Tech is driving a major reshoring shift with more than a third of customer experience (CX) leaders set to move operations to the UK within the next year, according to research from ArvatoConnect
- The research follows major organisations, including BT, Thames Water and Barclays, moving customer service operations back to the UK in a reshoring trend that will positively impact the economy
- More than a third (34%) of CX leaders are planning to move part or all of their customer service operations back to the UK in the next year
- 73% would reshore if cost was not a factor, and tech is helping to close the gap
- AI-powered digital agents can already cut UK customer service delivery costs by almost two-thirds
Brands are bringing their customer service operations back to the UK as technology tears up the economics of delivery, according to new research from ArvatoConnect.
The findings of a survey of 200 in-house UK customer experience leaders reveals that 34% say their businesses are preparing to reshore part or all of their operations in the next 12 months, adding to the 46% that already deliver at least some of their customer services onshore.
The company says the shift is being fuelled by rapid advances in AI, which are cutting delivery costs by almost two-thirds – from approximately £42 per hour for a human agent to just £16 – and putting UK-based operations on par with leading offshore destinations, such as South Africa.
The research shows that the reshoring trend is also being powered by other strategic priorities.
Nearly a third (31%) say better staff retention is influencing their move, with one in four pointing to cultural familiarity (26%), customer preference for local support (26%), better access to technology (25%) and simplified management and training (25%) as major pull factors.
Almost three in four (73%) say they would reshore if cost wasn’t a factor, according to the research – and technology is now making this possible.
James Towner, Chief Growth Officer at ArvatoConnect, said: “The customer experience playbook has had the mantra of offshoring to cut costs, while balancing service quality. But this model is losing relevance and fast.
“Technology is reshaping the economics and expectations of customer service and the question now isn’t where to move operations, it’s whether to offshore at all.
“Brands are waking up to the fact that they no longer need to compromise between cost, quality and control with the right use of technology.
“Added to this, they face challenges that offshoring can’t solve as effectively, from maintaining cultural coherence and ensuring robust data protection, to managing increasingly tighter regulatory frameworks.
“Onshoring is no longer a luxury, and as we’re seeing across other industries, it’s becoming a strategic and logical, future-proof move that will have a positive impact on economic growth.”
Part of Bertelsmann, ArvatoConnect is a trusted digital transformation partner, specialising in customer experience and business optimisation for premium automotive groups, technology companies, charities, local authorities and central government departments, including HMRC, Fremantle and the Department of Education.
The business was recently recognised as Europe’s Top Digital Transformation Solution Provider for 2025 by CIOReview Europe.
To download the full report – Is the time up for offshoring? – visit the link here
