UK businesses are under serious pressure. Wages are rising, employer National Insurance contributions have jumped to 15%, and the Employment Rights Act is adding further complexity. For many owners, margins are tightening to a breaking point.
We have seen that the smartest businesses aren't just absorbing the hit; they're rethinking how they build their teams. A popular alternative has become moving towards offshoring.
Offshoring can be a useful tool for industries where the work is standardised, digital, and can be done remotely. Examples of these industries are software development, IT support, data entry, customer service, finance and accounting, and manufacturing. Industries that require local knowledge, physical presence, or high-trust relationships are not suited for offshoring. Examples of these are healthcare, construction, legal services, emergency response, and hospitality. Businesses should ask themselves, “Does this role require someone to physically be there?” and if the answer is yes, offshoring is likely not for them.
Legends EOR is an Employer of Record that many UK businesses have used to hire remote employees in South Africa. Unlike many other EORs, Legends EOR has offices and infrastructure on the ground. They manage payroll, HR, IT, compliance, and employee support directly rather than through third-party vendors or automated platforms. This not only ensures a smooth work experience for the employee but also allows the business to scale without the added administrative pressures.
UK businesses can save 50-70% on salary costs by hiring in South Africa, where the employer tax rate is just 1% compared to the UK's 15% NI contribution. According to the IFS, the recent NI hike has resulted in businesses having to pay an additional £900 per employee on median average earnings per year. This is a significant increase for businesses hiring a team of 50 or more.
From our experience, UK businesses are not offshoring to save alone; it has also presented an opportunity to scale. A London salary that funds one mid-level hire can support two or three high-calibre South African professionals. Offshoring has allowed businesses to grow their employee base further than they’ve imagined.
Through our work, we have learnt that South Africa is one of the most preferred countries when looking for offshore talent. English is one of their official languages, their time zone is virtually identical to the UK, and they have world-class universities producing graduates across finance, tech, and law.
Offshoring is changing the way UK businesses hire and run their businesses at a fast rate. The cost savings are often the initial pull, while the quality is the reason they stay. We can agree that for businesses feeling the squeeze, it's worth exploring.
Offshoring works well for roles that are standardised, digital, and can be performed remotely. This includes software development, IT support, data entry, customer service, finance and accounting, and manufacturing. It is less suitable for industries that rely on local knowledge, physical presence, or high-trust in-person relationships, such as healthcare, construction, legal services, emergency response, and hospitality. A useful test is to ask whether the role requires someone to physically be on site. If it does, offshoring is unlikely to be the right fit.
South Africa offers a strong combination of practical advantages for UK businesses. English is one of its official languages, its time zone is virtually identical to the UK's, and its world-class universities produce skilled graduates across finance, tech, and law. These factors make collaboration seamless and help maintain the quality standards UK businesses expect.
