relocated oversees.
2. Repatriation can deliver meaningful economic gains. From tax revenues to local employment and brand loyalty. While punitive taxation remains unlikely in the first instance, incentive‑driven strategies have proven effective elsewhere. The UK government has the data but appears to lack the momentum to follow these examples.
The WEU believes using evidence to shape policy and corporate practices are beneficial for the economy for England . If Incentives to repatriate jobs does not work then taxing companies to ensure they do will be essential.