Cracking the London Outsourcing Case: The Game Is On

We won't break new ground by stating that London is the city of red phone booths, double-deckers, and the world's first underground. But how much can you say about today’s London outsourcing potential and business growth opportunities? Since you're reading this article, you are probably dying to reveal the city’s hidden software gems and the current state of the business environment. Time to unveil the mystery and find out what the UK’s capital can bring to your company right now!

Step #1. Data Gathering: What Is Outsourcing?

Before scrutinizing London software development opportunities, let's revise the key idea behind outsourcing.

It's as clear as a day that a budget-friendly quality workforce, deprived of red tape and bureaucracy, is the holy grail for any enterprise. No wonder, companies from all fields of business keep searching for new ways to get at least one step closer to this goal. And one of the possible solutions is entrusting certain business processes to third parties, i.e., outsourcing.

Depending on your goals and the location of an outsourcing company, there can be three outsourcing models:

• In case you need to enrich your in-house team with dedicated project managers under familiar laws, choose a managed service provider within your home country (a.k.a. onshoring).
• Nearshoring is a perfect way to minimize language & cultural barriers and reap the benefits of cost-effective core business solutions since an outsourcing partner is located close to your country.
• If your primary reason is to enjoy high-quality services & the latest technologies, and a distant location is not an obstacle, go for offshoring.

By the way, according to Deloitte, in 2023, global outsourcing spending may reach $731 billion. Such a huge figure reveals that more and more businesses tend to rely on outsourcing (in 2021, 80% of small business owners planned to outsource, while in 2022, the figure has risen up to 90%).

Step #2. Analyzing the UK Business Climate

If brain is the new sexy, outsourcing is the new smart. Indeed, outsourcing is an excellent solution for businesses aiming to boost their efficiency in a cost-friendly manner. Still, select the destination wisely to enjoy its benefits to the fullest. To fairly assess London outsourcing potential, it's crucial to analyze the business climate of the whole country.

For decades, the United Kingdom has been considered one of the most reliable places to launch an enterprise. Its convenient geographical position, powerful banking sector, and time-tested legal standards have contributed to the country's robust, business-friendly environment. And although the consequences of Brexit, the pandemic, the geopolitical turbulence of 2022, and the record-high inflation still disrupt certain economic sectors, the British GDP per Capita keeps growing, and its IT industry remains the realm with strong potential.

Moreover, when looking at the UK corporate tax rate among G20 countries and a formidable number of its double tax treaties, it becomes clear why so many businesses keep choosing the country as a jumping-off point.

The UK in Figures

Step #3. Time to Analyze Outsourcing Companies in London

Favorable economic conditions have turned the UK into the home for various tech hubs with the key centers in Manchester, Edinburgh, Glasgow, Belfast, and other cities. But for many companies venturing into software development outsourcing, London is becoming the most preferable destination.

Below, you'll find a tiny part of the promising IT outsourcing companies London may boast today.

Sabio

Wanna boost customer experience with a piece of new technology? Take a look at this custom software development company whose excellent support services and AI-driven chatbots may easily replace a dedicated account manager.

DevsData Tech Talent LLC

Scattered across London, Poland, Canada, and the USA, this full-service company can offer you high-performing tech solutions that cover mobile & web development, data analytics, IT consulting, and cloud services.

IntellectSoft

Seeking reliable IT-managed services that can help you disrupt the healthcare, traveling, or e-commerce field? Turn to IntellectSoft. Its dedicated teams do know how to develop robust IT systems, provided with ongoing support.

Theodo UK

Right in Soho Square, you'll find one more promising software provider. When it comes to outsourcing, this company can boast excellent IT consulting services and full-stack software development solutions empowered by reliable cyber-security mechanisms.

HeadChannel

Feel the need to add to your in-house staff extra specialists with strong project management skills? Have a look at HeadChannel — a leading provider of digital products, capable of delivering upscale software development services and ensuring full-cycled support.

Step #4. Checking the Pros & Cons of London Outsourcing Services

If you consider outsourcing IT, London may be included in your candidate list as the city that unlocks tangible opportunities. At the same time, there are certain pitfalls that you should be aware of. Read on to reveal whether IT outsourcing to London makes sense from a business perspective.

Why Outsource to London?

Large Talent Pool

Since technology is spreading over the globe in leaps and bounds, the British job market is rushing to meet the growing demand. Proactive developers are required in every corner of the country, so the tech talent pool gets significantly extended every year. No wonder, when it comes to outsourced IT services, London companies are ready to provide dedicated developers.

Minimal Communication Silos

Sometimes, outsourcing services are accompanied by miscommunication through language barriers. As a result, certain processes slow down, and the resources get wasted. But that's not the London case, where most of the outsourced developers are native English speakers or are well-versed in English.

What Challenges to Expect?

Heavy Price

What's the catch? Well, the above-mentioned benefits may cost you a pretty penny. High business standards entail high hourly rates. And if certain US companies may still outsource IT support to London and benefit, most other countries are likely to find it pricey.

Lack of Diversity

Although the UK talent pool is pretty large, it still lacks diversity. Not only does it relate to the underrepresentation based on gender and race in the IT field, but also to the lack of senior-level specialists in cybersecurity, technical architecture, and big data.

Step #5. Case Solved: Final Word

The investigation is coming to an end, so it's high time to sum up the results. On the one scale, we have an attractive outsourcing destination that can boast multiple business growth opportunities and a high number of brilliant developers. On the other — we face sky-high hourly rates and talent shortages in certain IT domains.

Still, when it comes to business, money does matter. So, if outsourced IT London developers seem unattainable to you, don't give up and try your luck in the countries of Eastern Europe or less pricey UK cities (like Basingstoke, Newbury, or Leeds) that abound in innovative tech hubs. To find your perfect match, go through ratings & reviews platforms and scrutinize the core competencies of various companies. And don't forget to pay attention to hourly rates!

By the way, Qulix is an international software development company with years of experience up its sleeves and a lovely office in Cheshire (northwest England). Its cutting-edge technologies and revolutionary services will come in handy for everyone seeking help in software development, migration, and testing. 

Wanna pick a UK-based outsourcing partner with an East-European price tag in just one click? Turn to Qulix. Our development team is driven to address any challenge and push your business toward new heights.