British jobs are moving overseas in “droves” as rising costs, wages, and employment taxes push companies to outsource, according to offshoring specialist The Legends Agency.
The London-based firm, which has supported over 200 UK businesses in recruiting South African talent across more than 1,000 roles, has nearly tripled its workforce this year alone in response to soaring demand.
In April 2024, the firm was a £300,000 operation. 18 months later, the company is transformed and on target to achieve £8m turnover in 2025.
The Legends Agency has observed a notable surge in offshoring among sectors previously considered immune to the trend, including back-office functions in construction and hospitality.
More than 100 South African employees now work remotely for 15 UK hospitality and construction companies through the agency.
With average salaries of approximately £35,000, these roles alone would generate around £995,000 in tax receipts if located in the UK. Offshored positions span admin assistants, rota managers, back-office functions, sales, and customer service roles.
UK employers are increasingly turning to South Africa for its favourable time zone alignment, highly educated workforce, and competitive employment costs.
The offshoring acceleration follows recent increases to employer National Insurance contributions and minimum wage rates. The Employment Rights Bill is set to further reshape the business landscape through measures including day-one employment rights and a reduction of the unfair dismissal qualifying period to six months.
Alex Fenton, Group CEO of The Legends Agency, said, “While the Government’s recent employment policies are well-intentioned in protecting workers’ rights, they’ve had the unintended consequence of making UK hiring significantly more expensive and less flexible for businesses.
Companies don’t want to move jobs overseas, but we’re now seeing roles relocate abroad in droves as firms are forced to make difficult decisions to remain competitive. Offshoring enables them to access quality talent at sustainable costs while maintaining the agility needed to survive in today’s market.
Businesses feel caught between rising operational costs and the need to stay viable. We’re witnessing this trend accelerate as organisations navigate an increasingly challenging economic landscape that, unfortunately, is pushing jobs abroad rather than creating them at home.
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