The cost of outsourcing for end-users within the UK looks set to increase as country begins to come out of recession, research has suggested.

The operating costs associated with areas such as real estate and staff are set to increase over the next 12 months, according to the report from technology consultants Ovum.

This will lead to more staff employed on a permanent in-house contract and could force outsourcers who want to retain the best staff to up pay, in a move which will pass increases on to clients.

Ovum lead analyst Peter Ryan said: “Onshoring centres in North America, Europe and Australia/New Zealand, are already seeing vacancy rates that are substantially higher than usual.”

Significant onshore opportunities for outsources will still exist however, according to the report, particularly in areas that have been hit by the recession.