The UK business process outsourcing (BPO) sector is undergoing a period of structural adjustment. Rising operating costs, extended client payment terms, and increasing expectations around service quality and resilience have placed sustained pressure on many call centre operators. Against this backdrop, acquisition activity has accelerated. However, not all acquisitions are equal in outcome or intent.
A growing distinction has emerged between acquisitions driven primarily by financial extraction and those grounded in long-term operational stewardship. In people-intensive sectors such as BPO, the difference between these approaches is material – not only for shareholders, but for clients, employees, and service continuity.
Acquisitions Without Operational Expertise
Where call centre businesses are acquired without sufficient sector or operational expertise, challenges often emerge quickly. Cost-cutting measures may be implemented without a full appreciation of service dependencies, workforce dynamics, or client expectations.
This can lead to increased attrition, service degradation, and ultimately client dissatisfaction.
Research consistently highlights the importance of operational continuity in outsourced service environments. Disruption to leadership, workforce stability, or delivery models can materially affect service outcomes, particularly in regulated or mission-critical sectors such as healthcare, local government, and emergency services (Deloitte, 2023). In such cases, short-term financial optimisation may undermine long-term enterprise value.
The Importance of Preserving Brands and Teams
In BPO, brands are closely tied to trust, delivery consistency, and long-standing client relationships. Similarly, experienced frontline teams carry institutional knowledge that cannot be rapidly replaced. Preserving both is therefore central to maintaining service quality post-acquisition.
Evidence suggests that employee engagement and retention are strongly correlated with customer satisfaction and operational performance in contact centre environments (CIPD, 2022). Acquirers who prioritise workforce stability during transition periods are better positioned to protect client relationships and sustain performance. Responsible ownership recognises that value creation in BPO is cumulative and relational, rather than transactional.
A Stabilisation-First Approach
In periods of economic pressure, many otherwise viable call centre businesses experience short-term cash flow challenges rather than fundamental structural weakness. Rising wage costs, technology investment requirements, and elongated receivables cycles have compressed margins across the sector (PwC, 2024).
A responsible acquirer is therefore defined not only by capital availability, but by the ability to deploy that capital in a stabilising and constructive manner. This includes ensuring payroll continuity, maintaining service levels, and providing operational leadership during periods of transition.
Such an approach allows management teams and employees to remain focused on delivery, rather than disruption, while creating the conditions for longer-term improvement.
Stewardship as a Value Driver
From a corporate finance perspective, long-term value in BPO is generated through operational excellence, client retention, and scalable platforms – not through short-horizon extraction. Integrated operating models, shared technology infrastructure, and cross-utilisation of services increasingly underpin competitive advantage in the sector (McKinsey & Company, 2023).
Responsible acquirers act as stewards of these systems. By combining governance discipline with operational capability, they can enhance resilience, invest in people and technology, and support sustainable growth. In doing so, they align the interests of clients, employees, and capital over the long term.
Looking Ahead
As consolidation in the UK BPO sector continues, the role of responsible ownership will become increasingly important. Businesses, clients, and employees alike benefit from acquirers who bring experience, patience, and a commitment to continuity. In a sector defined by people, service, and trust, stewardship is not a constraint on value creation – it is a prerequisite for it.
For confidential discussions regarding acquisitions or strategic partnerships, please contact info@ishercapital.com.
References
- CIPD (2022) Employee engagement and organisational performance. Chartered Institute of Personnel and Development
- Deloitte (2023) Global outsourcing and shared services survey. Deloitte Insights
- McKinsey & Company (2023) The next horizon for customer experience operations. McKinsey Global Institute
- PwC (2024) UK outsourcing and operational resilience outlook. PricewaterhouseCoopers