Debra Maxwell, CEO at ArvatoConnect, explores why the logic propping up the offshoring model is collapsing and why forward-thinking brands are turning to UK-based customer experience delivery.
Forget what you thought you knew about offshoring. The rules of customer experience (CX) delivery are being rewritten and some of the UK’s most forward-thinking brands are leading the change.
For decades, offshoring was seen as the smart, cost-efficient option. But the logic propping up that model is collapsing. AI, automation and cloud infrastructure are quickly closing the cost gap and shifting the value equation in favour of UK-based delivery.
Big brands like Barclays and BT are already leading the way. The former has reshored 800 roles to the North East, and BT now answers all consumer calls from the UK or Ireland.
We’re not witnessing a gentle return to the familiar. This is a strategic reset and the direction of travel is undeniably shifting.
What’s driving it?
Our latest data shows a clear shift. More than a third (34%) of brands are looking to bring CX back to the UK within the next year and that’s on top of the 46% already operating part of their CX onshore, with 40% running their operations here exclusively.
Why? Compliance, access to top talent and control are leading the charge according to those already in the UK.
But here’s the kicker: 73% of brands say they’d deliver CX in the UK if cost wasn’t a barrier.
And for many decision makers, that barrier is coming down fast.
Tech is helping close the cost gap
Offshoring once had a clear cost advantage but today, that gap is narrowing. AI and automation are enabling UK operations to deliver more for less, making onshoring a commercially viable model.
In fact, technology has already reduced UK CX delivery costs by almost two thirds and that’s only set to improve as AI becomes further integrated and smarter in its applications.
Our data says it all. Almost two in five (39%) of those favouring onshoring cite access to better tech as their number one reason. And it’s easy to see why. Today’s AI tools can handle demand spikes, offer multilingual support and boost productivity, all without crossing time zones.
The result? More agility. More control. Less dependency on geography and at lower cost.
As one of the only CX outsourcers already running fully UK-based operations, ArvatoConnect is uniquely positioned to help brands realise this shift, using technology to close the cost gap and deliver better outcomes.
People as the difference makers
That said, the case for onshoring goes well beyond price.
Reshoring isn’t just about the tech and location; it should also be driven by the long-held belief that brands deliver a better service when they are closer to their customers.
Today’s customers expect more than scripted replies. They want to feel heard. They want to deal with someone who “gets it.” That kind of human connection is far stronger when your team lives and breathes the same culture. Proximity builds trust and trust builds loyalty.
Our data backs this up. Alongside tech access, brands cite cultural alignment, talent retention and brand perception as key reasons to reshore. And with AI now automating the routine tasks, local teams are free to focus on what really matters: bringing empathy, resolving complex issues, making customers feel understood and building stronger relationships.
That said, one in four (26%) UK contact centre agents are considering leaving their jobs, not because of AI itself, but because of how it is being introduced. The issue lies in poor implementation, with many feeling unsupported and unclear about their future roles. According to our data, 38% of agents say they need more hands-on training to feel confident using AI, 37% want a clearer explanation of how AI fits into their day-to-day work and 21% are looking for better-defined career development plans. Without this support, agents are feeling confused and disconnected.
AI should be a co-pilot, not a wedge between brand and employee. Get it wrong, and you lose trust and talent. Get it right and AI becomes a loyalty engine.
If brands want to enjoy the benefits of localised delivery and empower their people, they can’t just deploy AI, they need to embed it the right way. That means transparent rollout, upskilling pathways and a people-empowered mindset. Get it wrong and you risk a talent drain.
So, is the future local?
Customer service isn’t just a cost centre. It can be a brand definer. And where – and how – you deliver it can speak volumes about priorities and values.
Onshoring isn’t about turning back the clock. It’s often about being able to make smarter, sharper decisions that put quality, agility and trusted experiences front and centre, at a cost that tech is making increasingly more attractive.
Customer experience may be on the cusp of coming home, but it’s not just returning. It’s getting an upgrade and evolving, with some of the boldest brands already ahead of the curve.
