Strategic Outsourcing: A Solution to Rising Wages

As the UK witnesses a surge in its minimum wage rates, business owners are tasked with navigating the delicate balance between sustaining profitability and ensuring fair compensation for their workforce.

By John T.
Posted on
April 8, 2024

In the bustling landscape of business, change is the only constant. As the UK witnesses a surge in its minimum wage rates, business owners are tasked with navigating the delicate balance between sustaining profitability and ensuring fair compensation for their workforce. Amidst this challenge, strategic outsourcing emerges as a beacon of efficiency and cost-effectiveness, offering a lifeline to businesses grappling with escalating labour costs.

At Bourne Global, we go beyond traditional outsourcing models. Our goal is to set a new standard marked by smoothness, effectiveness, and a strong focus on ensuring our clients succeed. Our approach is all about people – a dedicated and appreciated team that acts as an extension of your business. We're committed to driving your growth worldwide!

For businesses, especially small and medium-sized enterprises, this wage increase brings new challenges. Rising salaries lead to higher operational expenses. In industries where low-wage roles like customer service and sales are common, this hike can strain their resources. Now, companies face a decision: bear these higher costs, risking competitiveness and profits, or find innovative ways to uphold service quality and financial stability.

Maximise efficiency, minimise costs: Enter Bourne Global, a distinguished name in the realm of business process outsourcing


Outsourcing is a smart long-term investment. Despite economic challenges, it's a vital strategy for businesses. Many organisations outsource customer support to save money, especially now when finances are uncertain. At Bourne, we focus on boosting your profits by lowering customer engagement costs and improving ROI.

However, outsourcing call center services to different parts of the world is not equal. Choosing the right location can significantly impact the success of your outsourcing strategy. South Africa stands out as an excellent choice for outsourcing for several reasons:

  1. Time Zone Compatibility: South Africa operates in a time zone closely aligned with the UK, enabling real-time collaboration and minimising operational lag.
  2. English as a Primary Language: Communication is smooth and effortless, as English is predominantly spoken, ensuring that customer interactions and business communications are on par with UK standards.
  3. Cultural Similarities: The cultural nuances and understanding are closely aligned, ensuring that the services provided resonate well with UK customers and businesses.
  4. Saving On Costs: By outsourcing to South Africa, your business could save a large amount of money as labour costs are significantly lower than in the UK and other parts of the world.

How can outsourcing serve as a strategic tool for tackling rising wages?

So you’re probably wondering how much companies actually save by outsourcing? While there’s no fixed amount, outsourcing is likely to reduce a company’s costs by 15% or more.

However, the actual savings depend on how many business operations you plan to outsource. The Harvard Business Review states that cost reductions of around 20% to 30% are seen by outsourcing non-core business processes, like billing and payments, recruitment, lead generation and payrolls.

  1. Cost Savings on Employee Expenses: Instead of paying for payroll taxes, benefits like medical insurance, travel allowances, and pension plans for in-house employees, outsourcing involves paying only for the service package, which includes agent payments and training costs. No taxes or employee benefits are required.
  2. Reduced Equipment Costs: In-house teams necessitate purchasing equipment like computers, headsets, microphones, and call software, along with potential IT infrastructure upgrades, leading to increased energy consumption and expenses. Outsourcing includes equipment provided by the outsourcing company for support teams.
  3. Space Efficiency: Having more employees requires larger workspace, whether through renting or expanding current offices, which consumes time and money. Outsourcing eliminates this need by using pre-existing workspaces for support teams.

How Are Recent Changes in UK Minimum Wage Impacting Workers of Different Age Groups?

This month, April 2024, the landscape of payroll undergoes a significant transformation.

So, here's the scoop on the recent changes in minimum wage rates in the UK. Workers aged 23 and above are now seeing their hourly rate rise from £10.42 to £11.44. Meanwhile, apprentices under 19 are experiencing a jump from £5.28 to £6.40 per hour. These adjustments are causing ripples throughout the UK workforce, affecting employees of different age brackets.

National Minimum Wage & National Living Wage Rates


What Does Week 53 Mean for Businesses and Employees in the New Tax Year?

So, let's talk about this Week 53 thing in the tax year. HM Revenue & Customs is jumping in to sort out the quirks that come with it. Employees getting paid for Week 53 get an extra bit of personal allowance, which helps fix tax underpayment issues. But for businesses, this adds another headache to their already complicated payroll duties.

Workplace Pensions


Bourne Global, allows companies to streamline their operations, enhance productivity, and most importantly, manage labour costs without compromising quality. Instead of bearing the burden of escalating wages by hiring additional employees, partnering with Bourne Global enables businesses to access a talented workforce at a fraction of the cost.

Our tailored approach ensures that clients experience tangible results, with case studies showcasing significant cost reductions and enhanced wage management.

Discover the power of strategic outsourcing with Bourne Global. We're your beacon of hope, driving efficiency, cost-effectiveness, and unwavering resilience in challenging times. Embrace the future with us and embark on a transformative journey toward unparalleled success. Contact us today.

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