Comments attributed to James Towner, Chief Growth Officer of ArvatoConnect
For years, offshoring was seen as the obvious, cost-efficient way to deliver customer service. But that logic doesn’t hold up anymore.
AI and automation are closing the cost gap fast and shifting the value equation back in favour of UK-based delivery.
Put simply, onshoring is back, not as a sentimental return to the past, but as a smart, future-proof strategy.
And leaders are seeing it the same way. Our latest research shows that almost three in four (73%) UK customer experience leaders say they’d reshore if cost wasn’t a factor. Add to that the fact that a third (34%) already plan to move operations back to the UK within the next 12 months, and the direction of travel is hard to miss.
AI is resetting the cost equation
Cost has always been the biggest reason to offshore. Cheaper labour made it possible to deliver at scale.
But that picture has changed dramatically. AI has rewritten the maths for everyone, with digital agents now costing around £16 an hour compared with £42 for UK-based human agents.
Suddenly, keeping operations closer to home doesn’t just sound like a nice idea, it makes financial sense too.
More than a move, it’s a strategy shift
What we’re seeing now isn’t just about moving work back to the UK. It’s about a fundamental shift in strategy, skills and mindset.
As more interactions move to digital agents, the orchestration layer becomes critical. That’s what ensures a seamless journey between digital and human delivery so the customer never feels the handover.
And behind the scenes, our governance, support and management functions are evolving fast too. These teams now need to oversee both human and digital agents, keeping systems resilient, compliant and consistent. AI, in particular, requires the same level of rigorous governance we’ve always applied to people from quality monitoring to compliance checks.
Then there’s regulation. As compliance frameworks tighten and data protection climbs higher up the agenda, businesses are realising they need tighter control over how services are delivered. Local delivery gives a reassurance that’s hard to replicate from thousands of miles away. Onshoring means more control, more security, and especially for sectors handling sensitive data, stronger protection for reputation as well as operations.
This is why onshoring today isn’t just about geography. It’s a complete rethink of how customer service is being designed and delivered.
Beyond the economics
Leaders are also telling us they see real advantages in being closer to their teams and customers.
It helps with retention, with 31% citing this as a key motivator. It strengthens cultural fit, with 26% pointing to the benefits of local familiarity and customer preference. And it makes operations simpler with 25% highlighting easier access to technology and more effective training when teams are UK-based.
But perhaps most importantly, it builds trust. Customers want to feel understood and that connection is stronger when your agents share their culture and context. Proximity fosters empathy, and empathy drives loyalty.
People and technology together
One thing’s clear. AI alone won’t make onshoring work. Success depends on how well we bring people and technology together.
Our data shows that poor rollouts risk alienating the very people who make great customer experience possible. Right now, one in four (26%) contact centre agents are considering leaving their jobs, not because of AI itself, but because of how it’s being introduced.
That’s a wake-up call. Without transparency, training and a clear vision for how roles will evolve, employees feel sidelined.
AI should be a co-pilot, not a wedge between brand and employee. Get it wrong and you risk losing both trust and talent. Get it right, and AI becomes a loyalty engine.
The future is local
Customer service isn’t just a cost centre. It defines reputation, loyalty and long-term value. Where and how it’s delivered can speak volumes about a company’s priorities.
And right now, the evidence is pointing to onshoring, not as a return to the past but as a reset for the future.
Backed by AI, supported by people, strengthened by orchestration, governance, cultural coherence and compliance, it’s becoming the logical, sustainable choice across industries.
Customer experience is coming home, and this time it’s smarter, stronger and built to last.